KUALA LUMPUR (May 29): Kerjaya Prospek Group Bhd (KPG) co-founder Datuk Tee Eng Ho is tightening his grip on premium property developer Eastern & Oriental Bhd (E&O).

From the initial shareholding of 11.18% in 2016, Tee has been gradually accumulating E&O shares through his family private vehicle, Amazing Parade Sdn Bhd.

On March 26, Tee acquired Sime Darby Bhd’s last block of a 10.89% stake in E&O for RM93.5 million or 60 sen per share. The purchase brought the combined shareholdings of Amazing Parade and persons acting in concert to 42.71% from 31.82%, triggering a mandatory general offer (MGO) by passing the 33% threshold.

How did Tee end up having the controlling stake in E&O? Was there an arrangement between Tee and founding member Datuk Seri Tham Ka Hon that led to the former taking over management control of E&O?

What does Tee see in the property outfit? Will Tham be slowly exiting as his shareholding has declined to 18.86% from a high of about 29% in August 2006?

In the latest issue of The Edge Malaysia weekly, we spoke to Tee who shared his plans for E&O, which was in the red for two years in a row. For the financial year ended March 31, 2021 (FY21), the group posted a net loss of RM73.24 million due to impairment losses and write-downs on properties of RM133.8 million.

Note that E&O shares have been on a downward trend since March 2017, hitting a low of 30 sen in March 2020 following the global equity market rout.

Other interview highlights include the progress of E&O’s flagship Seri Tanjung Pinang project and financial issues, as well as Tee's views on the property market.

As the largest shareholder of KPG and E&O, he also shared updates on business activities of the two construction and property firms.

Read more about it in The Edge Malaysia weekly’s May 31 edition.

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