KUALA LUMPUR (Jan 5): The sudden changes in the boardroom, following the alleged illegal activities of the suspended directors, has sparked some uncertainty and speculation around Revenue Group Bhd, which saw its share price plunge by 28%.
The e-payment solution provider saw its stock price decline by 19 sen or 28.15% to close at 48.5 sen on Thursday (Jan 5), down from 67.5 sen a day earlier, giving it a market capitalization of RM232.15 million.
Revenue Group’s share price tanked after it said in a filing on Jan 5 afternoon that Brian Ng Shih Chiow and Dino Ng Shih Fang — the two co-founding executive directors who were suspended on Jan 4 — had allegedly seized documents belonging to the company illegally.
Revenue Group revealed that subsequent to the special board of directors’ meeting held on Jan 4 with regard to the suspension of the executive functions of Brian and Dino, who are siblings, the board of directors was made aware of an incident of illegal entry and seizure of documents and items belonging to the company by the two brothers.
“At approximately 4.25pm on the same day, the suspended executive director (Dino) Ng Shih Fang returned to the office premises with a group of approximately four unknown individuals.
“The unknown individuals were denied entry but forced their way into the office illegally. They also seized and carted away approximately 30 boxes of documents and items without the permission or clearance from the board of directors or the company.
“The company views this as an illegal forced entry and theft, and will lodge a police report on this matter,” said Revenue Group, adding that it has started investigations into the matter and will consult its legal adviser on the next course of action.
Revenue Group also stated categorically that “this act of forced entry and seizure is illegal and (the company) reserves all its legal rights to pursue this matter further”.
“The board of directors wishes to reiterate that its shareholders’ rights are of paramount importance and will use its best endeavour to ensure the shareholders’ rights, including those of minority shareholders, are protected,” it said.
In a separate filing, Revenue Group said Dino had disposed of 10 million or 6.39% of total issued warrants in two blocks of five million, at 15.84 sen and 7 sen respectively, on Jan 3. He still holds 8.48% of total issued warrants, whose price dropped 26.7% to 11 sen on Jan 5, down from 15 sen a day prior.
Meanwhile, Revenue Group had on Jan 5 evening announced the appointment of Danny Leong Kah Chern as the group’s new CEO. The 51-year-old is the former CEO of Cuscapi Bhd and GHL Systems Bhd.
At the same time, co-founding managing director and CEO Datuk Eddie Ng Chee Siong, was redesignated as the managing director-cum-alternate chairman of Revenue Group.
The executive functions of Brian and Dino, who co-founded the group with Eddie in 2003, were suspended on Jan 4 following “certain complaints” against the duo.
“Following information that [has] been brought to the board of directors’ attention, the board has arrived at the decision to suspend the two executive directors immediately pending investigation,” said Eddie in a statement on Jan 4.
The 50-year-old Brian is the company’s largest shareholder with 55.5 million shares or an 11.93% stake, followed by the 47-year-old Dino with 53.21 million shares (11.44%) and Eddie with 43.17 million shares (9.05%).
It should be noted that Eddie has no familial relationship with Brian and Dino.
Earlier on Jan 4, Revenue Group also announced the redesignation of the company’s non-executive chairman Nor Azzam Abdul Jalil to executive chairman, and the appointment of Tham Sai Cheong as an independent non-executive director.
Besides, Revenue Group had on Jan 3 appointed its former independent non-executive director Ooi Guan Hoe as the group’s new executive director.
The 48-year-old Ooi, who is also a director of Techbond Group Bhd and TCS Group Holdings Bhd, had resigned as the independent director of Revenue Group on Nov 11 last year “due to personal matters”.