KUALA LUMPUR: Lysaght Galvanized Steel Bhd managing director Liew Hoi Foo, who was said to be in a family feud with his sister-in-law Chew Meu Jong in gaining control of the company, was re-elected to the board at yesterday’s annual general meeting (AGM). 

In an unexpected move, the company’s largest shareholder Lysaght (Malaysia) Sdn Bhd (LMSB), controlled by Meu Jong, voted to retain Liew as a board member in the company. LMSB owns a 55.14% stake in Lysaght. 

The poll results showed that Liew’s reappointment was voted for by shareholders holding 99.69% of the shares, voting in person or via proxy. 

After the AGM, Meu Jong issued a statement to refute rumours that Lysaght is embroiled in a shareholder tussle, adding that differing views are healthy in any successful business. “As some would like to feed on the perceptions of power struggle and family feud, this is a non-event,” the statement said. 

Interestingly, Meu Jong’s statement noted that the board would help Liew to find a “suitable candidate on his succession plan” and wants him to pass his experience, knowledge and expertise to his understudy whom he would nurture for this task.

It is understood that Liew’s term as managing director ends by year end.

Speaking to the media after the AGM, Liew declined to reveal if he is planning to pare down his shareholding in Lysaght and his plan to step down. 

He stressed that there would be no changes in the company following his re-election. “We will do our best [for] the company and the shareholders.”

Liew owns a 15.46% stake in Lysaght through Ingli Sdn Bhd. He also holds a 17.1% stake in LMSB via WTWT Sdn Bhd.

Over the years, the Chew and Liew families have collectively controlled more than 70% equity interest in Lysaght. LMSB is the largest shareholder with a 55.14% stake.

According to the Companies Commission of Malaysia (CCM), LMSB is 40%-owned by Chew Bros (M) Sdn Bhd, the private investment vehicle of the Chew family. 

Liew, however, is disappointed that Datuk Hamzah Hassan, who was Lysaght’s chairman, was not re-elected. “I feel disappointed [for Hamzah not being re-elected],” said Liew, adding that he was not aware of the reason behind it. Hamzah, 64, was appointed to the board on Aug 20, 2014.

When asked if he could work hand in hand with the new board, especially the two newly appointed directors, Liew said: “I never had an issue working with people.”

“We should meet with the new board soon. The board will chart the direction [of Lysaght] and the managing director will then execute,” he added.

Yesterday’s AGM saw two new members — Ee Beng Guan and Chua Tia Bon — appointed to the board. Currently, Lysaght has seven board members, including Liew and Meu Jong, who is the eldest daughter of the late founder of Lysaght, Chew Kar Heing.

To recap, Lysaght was in the limelight last year when Liew and Meu Jong had disagreements over proposed corporate exercises, including a share split and bonus issue.

As at March 31, 2015, Lysaght’s cash position stood at RM39.5 million, with retained profits of RM62.6 million. It generated revenue of RM65.2 million for the financial year ended December 2014 (FY14), with a net profit of RM11.2 million.

In the first quarter of FY15 ended March, the group’s net profit more than doubled to RM6.76 million, up from RM3.06 million a year ago, thanks to the gain from land sales in Bandar Sunway. Quarterly revenue grew 13% to RM17.03 million from RM15.08 million a year before.

This article first appeared in The Edge Financial Daily, on July 1, 2015.