AT the age of 34, Datuk Sean H’ng Chun Hsiang was already managing director and CEO of cable manufacturer Leader Universal Holdings Bhd, which ventured into power generation in 1997.

Seven years later, in October 2011, he initiated a RM410.9 million corporate exercise to take the company private at RM1.10 per share. The offer price was at a 31% premium over the market price of 84 sen.

H’ng recalls that taking Leader Universal private had not been easy but he believes it was a wise move. The company, which was renamed HNG Capital, has fared well in the last five years, as its power assets have started generating recurring earnings, he notes.

After the 1997 Asian financial crisis, Leader Universal faced financial problems and stagnant growth in its telecommunication and power cable manufacturing business. But H’ng was not giving up on the company as he saw bright prospects in the power plant projects that were being constructed in Cambodia.

However, the market did not appreciate the power assets, considering the low valuation of its stock. That presented a window of opportunity for H’ng to undertake the privatisation exercise.

In 2009, H’ng managed to secure a 30-year extension on its concession for the construction of Cambodia’s first coal-fired power plant on a build-operate-own basis. Fully managed by Cambodian Energy Ltd, the plant was put into commercial operation in December 2013. In January 2010, H’ng also secured a power transmission concession in Cambodia for 25 years. Put into commercial operation in August 2013, the plant is operated, maintained and managed entirely by Cambodian Transmission Ltd.

After the privatisation, H’ng undertook a slew of divestments, including that of Leader Cable Industry Bhd and Universal Cable (M) Bhd, to concentrate on the core business, power generation.

For the financial year ended Dec 31, 2015 (FY2015), HNG Capital posted a profit after tax of RM145.5 million on revenue of RM2.82 billion, compared with RM69.98 million and RM2.49 billion respectively in FY2010.

The figures speak well for the privatisation exercise.

Currently, H’ng is the single largest shareholder of HNG Capital, holding a 40% equity stake, while his father and sister hold 30% each.

His family was the single largest shareholder of Leader Universal but things have not been that easy for him. It’s an uphill task managing a family business that is almost as old as he is, he says. He needs to work with the board of directors, who have an archaic mindset.

“Some people say I’m born with a silver spoon in my mouth, but that’s not true ... People may say I’m lucky, but I have to resolve and manage a lot of old baggage, which is not easy,” says H’ng.

He had to overcome internal obstacles in order to execute his plans to steer HNG Capital in a new direction.

Although it is a family-owned company, H’ng still had to work his way from the very bottom. He quips that he had to fight to become CEO; he was appointed in 2004.

He acknowledges that it is difficult to run a family business when more members get involved in the business. He is trying to reduce the level of involvement to make the management of the business much simpler.

H’ng, a nominee for the master entrepreneur category, says he has to balance the interests of the company and the family.

Going forward, HNG Capital will continue to grow its power generation business. This year, it is investing about US$300 million in an extension of the concession for the coal-fired plant in Cambodia. Construction will commence next year and the plant is expected to start operating in 2019.

The company has also completed the acquisition of a few mini hydro plants with a total capacity of 50mw in Vietnam.

As the earnings generated from the power plants in Indochina have been on track, H’ng is now mulling over the listing of the assets in two to three years’ time. And that will probably be his next landmark deal.

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