Thursday 28 Mar 2024
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KUALA LUMPUR (March 18): Tanjung Offshore Bhd shares shed  as much 1.5 sen, or 2.97%, to 50.5 sen in morning trades after minority shareholders lodged a police report alleging irregularities in the company’s disclosures to Bursa Malaysia.

However, at 10.17am, the stock pared down its loss to reach 52.5 sen, down 1.87%. A total of 188,500 shares changed hands, for a market capitalisation of RM195.22 million.

The Edge Financial Daily reported today that a group of 23 minority shareholders of Tanjung Offshore (fundamental: 1.85; valuation: 0.6) had filed a police report on March 12 over the company’s filings with Bursa Malaysia in March 2014 and January 2015 regarding a £6.7 million deal with United Kingdom’s Cross Space Securities Limited to acquire full ownership of Wavenet Investments Ltd (UK).

Wavenet owned Sparkling Light Investments Ltd (UK), which in turn owned an eight-storey office building in the central business district of Birmigham.

The shareholders, who collectively hold more than 6% of the company’s shares, alleged irregularities in the disclosures of the deal, subsequently denying them of a vote over the company spending more than 25% of its net asset value on non-related business of property development.

Key findings of Tanjung Offshore’s independent committee filed with Bursa Malaysia on Jan 28 this year found the acquisition of the property at a cost of £6.7 million was separate to a refurbishment programme amounting to £4.8 million, occurring as two events at different times.

It said the refurbishment expenditure arose from a later decision to redevelop the building into a residential property.

The move by the minority shareholders is further development to Tanjung Offshore’s tussle among shareholders, with internal accusations of breach of fiduciary duty among others.

The company had formed an independent committee on Jan 8 this year to conduct an internal review following speculations about the company which were made public.

Following recommendations by the committee, directors Tan Sri Kean Soon and Muhammad Sabri Ab Ghani as well as paid adviser Datuk Harzani Azmi were suspended of their executive and adviser roles.


(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

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