This article first appeared in The Edge Malaysia Weekly on May 8, 2023 - May 14, 2023

It is perplexing that the substantial shareholder of Bahvest Resources Bhd is seeking compensation from the company for supposedly trespassing into a concession area that he privately owns.

The substantial shareholder is Datuk Lo Fui Ming, who owns 16.01% of the company. He is also managing director and chief executive of Bahvest. Lo, together with another Bahvest shareholder Mohd Amir Masry, controls Southsea Gold Sdn Bhd (SGSB), which owns close to 1,000ha of a mining concession in Sabah.

Bahvest, through its wholly-owned subsidiary Wullersdorf Resources Sdn Bhd, holds a 33-year lease for 317.7ha of SGSB’s concession area. In fact, the company had acquired Wullersdorf from Lo, Mohd Amir and another individual for RM95 million in 2015.

The acquisition was funded through equity, which resulted in Lo becoming the controlling shareholder of Bahvest. He was also handed the day-to-day management of the company.

Now, SGSB is seeking RM20.4 million from Wullersdorf for allegedly trespassing on the land. The company’s notice of demand is perplexing as Lo is a common shareholder in both SGSB and Wullersdorf. Why couldn’t he have settled the matter amicably?

The notice of demand comes just as Bahvest has been asked to convene an extraordinary general meeting (EGM) to remove Lo and four other directors from the board, a request made by a group of shareholders who own more than 10% of the company.

Lo told The Edge that he was confident of winning the support of shareholders. It does not seem to be the case. In the latest announcement, Mohd Amir and Lo’s son, Lo Teck Yong, had disposed of their stakes in Bahvest.

Among those seeking the ouster of Lo and the other directors is Datuk Freddy Lim, a seasoned hand on the Sabah corporate scene. Better known as Freddy, he is not known for going into a corporate battle without first having done his homework.

Bahvest has stated that it will release the list of shareholders for the EGM to be held. That is good as an EGM is the best way to resolve the problems at the company.

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