KUALA LUMPUR (Oct 15): Lysaght Galvanized Steel Bhd fell 30 sen or 8.1% to RM3.40 before market break today, with 145,400 shares changing hand.
The low-profile galvanised steel products manufacturer had announced yesterday that a corporate representative from its controlling shareholder Lysaght (Malaysia) Sdn Bhd (LMSB) has been authorised and directed to vote against any resolutions, with or without amendments, in relation to the company’s proposed share split, bonus issue, and issue of free warrants.
“The board will meet to deliberate on the above and the next course of action to be taken and a further announcement will be made in due course,” Lysaght had said in its filing to Bursa Malaysia.
TheEdge Markets.com reported last night that the announcement had seemed bewildering as corporate exercises like share split, bonus issue and issue of free warrants are meant to reward all shareholders.
It also noted that LMSB, which is the single-largest shareholder of Lysaght with a 55.14% stake, and Ingli Sdn Bhd (with a 15.46% stake) are both controlled by the same founding family of Lysaght.
Lysaght’s managing director is Liew Hoi Foo, who is the son-in-law of Lysaght’s founder, the late Chew Kar Heing and Lim Lee Kuan; the latter is still a director. Through LMSB and Ingli, the Chew family and Liew collectively owns more than 70% of Lysaght.
Meanwhile, the company had also revealed yesterday that it was not able to meet the given timeframe for the submission of the company’s draft circular and documents pertaining to the proposed share split and bonus issue to the local bourse, and had applied to the bourse on Oct 13 to extend the submission to Oct 31.