KUALA LUMPUR (June 18): Tycoon Tan Sri Danny Tan Chee Sing, the founder and group executive vice chairman of Tropicana Corp Bhd, is stepping down from his role effective today.
Tan will pass the reins on to his son Datuk Dickson Tan, who is the deputy group chief executive officer (CEO), and group chief executive officer (CEO) Datuk Yau Kok Seng, who will be in charge of day-to-day operations.
Under Tan’s guidance, Tropicana has made its place among the top 10 property developers in Malaysia, with a record revenue of close to RM2 billion and total assets over RM7.2 billion as at FY14.
“I have turned 60 this year and after having dedicated more than three-and-a-half decades of my life to the business, it’s timely to pass the baton to the new generation of leadership,” said Tan in a statement today.
“Both Yau and Dickson have been instrumental in formulating and leading the transformation journey of the group. Together with the other board members and senior management team, I have full confidence that they can effectively lead Tropicana into greater heights,” Tan added.
Tan is still the controlling shareholder of Tropicana.
“While the board of directors respects Tan Sri Danny's decision to retire from an active corporate role in the company, we take comfort in the knowledge that we will continue to have his advice and guidance at all times, as we endeavour to take the Tropicana group to a higher level and in its position as a premier property developer in Malaysia,” said Tropicana chairman Tan Sri Rastam Mohd Isa in the statement.
Meanwhile, the group has streamlined its board which will see four out of 10 directors in Tropicana becoming independent non-executive directors.
The streamlining sees Tan's daughter Diana Tan Sheik Ni stepping down as the group's executive director, while Datuk Francis Ng Tian Sang and Datuk Seri Panglima Mohd Annuar Zaini have also retired as independent non-executive directors of Tropicana.
Meanwhile, the group has appointed Datuk Seri Mohamad Norza Zakaria as independent non-executive deputy chairman of Tropicana.
Norza had previously held high level positions with Bank Negara Malaysia, Petroliam Nasional Bhd, SPK-Sentosa Corp Bhd, Mun Loong Bhd and Gabungan Strategik Sdn Bhd.
Dion Tan Yong Chien, the third son of Tan, has been appointed as executive director.
Meanwhile, Datuk Larry Gan Nyap Liou will assume the role of senior independent non-executive director of Tropicana.
“With the new board composition, the group is expected to further strengthen its commitment of delivering innovative and quality products that enhances shareholders’ value,” said the group.
Tropicana reported a net profit of RM333.94 million for its financial year ended Dec 31, 2014, up 1.8% from RM378.37 million the previous year; while revenue jumped 34% to RM1.97 million, from RM1.48 million.
Tropicana (fundamental: 1.3; valuation: 2.1) shares closed 1 sen or 0.98% higher at RM1.03 today, for a market capitalisation of RM1.45 billion.
(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.)