KUALA LUMPUR (May 10): Bahvest Resources Bhd has announced that a temporary resolution had been agreed between Southsea Gold Sdn Bhd and its wholly-owned subsidiary Wullersdorf Resources Sdn Bhd, pertaining to the shareholders and boardroom tussles that it is facing.
The first part of the temporary resolution is for Wullersdorf to pay a non-refundable deposit of RM13 million in two tranches to commence negotiations relating to a final sum for compensation over the wrongful occupation of Southsea Gold’s land from September 2017 till April 2023.
The negotiation will also include a possible tenancy to continue Wullersdorf operations on Southsea Gold’s land, without prejudice to Southsea Gold claiming the full RM20.4 million. This came after Bahvest on May 3 received a letter of demand seeking RM20.4 million from Southsea Gold for the abovementioned alleged actions.
Southsea Gold is a firm linked to Bahvest’s substantial shareholder Datuk Lo Fui Ming.
Wullersdorf is required to remove its operations from Southsea Gold’s mining land, even though it had conducted gold mining activities on a piece of land in Tawau, Sabah since 2017, which it subleased within a larger mining land lease belonging to Southsea Gold.
Additionally, both parties will enter into good faith negotiations regarding renting the occupied lands to allow Wullersdorf and Bahvest to continue operations and the full amount of compensation for its wrongful occupation.
Pending the good faith negotiations, Southsea Gold has extended the 30 days’ deadline for Wullersdorf to vacate Southsea Gold’s land to 90 days from the date of the letter of demand.
“To this end, the management had engaged in discussions with Southsea Gold, culminating in the above temporary agreement. The company wishes to state that a permanent solution to this issue with Southsea Gold hinges on the outcome of the extraordinary general meeting and a possible incoming new management,” stated Bahvest in the exchange filing.
To recap, the letter of demand was received by Bahvest after five shareholders holding over 10% in Bahvest — Marlex Trading Ltd, Innosabah Capital Holdings Sdn Bhd, Datuk Lim Nyuk Sang @ Freddy Lim, Yong Fen Yoo and Chong Tzu Khen — were seeking to remove Fui Ming, and two other directors namely the non-executive chairman Datuk Seri Dr Md Kamal Bilal and executive director Lo Teck Yong, from Bahvest’s board on April 26.
The three directors are proposed to be replaced by Tzu Khen, Law Ngia Meng, and Chong Mee Fah @ Frederick Chong.
Southsea Gold is 75%-owned by Fui Ming, who had 16.09% of Bahvest but has since trimmed his stake to 13.18% after the series of events. Lo is also the managing director and chief executive officer of Bahvest.
His son, Teck Yong also disposed of shares and reduced his stake from 0.31% to 0.14%, while Md Kamal retained his shareholdings at 0.19%.
Another Bahvest shareholder Mohd Amir Masry, who controls Southsea Gold with Fui Ming, has also ceased to be a substantial shareholder of Bahvest from May 2. Mohd Amir, through Mab Ventures Sdn Bhd, dropped his indirect interest in Bahvest to 2.54% as on May 2, from a 5.37% stake previously.
Bahvest's shares on Wednesday dropped to as low as 9.5 sen before rebounding to close at 11.5 sen, bringing the group a market capitalisation of RM142.6 million.
Bahvest was also the day's most actively traded stock in Bursa Malaysia with 242.75 million shares changing hands.
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