Tanjung Offshore pledges cooperation with regulators on probe

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KUALA LUMPUR: Tanjung Offshore Bhd executive director (ED) Tan Sri Tan Kean Soon said the company will work closely with regulatory bodies and institutions on the ongoing investigations arising from the independent committee (IC) findings. The IC findings were submitted to Bursa Securities, the Securities Commission Malaysia and the police in late January.

Kean Soon, who was redesignated as the company’s ED (from non-ED) on Monday, said in a statement yesterday that he will work closely with the newly-appointed special auditor, Ferrier Hodgson MH Sdn Bhd, to conduct a forensic audit and address the list of questions and issues raised.

He said he would ensure the results are disclosed publicly and quickly. Moving forward, Kean Soon noted that Tanjung Offshore (fundamental: 1.85; valuation: 0.60) plans to review several matters, including the possibility of implementing a dividend policy to reward shareholders.

“The board is also considering to invite Lembaga Tabung Haji, the company’s second-largest shareholder, to sit on the board.”

Kean Soon is the third-largest shareholder of Tanjung Offshore, with a 7.58% stake, after its chief executive officer Rahmandin Shamsudin’s 9.99% holdings, and Lembaga Tabung Haji’s 7.99% equity interest. “All shareholders can expect a transparent and accountable board which will endeavour to provide the best returns in these challenging times for the oil and gas industry,” he said. In the past two days, Tanjung Offshore has withdrawn all lawsuits against Kean Soon and related parties. This follows the lifting of the suspension of Kean Soon’s and two other officers’ roles on Monday.

Kean Soon and two shareholders had also called off an extraordinary general meeting that was slated for today.

Tanjung Offshore shares closed unchanged at 51.5 sen yesterday, giving it a market capitalisation of RM195.22 million.

 

This article first appeared in The Edge Financial Daily, on March 27, 2015.