THE board tussle between two rival factions for control of Sabah-based CepatWawasan Group Bhd intensified yesterday when a High Court injunction was served to the board to prevent the faction headed by Datuk Lo Fui Ming from exercising voting rights relating to a large number of shares, said to be between 10 million and 11 million or about 5% of the company's outstanding shares of 215.5 million.
Lo had earlier made a requisition for an EGM to consider proposals for the removal of Tan Sri Chan Kin Kong, Datuk Chua Tiong Moon and Chai Kim Chong as executive directors of Cepatwawasan to be replaced by Lo, Ouh Mee Lan and Chen Syn Fook.
A shareholder told reporters that the faction headed by Chan had obtained the injunction from the High Court in Seremban the day before to block the exercise of the voting rights by Lo and certain parties aligned to him.
Given the uncertainty, Cepatwawasan chairman Tengku Datuk Kamal Ibni Sultan Sir Abu Bakar called for the EGM to be adjourned to allow for the dispute to be settled.
“To continue with the EGM in the circumstances would unfairly prejudice members' interest or prematurely frustrate the collective will of members present,” the company said in announcement to Bursa Malaysia.
The company added that it would in due course inform Bursa Malaysia of the new date of the EGM.
Another interesting development was the emergence of Datuk Seri Tiong King Sing, the Bintulu MP who is also chief executive of Wijaya Global Bhd, a timber company, as a substantial shareholder of Cepatwawasan with 9% to 10% stake.
At this point it is unclear if Tiong is aligned to any of the factions but by virtue of his substantial stake, his vote will be significant in determining the outcome.
Cepatwawasan was amongst the top 10 traded stocks, closing at RM1.44 from RM1.40 the previous day on a volume of 9,955,000 shares.
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