Thursday 28 Mar 2024
By
main news image

KUALA LUMPUR (Dec 5): Bumi Armada Bhd chief executive officer (CEO) and executive director Hassan Assad Basma, who sold the remainder of his stake in the company on the open market due to margin calls yesterday, has tendered his resignation with effect from Jan 1, 2015.

In a filing with Bursa Malaysia today, Bumi Armada said Hassan has requested for an early release of his contract of employment due to family reasons, which the board of directors has agreed to.

Hassan will also relinquish his directorships in other companies within the Bumi Armada Group, on the same effective date.

The Dutch, however, will continue to be engaged as a consultant to the company, where required and appropriate, on specific projects, the statement read.

"The Board has initiated steps to search for a new CEO, with in-depth relevant experience in the offshore and marine services industry," it further read.

Pending the appointment of a new CEO, Chan Chee Beng, a member of the board since 2003, has been re-designated as executive director and acting CEO, also with effect from Jan 1 next year.

Chan has been a member of the executive committee of Bumi Armada since 2008, acting as its chairman from 2013.

"Chan will work closely with, and provide leadership to the management team, to ensure continuity of relationships with the company's key clients and other stakeholders, and delivery of existing projects. The company has also undertaken a review of its existing projects to ensure long term sustainability," said Bumi Armada.

It is worth noting that Hassan has been paring down his stake in Bumi Armada in the past few months. In mid-October, he disposed some 5.5 million shares after the company's bonus issue. In November, he sold another 1.76 million Bumi Armada shares.

On Dec 4, he sold one million Bumi Armada shares at RM1.02, and another block of 1.74 million shares at RM1.03, due to margin calls on loan facilities taken by him to purchase the shares.

He still has an interest in 50.62 million unissued Bumi Armada shares, arising from outstanding options granted to him under the company's employee share option scheme.

Meanwhile, Bumi Armada, in the same statement, said its board remains confident of the long term fundamentals of the company, supported by its firm orderbook of RM21.8 billion.

In particular, the company said it continues to believe in its core floating production, storage and offloading (FPSO) business, which is anchored by long term contracts.

"With its recent successful rights issue, which raised RM1.98 billion of proceeds, the company is well-placed to continue to grow its business," said Bumi Armada.

      Print
      Text Size
      Share