This article first appeared in The Edge Financial Daily on April 18, 2019

KUALA LUMPUR: Seacera Group Bhd chairman Datuk Seri Mansor Masikon yesterday adjourned the company’s extraordinary general meeting (EGM), during which the board was to seek shareholders’ approval for a proposed capitalisation and a private placement.

However, the company’s single largest shareholder, Datuk Tan Wei Lian, who holds a 16% stake, insists that the EGM had taken place and the majority of the shareholders present had voted against the proposals.

Tan called for a press conference yesterday to announce that the EGM was duly convened and 51% of the shareholders present voted against the proposals which entail the issue of 126.3 million new shares for placement at 21 sen per share to raise RM24.6 million.

Tan said on the shareholders’ request, his sister Shirley Tan was appointed the meeting chairman to proceed and convene the EGM.

Shirley is the managing director of Tiger Synergy Bhd, in which Tan controls a 19.5% stake.

Tan claimed that all of the shareholders present yesterday, representing some 240 million shares (51%), had voted against the two proposed exercises.

Given that, Tan is now planning to go to court to seek a declaration that the EGM convened was valid.

“Our lawyer is preparing the cause papers as soon as possible,” he told the press.

Furthermore, he is planning to convene another EGM on May 15 to remove eight of  the 10 directors.

Tan said he had served an EGM notice to the company on Monday which has yet to be announced on Bursa Malaysia.

He intends to appoint six new directors to Seacera’s board. But he is not seeking appointment as a director.

Tan noted that the non-executive chairman Datuk Seri Mansor Masikon and managing director Zulkarnin Ariffin will retain their positions in the company.

Currently, Mansor owns 0.36% equity interest in the company while Zulkarnin holds a 0.233% indirect stake.

Tan disclosed that he wants to raise his stake in Seacera to 20%.

“I don’t know if you are going to believe me or not, but I never intended to buy so many shares in Seacera.

“I started to buy because the stock was so cheap. But after I found out that I had unintentionally become a substantial shareholder, I felt that I should have a few board representatives to protect my interests,” he said.

Seacera’s share price has been on the decline since May, 2017 when it hit its height of RM1.61. It drifted down to 15.5 sen — the lowest level since November 2009.

Tan emerged as a substantial shareholder in February.

When asked if he has any plan to merge Tiger Synergy and Seacera, he said there is no such plan.

Seacera’s attraction is its 501-acre (202.75ha) land in Semenyih. Tan said he plans to launch a project there this year, to be developed over five years.

Seacera’s share price closed 1.5 sen higher at 34 sen after 36.77 million shares were traded, giving it a market capitalisation of RM161.3 million.