KUALA LUMPUR (May 10): Eastern & Oriental Bhd (E&O) said Tan Sri Mohd Bakke Salleh has resigned as non-independent and non-executive director of the group.

In a filing with Bursa Malaysia, the property developer said Bakke's resignation, effective immediately, was "due to the cessation of Sime Darby Bhd as a major shareholder of the company".

Bakke, 66, was appointed to the board of E&O on Nov 29, 2011.

He previously served as president and group chief executive of Sime Darby, and as executive deputy chairman and managing director of Sime Darby Plantation Bhd.

He is currently the chairman of Telekom Malaysia Bhd and an independent and non-executive director of Petroliam Nasional Bhd.

On March 26, Sime Darby sold its remaining 10.89% stake in E&O to Amazing Parade Sdn Bhd, a private investment vehicle of E&O non-independent and non-executive director Datuk Tee Eng Ho and his brother Tee Eng Seng, for RM93.5 million, which was a 74% discount to what Sime Darby paid for in 2011.

Following the sale, the combined shareholding in E&O of Amazing Parade and persons acting in concert rose to 42.71%,  triggering a mandatory takeover offer at 60 sen per share.

E&O shares closed unchanged at 59.5 sen today, for a market capitalisation of RM867 million. Some 831,000 shares were traded. Year-to-date, the stock has gained 35% from 44 sen on Jan 4.