Digistar to reward former ED Ong with 2 studio suites and a Merdeces Benz

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KUALA LUMPUR (March 31): Electronics systems supplier Digistar Corp Bhd said it would reward its former executive director Ong Fee Chong who had worked in the company for 12 years and had resigned last month, with two studio suites and a Mercedes Benz, collectively worth RM345,926.

In an announcement with Bursa Malaysia today, Digistar (fundamental: 1.05; valuation: 0.60) said its board of directors had agreed to pay Ong the gratuity, “for his past services and contribution to Digistar group”.

Ong, who was a director of Digistar since Aug 18, 2003, resigned as executive director of the company effective Feb 10 this year, “due to other work and commitment that requires his full attention”.

The two studio suites, with a combined 558 sq ft, are located in Melaka. The suites are priced at RM164,400 each. Digistar said they will pay Seni Pujaan Sdn Bhd, a wholly-owned subsidiary of Digistar, for the said suites.

Meanwhile, Digistar said the Mercedes Benz it was rewarding Ong with, had always been used by Ong. The net book value of the motor vehicle as at Mar 31, 2015, is RM11,126.

“The total gratuity payable is RM345,926 and the highest percentage ratio of the gratuity is 0.46%.”

“During Mr Ong Fee Chong’s tenure as director, he was always being loyal, dedicated and committed in enabling Digistar Group to be well-positioned in facing the ever-changing environment and challenges to ensure continuing success of Digistar Group,” the company said.

One of Ong’s more notable past contributions is the listing of Digistar to ACE market and the transfer of the company’s listing to the Main Market of the local bourse.

“The gratuity payable will reduce the net earnings and net assets of Digistar Group by RM345,926 for the financial year ending Sept 31, 2015,” said Digistar, adding the gratuity payable is “fair and reasonable.”

Its counter closed unchanged at 22 sen today, translating into a market capitalisation of RM100.32 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)