KUALA LUMPUR: The boardroom tussle at OCI Bhd ended yesterday when shareholders voted for their white knights to join the board and remove the previous two directors.
The ousted directors, Wang Ching Sen (group managing director) and Liu Te-Chi (technical research director), did not show up at the EGM, resulting in shareholders appointing a temporary chairman to organise the meeting.
They then appointed the new directors, Anthony Wijoto and Low Kueck Shin, as proposed by OCI’s biggest shareholder, Contrarian Holdings Bhd.
OCI manufactures and distributes adhesives and sealants for the consumer and industrial markets. About 80% of its products are exported to 60 countries.
“When we attended the AGM in December, we were not optimistic of the management. We wanted to remove Wang and Liu because we felt they were not doing enough for the company.
“It's time to have a fresh management,” said Wijoto, who is also the current chief executive of Contrarian, after the EGM.
Except for Wang, who was group managing director, the rest of the senior management should still be around, he noted.
The new board’s priority now would be to submit a regularisation plan for OCI to the regulators.
“While the deadline has passed, we will now seek an extension, while at the same time, request that OCI shares be allowed to resume trading after Thursday (deadline for suspension),” Indonesian Wijoto said.
The earlier directors “did not do anything about the restructuring plan but they had blamed it on our presence,” he said.
“That’s not true because they did not even appoint any corporate advisor to advise on the restructuring plan,” he added.
Given that it was a hostile takeover, Contrarian did not conduct any due diligence on OCI prior to gaining control of the company.
“We’ve not seen OCI from the inside,” Wijoto said, adding that the new directors would visit the company's factories immediately after the meeting.
They were informed that the banks repossessed some machinery while some were removed without shareholders’ knowledge.
“It was astonishing when the workers told us that the factory was closed,” Wijoto said.
“After we have surveyed the damages, we will know how long it will take to revive OCI,” he said, adding that the company still had potential due to its brand, network and suppliers.
“We can (ride) piggyback on the network to introduce more products,” Wijoto said.
OCI’s problems were “minor” compared with other PN17 companies. Its biggest issue was lack of capital, which Contrarian would invest as much as needed to revive the company, Wijoto said.
He added that Contrarian would inject synergistic operations into OCI while maintaining the core businesses of chemicals, packaging and forwarding.
Wijoto is also the chief executive officer of Indonesia-based Putra Mandiri Group, which is involved in financial services, insurance, chemical industries, commercial properties, natural resources and minerals.
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