Business

Wednesday June 27, 2012

Board tussle at Apex Equity heats up

By TEE LIN SAY
linsay@thestar.com.my


PETALING JAYA: Speculation on who will helm Apex Equity Holdings Bhd continues, with sources saying that the fight for control has yet to end, and the counter party headed by Metroplex Bhd possibly calling an EGM.

On Monday, Apex's board of directors, which consisted of Datuk Azizan Abdul Rahman and Leow Yan Seong reappointed ousted executive chairman, Chan Guan Seng as the company's executive director with effect from June 26 in an emergency board meeting. This was just two days after he was ousted during the company's AGM on Thursday.

“Reappointing Chan as executive director was a technical issue. After he was ousted, there was no executive director on the board. According to rulings, the board of directors has the power to re-elect an executive director, because the company cannot go ahead without an executive head,” said a source close to the company.

“The board of directors feel that the appointment of Chan Guan Seng is currently in the best interest of the company especially to provide a firm leadership at this critical state,” said Apex in an announcement to Bursa Malaysia on Monday.

Chan was appointed to the board of Apex Equity on Nov 21, 1990. He is also the managing director of JF Apex Securities Bhd, which is a wholly owned subsidiary of Apex. Chan has 32 years' working experience in the securities industry.

Last week, the tussle in Apex Equity took a hostile turn with Chan, and director Lew Lup Seong not re-elected at the company's 22nd AGM.

During the meeting, three resolutions, including the re-election of Chan and Lew, as well as the approval of authority to allot shares, were not approved by shareholders.

Some 62% or 82.15 million of votes were against the re-election of Chan. Some 60% or 79.71 million were against Lew's re-election.

The fight to oust Chan is apparently led by Metroplex, which is controlled by Lim Siew Kim, who is the daughter of the late Tan Sri Lim Goh Tong. Lim is married to Dick Chan, hence making her the sister-in-law of Chan Guan Seng.

According to Bloomberg, as of April 27, Fun Sheung Development Ltd is the largest shareholder with a 14.97% stake. This is followed by Chan with an 8.34% stake and Metroplex with a 6.32% stake.

Apex closed the day down 5 sen to RM1.10 on volume of 2.42 million shares. It was issued an unusual market activity query on Monday after its share price rose to an intra-day high of RM1.25.

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