KUALA LUMPUR: Ire-Tex Corp Bhd group managing director (MD) and co-founder Datuk Dr Yap Tatt Keat has ceased to be a substantial shareholder of the company, which manufactures a range of polymer-based protective packaging products.

In a filing with Bursa Malaysia yesterday, it was revealed that Yap last Tuesday disposed of 13.3 million shares that represented a 10.68% stake in the company via an off-market disposal at 31 sen per share or RM4.12 million in total to US incorporated firm, Ko Ltd Partnership.

After the disposal, Yap is left with 464,802 shares or a 0.35% stake in Ire-Tex, while Ko Ltd, also a co-founder of Ire-Tex, re-emerged as a substantial shareholder of Ire-Tex with a 10.68% stake.

Ko Ltd had originally owned an 11.59% stake or 5.32 million shares in the company, but on Nov 1, 2013, sold off its entire stake to Datuk Ooi Kock Aun for an undisclosed sum.

Ooi is a close associate of Ire-Tex’s largest shareholder Datuk Tey Por Yee, who owns a 24.67% stake.

When contacted, Ire-Tex executive director Dr Jim Lai Chee Chuen told The Edge Financial Daily that the disposal was part of Yap’s retirement plan.

“I think they (Ko Ltd) have confidence in Ire-Tex. Maybe it is a good price to them as well, hence they are willing to buy the shares again,” he said.

Lai said Yap, 49, who had earlier expressed his intention to retire early after 20 years of service with Ire-Tex, would need at least one year of transition before he will be able to completely exit the company.

“It was also his (Yap) commitment [to stay on at least one year] that gives stakeholders the confidence to stay with us,” he added.

Yap did not seek a re-election as MD during the group’s annual general meeting (AGM) on June 29, but subsequently deferred his retirement after key stakeholders such as bankers, customers and suppliers voiced their concerns about his unexpected departure.

Consequently, Yap was reappointed MD in a board meeting held immediately after the AGM and Ire-Tex said he would remain on the board until a succession plan was put in place.

Ire-Tex (fundamental: 0.55; valuation: 0.9) fell half sen or 1.52% to close at 32.5 sen yesterday, for a market capitalisation of RM42.9 million.

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This article first appeared in The Edge Financial Daily, on July 21, 2015.