RAHMAN Hydraulic Tin Bhd shareholders yesterday rejected a resolution to ratify the group's acquisition of a 19.02% stake in Kuala Lumpur Industries Bhd (KLIH).
They also voted against the purchase of Bangunan Bee Hin by the group's wholly-owned subsidiary, Exaland Corp Sdn Bhd.
Rahman Hydraulic's special administrator-appointed chairman, Ganesan Sundaraj, said the first resolution was unanimously rejected and the second by majority vote.
It is the will of the members (shareholders), he told reporters after the hour-long EGM in Petaling Jaya.
Ganesan said the shareholders had concluded that the transactions were not in the best interest of the company.
With the rejection, Rahman Hydraulic would have to take all remedial action and inform the KLSE and the investing public as soon as possible, he said.
However, it is still premature to reveal further details on the next course of action, he added.
Financially-troubled Rahman Hydraulic and KLIH have both been placed under special administrators.
Rahman Hydraulic first announced on July 28, 1997, that it had acquired 56.07 million shares representing 18.45% in KLIH. Subsequently, over a six-month period, it acquired an additional 1.77 million KLIH shares in the open market.
Meanwhile, Exaland signed a sale and purchase agreement with KLIH subsidiary Bee Hin on Dec 3, 1997, to acquire Bangunan Bee Hin, a six-storey commercial building, for RM6.5mil, but the price was later revised to RM4.5mil.
A Rahman Hydraulic shareholder who declined to be named alleged yesterday that there was a lack of transparency in the company's circular to shareholders in relation to both transactions.
There is no transparency as the circular failed to disclose who the vendors were. We are talking of several million shares here, he said.
The company in its circular also did not identify the two financial institutions that were the main lender and co-lender for the RM250mil to finance the acquisition of the KLIH shares, he added.
Earlier, when asked to comment on the listing status of Rahman Hydraulic, Ganesan said: The transfer of Rahman Hydraulic's listing to IJM Plantations Sdn Bhd is expected to be completed by the end of this year.
Last year, IJM Corp Bhd had proposed that its unit IJM Plantations Sdn Bhd take over the listing status of Rahman Hydraulic for about RM27mil.
Rahman Hydraulic would be paid RM25mil in cash to partially settle its debts, and its shareholders would be issued new IJM Plantations shares worth a minimum RM1.94mil.
After completion of the exercise, IJM Plantations would be listed in place of Rahman Hydraulic on the KLSE main board.
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