Boardroom changes at Stone Master

by **Cals** Wed 06 Aug 2014, 01:03

Business & Markets 2014

Written by Shalini Kumar of theedgemalaysia.com

Tuesday, 05 August 2014 09:37

KUALA LUMPUR: Loss-making Stone Master Corp Bhd, whose share price has more than doubled in a month, saw a round of changes in its boardroom yesterday, and the cessation of its former managing director as a substantial shareholder.

According to filings with Bursa Malaysia yesterday, Stone Master’s non-executive director Chan Mung Bong had resigned effective Aug 1. Meanwhile, Datuk Eii Ching Siew has been appointed as chairman and executive director of the company while Lee Fong Yin has been appointed executive deputy chairman.

The filings also show that the tile and stone product manufacturer’s former managing director (MD), Ng Kay Kim, has ceased to be a substantial shareholder in the company, following the sale of 100,000 shares at 78.5 sen — leaving him with a direct interest of 0.21%.

Ng had relinquished his position as MD in May this year, shortly after the emergence of Datuk Tan Wei Lian as a substantial shareholder in Stone Master.

Stone Master’s stock had seen a sudden rally since July 8, more than doubling from 35.5 sen to end at 76 sen yesterday, bringing its market capitalisation to RM35.1 million.

The company’s sudden share price run had prompted an unusual market activity query from Bursa. Stone Master replied that it was not aware of any reasons for the spike in its share price.

The share price surge had raised eyebrows considering that the company has been loss making since financial year ended Sept 30, 2006 (FY06). For the six months ended March 31, 2014, Stone Master posted a net loss of RM815,000 compared with a loss of RM1.31 million in the corresponding period a year ago. Revenue was slightly higher at RM39.9 million against RM32 million earlier.

Tan has been steadily increasing his equity interest in the company ever since he first surfaced as a substantial shareholder with a 5.17% equity interest in April this year.

As at Aug 1, Tan held 4.6 million shares or a 9.86% stake in Stone Master.

Tan is also MD of Tiger Synergy Bhd, in which he held a 9.41% direct interest and 3.53% indirectly, as at Nov 18, 2013.

In 2012, Tan found himself in the middle of a boardroom tussle when Tiger Synergy’s new substantial shareholders planned to call for an extraordinary general meeting (EGM) to remove Tiger Synergy’s existing board of directors, including him.

The shareholders who were believed to be acting in concert included the former chairman of automaker Proton Holdings Bhd, Datuk Seri Mohd Nadzmi Mohd Salleh (pic), and former Umno treasurer Datuk Seri Abdul Azim Mohd Zabidi.

It was said that Mohd Nadzmi planned to inject land into Tiger Synergy, which has a property development arm.

However, Mohd Nadzmi exited Tiger Synergy in May last year, after accumulating a stake of 14.18%. Tan and his two sisters upped their stakeholding in Tiger Synergy when the new shareholders wanted to remove the board.

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This article first appeared in The Edge Financial Daily, on August 5, 2014.[/size]