KUALA LUMPUR (April 6): Classita Holdings Bhd was among the top three actively traded stocks in early trade on Thursday (April 6), following the recent announcement that the company has reached a financial settlement with its substantial shareholder and former executive vice-chairman.
At 11.06am, the stock had risen 5.5 sen or 39.29% to 19.5 sen, with 48.66 million shares done.
On Wednesday, the stock closed half a sen or 3.45% lower at 14 sen. At that price, the company was valued at RM47.68 million.
In an announcement on Wednesday, Classita stated that it had reached an agreement with its substantial shareholder Datuk Seri Tee Yam @ Koo Tee Yam and former executive vice-chairman Jessie Wong Siaw Puie over a RM3.96 million advance the latter provided to the loss-making Perak-based lingerie and apparel maker.
Classita, formerly known as Caely Holdings Bhd, said that the legal dispute between the parties was settled amicably, without admission of liability, and a consent judgement had been recorded.
A suit filed by Tee Yam and Wong in November last year claimed that they had advanced to Classita a total sum of about RM3.96 million for day-to-day operation and management costs.
However, Classita negotiated a settlement with the plaintiffs at the mutually agreed sum of RM3.30 million instead of the claimed amount of RM3.96 million, as its board of directors was satisfied that several advancements were received from the plaintiffs.
Meanwhile, the company shared its commitment to allocating all its available resources towards the efforts of recovering all monies believed to have been misappropriated from Classita, be it in current, ongoing or future legal actions.
Classita’s current board in October last year filed a civil suit against its founder Datin Fong Nyok Yoon, her husband Datuk Chuah Chin Lai and 10 others pertaining to alleged misappropriation of funds amounting to not less than RM30.55 million from the group’s subsidiary Caely (M) Sdn Bhd.
The company assured that its current board of directors will remain focused on strengthening the existing business to improve the group’s financial position.
“Besides the lingerie manufacturing business, the company is also working to revive the property development business with high-quality property development projects out of the bustling Klang Valley and any other business opportunities that arise,” said Classita executive chairman Ng Keok Chai.