KUALA LUMPUR (Jan 15): MGB Bhd, a subsidiary of LBS Bina Group Bhd, has promoted its executive vice chairman, Tan Sri Lim Hock San, to group executive chairman with effect from Monday.
Lim, 66, succeeds Datuk Abdul Majit Ahmad Khan, 78, who has resigned as the group’s independent and non-executive chairman. He was appointed to the position in August 2014.
In a bourse filing, MGB said Abdul Majit's resignation is in adherence to the Malaysian Code on Corporate Governance and the board charter of the company, which stipulates that the tenure of an independent director should be limited to nine years.
The construction and property company said Lim holds a 58.65% indirect stake in the company via LBS Bina, besides a 0.201% direct stake in the company.
Lim is also the group executive chairman of LBS Bina, in which he holds an indirect interest of 37.21% and a direct interest of 2.36%.
Meanwhile, MGB has also appointed Nor Salinun Mohd Ghazali as its independent and non-executive director. Salinun boasts over 25 years of expertise as a human resources professional, the company said.
In a statement, Lim said the group is cautiously optimistic of economic factors affecting the world and Malaysia in 2024.
"Nonetheless, we persist in seeking opportunities while simultaneously enhancing our services provided through experience, innovation, digitalisation and technological advancements, exemplified by our industrialised building system (IBS) precast concrete products. This strategy is aimed at ensuring that MGB remains competitive and adaptable to any business environment," Lim added.
LBS Bina bought a 21.92% stake in MGB Bhd (then known as VTI Vintage Bhd) in July 2014. In April 2016, LBS Bina exceeded the mandatory takeover threshold after raising its stake to 50.93% from 31.95%. In September 2016, LBS injected its 75% equity interest in MITC Engineering Sdn Bhd into MGB — to streamline its construction business under MGB — for a consideration of RM225 million.
MGB's shares price closed up 1.5 sen or 2.29% to 67 sen, bringing the company a market capitalisation of RM396 million. LBS Bina also settled two sen or 3.28% higher at 63 sen, valuing the company at RM989 million.