Datuk Tee Eng Ho, the common shareholder in both companies is the new executive chairman of E&O.
The companies saw several other changes in their boardrooms effective yesterday.
“KPGB is good in value engineering and can help developers solve a lot of problems. Developers can be more cost-efficient and buildings can be of better quality. All the experiences can be shared with E&O, ” Eng Ho told a press conference yesterday.
Eng Ho has an effective stake of 55.2% in E&O through Amazing Parade Sdn Bhd.
He has been a non-executive director since his appointment to the E&O board in June 2017, the company said in a statement yesterday.He will be re-designated as a non-executive chairman in KPGB and would continue to lead and guide the board in the construction services company.
He was previously the executive chairman of KPGB.
Eng Ho said there are no immediate plans to merge both companies but did not rule out the possibility of this happening in the longer term.
“E&O will still be a pure developer but possibly, in five to10 years a merger can happen, nobody knows, ” Eng Ho said.
Commenting on how he would divide his time between the two companies, Eng Ho said: “I would spend most of my time in E&O from now on and I have built up KPGB, but I won’t forget KPGB.”
KPGB had yesterday also announced the appointment of Tee Eng Tiong as its chief executive officer and executive director.
Eng Tiong is Eng Ho’s younger brother.
“Eng Tiong has been groomed by me since the mid-1990s. I believe he can lead KPGB while I can share my experiences in my capacity to also guide the group moving forward, ” Eng Ho said.
KPGB had also appointed two new board members and announced the resignation of two board members effective yesterday.
Maylee Gan Suat Lee and Chan Kam Chiew had both been appointed as KPGB’s independent non-executive director while Khoo Siong Kee and Lim Kien Lai have resigned as non-executive directors.
At E&O, three new independent directors have been appointed while six existing board members have resigned.
E&O had seen the appointment of Khoo Siong Kee, Lim Kien Lai @Lim Kean Lai and Tee Bee Kim as its independent non-executive directors.
While E&O’s previous non-executive chairman Datuk Azizan Abd Rahman resigned along with other directors: Kok Meng Chow, Kamil Ahmad Merican, Tan Sri Mohd Bakke Salleh, Datuk Vijeyaratnam V. Thamotharam Pillay, Datuk Christopher Martin Boyd and Tan Kar Leng @Chen Kar Leng.
Eng Ho, had through Amazing Parade, acquired an additional 10.89% stake in E&O from Sime Darby Bhd for RM93.5mil, or 60 sen a share at the end of March.
Eng Ho reiterated his intention to keep E&O listed pursuant to the block acquisition that had triggered a conditional mandatory general offer (MGO).
Following of a number of acceptances of the conditional MGO by other shareholders, Tee’s stake in E&O is now at 55.2%.
E&O’s founder Datuk Seri Tham Ka Hon and Kok Tuck Cheong will continue in their roles as executive deputy chairman and managing director in the property developer respectively, the company said in its statement.
“Tham is staying in London so he will concentrate on E&O Hotel to build it up. I believe the London market will be coming back very soon once Covid-19 is under control, ” Eng Ho said.