KUALA LUMPUR (May 20): Bright Packaging Industry Bhd’s (KL:BRIGHT) largest shareholder Datuk Ricky Wong Shee Kai, who has been embroiled in a legal battle with the Securities Commission Malaysia (SC), has trimmed his stake in the company after selling 20 million shares or 9.74% stake in the company.
In a bourse filing on Monday, the aluminium foil packaging materials manufacturer said Wong had offloaded the stake last Friday (May 17). Post-disposal, Wong is left with an indirect stake of 23.2% or 47.63 million shares in the company, via Wong SK Holdings Sdn Bhd.
The group did not reveal the transaction costs. Based on the group’s closing price of 20.5 sen on May 17, the sale of shares is estimated to be worth RM4.1 million.
Meanwhile, Datai Holdings Pte Ltd emerged as the group’s new substantial shareholder after it acquired the 20 million shares.
In May 2023, Bright Packaging announced a planned diversification into oil palm plantations to ensure sustainable income. This came after the group announced its planned joint venture with Datai Plantations Sdn Bhd, a unit of Datai Holdings.
Back then, Bright Packaging said it intend to invest RM5.3 million to develop an oil palm plantation, along with facilities and ancillary services, including palm oil mills, on 1,921 hectares of land.
Wong, who is currently at large in an undisclosed location, is one of the defendants in a civil action brought by the SC on May 5, 2020, for allegedly contravening the Capital Markets and Services Act 2007, in using devices, schemes or artifices to defraud Bright Packaging and/or engaging in acts, practices or courses of business which operated as a fraud upon BPI.
Wong, his mother Teh Sew Wan and Wong SK Holdings Sdn Bhd were alleged to have siphoned approximately RM56 million from Bright Packaging via a series of corporate exercises between 2013 and 2015, comprising a rights issue, a private placement and two rounds of an employee share option scheme (ESOS).
Wong and Teh are directors of Wong SK Holdings.
The SC in its investigation also found that the monies from each exercise were transferred from Bright Packaging via layers of these nominee companies, which ultimately ended up in either Wong’s bank account or Wong SK Holdings' bank account.
Wong, who was formerly the managing director of Asia Media Group Bhd, has left the country since 2021. The SC had issued warrants for his arrest.
In November 2023, The SC sought to forfeit Wong’s property and shares in Bright Packaging. Wong's property, which is located near the Kuala Lumpur city centre, is said to be worth more than RM20 million.
Early this month, the Federal Court unanimously dismissed an application by Wong for leave to appeal the High Court’s decision for him to attend civil court proceedings in person.
Bright Packaging's share price closed unchanged at 20.5 sen, bringing the group a market capitalisation of RM42 million.
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