KUALA LUMPUR: Could Datuk Ishak Ismail’s emergence as a major shareholder in Kenmark Industrial Co (M) Bhd also herald his return to prominence in the corporate arena? The name Ishak Ismail is synonymous with Idris Hydraulic (M) Bhd, a darling of retail investors in the early 1990s bull run.  

The Penang-born Universiti Malaya graduate entered the corporate scene in the early 1990s in leading a takeover of Idris Hydraulic that paved the way for the latter to undertake lucrative timber concessions in Sabah.

The former managing director of Idris Hydraulic had controlled several companies in a variety of sectors, ranging from forestry to retail, food and beverage, and property development. Ishak was also secretary of the Permatang Pauh Umno division, the stronghold of then deputy prime minister and now Opposition Leader Datuk Seri Anwar Ibrahim.

Idris Hydraulic held various timber concessions in Keningau, Sabah, which were collectively known as the Sagisan Concession, spread over 256,000ha. To leverage on its concessions, it had entered into a joint venture with Aokam Perdana Bhd in 1992, partnering Teh Soon Seng.

Once a darling among investors, Aokam Perdana’s shares rallied in the early 1990s as investors were drawn to the notion that the company earned abnormally high margins due to a cheap supply of logs from Idris’ concessions. However, that proved unsustainable, its shares crashed and the company went into financial difficulty.

Ishak also had stakes in Parit Perak Bhd, hypermarket chain Carrefour, and KFCH. Nonetheless, the 1997-98 Asian financial crisis dealt his impressive portfolio a massive blow. He lost Idris Hydraulic in a debt-restructuring exercise.

After surviving earlier tussles, Ishak then fought the Johor Corporation-controlled Kulim (M) Bhd for control of KFCH. In 2004, Kulim took control KFCH through QSR Brands Bhd.

As KFCH director, he was fined RM400,000 by the court in 2001 for submitting false information to the Securities Commission (SC), thereby resulting in him being barred from holding any directorship for five years.

In 2003, Ishak, as a director of Idris Hydraulic, was also compounded RM400,000 by the SC for misusing RM50 million of the proceeds raised from the disposal of Kewangan Bersatu Bhd and a court case against him was withdrawn.

For much of the last decade, Ishak has kept a relatively low profile. Could his re-emergence mark the start of an active return to the corporate scene?

This article appeared in The Edge Financial Daily, June 4, 2010.