KUALA LUMPUR (Nov 27): Supermax Corp Bhd group managing director Datuk Seri Stanley Thai's lawyers said there are substantial merits for the appellate court to reverse his conviction based on the evidence adduced.

Last Friday, the prominent businessman was sentenced to a five-year jail term and fined RM5 million for insider trading involving APL Industries Bhd shares. He was found guilty along with former remisier Tiong Kiong Choon.

In a brief statement today, Thai's lead defence counsel Datuk K. Kumaraendran and co-counsel Devanandan said on the instruction of Thai, they have filed a notice of appeal against his conviction and sentence immediately after the decision was delivered by the Sessions Court Judge on Friday.

"In any event, the sentence imposed is manifestly excessive and against the trend of cases," they said.

"Although there were 50 million APLI (APL Industries Bhd) shares of which 45 million were held by Supermax and five million by Thai in his personal capacity, he has never traded nor did he share in any profits as part of any quid pro quo at any time," they added.

The court has since granted a stay of execution pending appeal and that was released when the court adjourned at 1pm on Friday.

Thai was the former managing director of APL Industries, a rubber glove maker that was delisted from Bursa Malaysia in February 2009.

Yesterday, Supermax chairman Tan Sri Rafidah Aziz said in a statement that the group and its board of directors "stand strongly behind" Thai, who is Supermax's managing director, and that business is as usual.

Rafidah had also stressed that Thai's charge was related only to APL Industries and not Supermax.

Supermax shares closed 5.3% or 11 sen lower at RM1.98 today, with 17.2 million shares traded, giving it a market value of RM1.3 billion.