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KAJANG (June 19): Apex Equity Holdings Bhd’s single largest shareholders Fun Sheung Development Ltd has failed in its attempt to appoint three directors to the board despite owning 15.78% stake.
Fun Sheung’s nomination of three directors — namely Quintin Jeyaraj Vello, Lim Tian Huat and Hong Kim Heong — received 45% of shareholders’ support here at the group’s annual general meeting, while 55% voted against.
Fun Sheung was among a few other substantial shareholders in Apex controlled by the late Lim Siew Kim — daughter of Genting group founder Tan Sri Lim Goh Tong — prior to her passing last year.
These companies, including Fun Sheung, Yenson Investments Ltd, Pinerains Sdn Bhd and Cergas Megah Sdn Bhd, are estimated to collectively hold about 32.28% shareholdings in Apex.
Meanwhile, incumbent directors who offered themselves for re-election received 55% of support from shareholders here on Monday (June 19) while 45% of them voted against.
Those re-elected were group executive chairman Farhash Wafa Salvador, executive directors Datuk Leong Wai Leng, Lim Kok Eng, independent non-executive directors Woon Wai En and Rozana Shamsuddin.
Speaking to The Edge after the AGM on Monday, executive director Lim Kok Eng said management’s focus going forward is on sustaining the group’s profitability amid ongoing competitive market conditions.
“Now we have the executive directors who actually [are capable of] managing the company, to provide leadership and direction for the company,” he said when asked about the group’s leadership void since the passing of founder Chan Guan Seng in 2018.
Kok Eng also maintains that the current board of directors are independent from Apex former shareholder ACE Group.
“I think it is quite clear that we are independent, because in the current AGM, new shareholders also voted us in, that [connection with ACE Group] was our past,” he said.
Apex AGM on Monday is the first following Siew Kim’s death and exit of ACE Group after the divestment of its stake in the open market, followed by the emergence of two active corporate players in its top 30 largest shareholders – Datuk Seri Jacky Pang Chow Huat of Sanichi Technology Bhd and Datuk Eddie Ong Choo Meng of Hextar Group.
In mid-December last year, ACE Credit (M) Sdn Bhd, a part of the ACE Group, had disposed of the bulk of its stake in Apex Equity, days after the Securities Commission Malaysia (SC) went to court to block ACE Credit from taking control of Apex Equity. ACE Credit had on Dec 9 ceased to be a substantial shareholder in Apex Equity after disposing a 13.34% stake, in the open market.
The new and notable Apex Equity shareholders, namely the Hextar family members and their business associates, Pang and his associates, and Proven Venture Capital, controlled 18.58% of Apex Equity as at end-March.
With sufficient shareholders’ backing, Kok Eng said Apex's main challenge today is addressing market competition.
“Our competitors are offering between five to eight basis points [of brokerage fee]. Our is 10 basis points; it is going to be very challenging,” he said.
Therefore, Kok Eng said Apex will not be competing with peers in terms of near-to-zero brokerage fee, but will instead focus on providing quality advisory to premium customers, while trying to develop robo-advisory for the mass market.
Apart from that, Kok Eng said Apex will also conduct rebranding activities to provide a fresh market image to customers, while expanding its market presence beyond its five branches in Malaysia currently.
“Currently we are in Kajang, Petaling Jaya, Penang, Johor Bahru and Puchong, we hope to establish presence in another five cities and grow our team of remisiers to over 100 next year. Today we have about 80 remisiers,” he said.