KUALA LUMPUR (Nov 8): Metronic Global Bhd said its decision to reconsider its earlier intention to call for an extraordinary general meeting (EGM) to remove several directors on the board of MNC Wireless Bhd was to allow the latter's board to carry out its business expansion plans pursuant to its right issue.
"The company wishes to announce that in light of the recent rights issue with free warrants exercise carried out by MNC, which said rights and warrants are due to be listed on Nov 11, 2016, the board of directors had taken the commercial decision to reconsider its intention previously to call for an EGM for purposes of removal of directors, in order to allow the board of MNC to carry out its business expansion plans pursuant to the rights issue as announced by MNC," it said in a bourse filing today.
This is in line with its announcement yesterday to revoke calls for the EGM to remove the five directors of MNC Wireless, namely Wong Kok Seong, Christopher Tan Chor How, Pang Siaw Sian, Thu Soon Sien and Kua Khai Shyuan.
It, however, added that the board may reconsider similar proposals in the future in the event it considers expedient or necessary to do so accordingly.
As at Oct 4, Metronic Global was the largest shareholder of MNC Wireless with a direct stake of 18.75%.
To recap, Metronic Global sought the removal of the five directors in MNC Wireless, to be replaced by Nga Koo Koy, Eric Boon Chuan Kit, Ng Wee Peng, Tan Kian Hong and Raja Aida Jasmin Raja Shahrome, based on its filing in Oct 24.
Earlier, Metronic Global had filed an ex parte injunction order on Oct 7 against MNC Wireless shareholder Datuk Seri Dr Pang Chow Huat, Kua, Wong, Siaw Sian, Thu, Tan and the company, restraining them from taking any steps to implement a proposed rights issue.
The exercise also included an employee share option scheme, increase in the authorised share capital of MNC Wireless and amendments to the memorandum of association. The order also sought to restrain Pang from subscribing to the rights issue and employee share option scheme.
Metronic Global closed unchanged at 8 sen today for a market capitalisation of RM60.67 million, while MNC Wireless dipped 0.5 sen or 5.88% to settle at 8 sen for a market capitalisation of RM8.98 million,