Thursday 28 Mar 2024
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KUALA LUMPUR: Shareholders of HB Global Ltd, which is in the midst of regulating its financial condition, have declined to grant its board of directors the authority to do conduct private share placement exercises.

In an announcement to Bursa Malaysia, HB Global said that all the resolutions were passed at the company’s Annual General Meeting in Johor Bahru last Friday, except for resolution number seven.

The proposed ordinary resolution 7, is to empower the directors to issue and allot shares up to an amount not exceeding 10% of the issued share capital of HB Global for the time being for such purposes as the directors consider would be in the best interest of the company, according to its latest annual report.

“The general mandate will provide flexibility to the company for any possible fund raising activities, including but not limited to further placing of shares, for the purpose of funding future investment project(s) workings capital and/or acquisition,” explained the Chinese-based frozen food manufacturer in the annual report.

While the proposal for the private placement was shot down, three directors, namely executive director Meng Xiangzhen and independent-non executive directors Yang Chin Shen and Wong Tat Loong, were re-elected at the shareholder meeting.

HB Global’s controlling shareholder is Hengbao Foodstuffs Holdings Ltd with an equity stake of 57.09%. Other shareholders are Agro Treasures Sdn Bhd---an investment fund in which Khazanah Nasional has invested---holding a 10.43% shareholding while Masterskill Education Group Bhd’s major shareholder Siva Kumar Jeyapalan owns 3.42% of the company, as stated in the latest annual report.

HB Global’s share price has been on slippery downhill slope since the company announced that its former external auditor Paul Wan & Co issued a disclaimer on its accounts for the financial year for financial year ended Dec 31, 2012 (FY12).

The external auditor then claimed that it was unable to reconcile the bank balance of HB Global’s subsidiary, amounting to about RM130 million as well as a big chunk of the company’s trade receivables and trade payables. The company’s FY12 accounts were later verified in a special audit ordered by Bursa.

Ever since then, the company has been in the red. For the six months ended June 30, its net losses widened to RM9.52 million against RM308,000 in the previous corresponding period. Revenue shrunk to RM77 million from RM112.38 million in the corresponding period a year ago.

The company’s stock closed at seven sen last Friday, down 52% year to date. It once climbed to a historical high of 81 sen in early 2011, but the high was short lived.  

HB Global has seen a slew of changes at the board.

In April this year, two Independent non-executive directors Poh Seng Hiap and Ching Ling Team have resigned citing the reason of “other work and personal commitments which require their full attention”.

Poh was also the chairman of the company’s audit committee while Ching was a member of the audit committee. Poh took over as chairman of the audit committee from one Teo Choon Kow, who on Jan 20 resigned as independent non-executive director and chairman of the audit committee, also citing other work commitments.

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