KUALA LUMPUR (Nov 14): Tatt Giap Group Bhd today announced changes in its board of directors which coincided with the recent emergence of new substantial shareholders in the loss-making stainless steel pipe trader and manufacturer.

According to Bursa Malaysia filings today, the group saw three new appointments to its board as well as one resignation.

The new appointees are Woon Kok Kee and Khoo Song Heng who are now executive directors of the group and Lim Peng Tong, who is designated as an independent and non-executive director.

On Nov 9, Woon and Khoo had emerged as substantial shareholders in Tatt Giap via their private investment vehicle Dynaciate Engineering Sdn Bhd, which had acquired 22.1 million shares or a 12.95% stake in the group via a direct business transaction.

Khoo, 50, is currently the managing director of Dynaciate while Woon, 50, is executive director. Both are co-founders of the group.

In one of the filings, Tatt Giap said Lim, 60, has just recently retired from Malayan Banking Bhd after serving for 38 years with his last position as regional head of business banking of northern region (Penang, Kedah and Perlis).

Meanwhile, former Tatt Giap chairman Datuk Siah Kok Poay, 64, has retired as a non-independent and non-executive director.

Tatt Giap also announced that it has disposed of Superinox International Sdn Bhd and Formosa Industries Sdn Bhd as part of  its rationalisation exercise to dispose of inactive and loss-making subsidiaries and to focus on other business that will generate positive returns to the group.

The disposal will result in an estimated gain upon disposal of RM285,823 at Tatt Giap Group level.

The group widened its net loss to RM3.01 million in the first financial quarter ended Aug 31, 2018 (1QFY19) from RM975,000 a year ago as revenue dropped 77.1% to RM5.01 million from RM21.92 million in 1QFY18.

Tatt Giap was slapped with an unusual market activity query from Bursa on Nov 9 on the sharp rise in its share price and volume. Tatt Giap later responded to the query that it could be due to subsisting interest arising from the four letter of awards it had received valued at RM67 million and the emergence of new substantial shareholders.

Tatt Giap shares closed down one sen or 4.44% at 22 sen today, giving it a market capitalisation of RM36.68 million.