This article first appeared in The Edge Malaysia Weekly on October 25, 2021 - October 31, 2021

Even though Kuo Jen-Hao emerged as the single largest shareholder of Mudajaya Group Bhd in 2019, there were doubts whether the Taiwanese businessman was really in control of the company.

This is because Mudajaya has long been known as the construction and engineering unit of the Lee family of Mulpha group.

But a recently completed rights issue raising close to RM150 million has firmly cemented Kuo, also known as Jerry Kuo, at the helm of the company. Post the rights issue, Kuo has emerged as the 51% shareholder of the company.

Based on filings, the Lee family are no longer substantial shareholders of Mudajaya and their interest has dropped below the 5% threshold level. Prior to the renounceable rights issue, the Lee family — namely Lee Seng Huang and Lee Ming Tee — used to hold about 7%.

Apart from the 7%, it is believed that the Lee family indirectly controlled another 20% of Mudajaya through private companies.

Kuo’s entry into Mudajaya in 2019 came about when the management team disposed of their interest in the company.

At that time, the management team, led by Ng Yin Loong, held about 25% in Mudajaya. The company was also going through an upheaval as it was getting hit from all sides.

The change in government in 2018 forced a major cost revision in infrastructure projects. This impacted Mudajaya’s construction works, causing delays and cost overruns. Its power plant in India was going through a debt restructuring, burning a hole in its balance sheet.

Mudajaya recorded losses in the last two years.

Now, the domestic construction sector is more stable while Mudajaya has found a new revenue stream in renewable energy. The debt restructuring of the Indian power plant is also over.

Following the completion of the rights issue with warrants, Mudajaya is sitting on cash that should give it the financial muscle to look for new ventures. It has two solar power plants in Perak and is looking to expand its renewable energy business.

It looks like a new beginning for Mudajaya.

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