Friday 01 Nov 2024
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This article first appeared in The Edge Malaysia Weekly on October 28, 2024 - November 3, 2024

The fortunes of Globetronics Technology Bhd (KL:GTRONIC) have changed quite drastically in the last two months.

One of the leading outsourced semiconductor assembly and test companies in the country, it used to boast institutional funds as its largest shareholders, but that is no longer the case.

As at March this year, the Employees Provident Fund and Lembaga Tabung Haji were the Penang-based company’s two largest shareholders, with the pension fund owning 13.3% and Tabung Haji 5.4%. Both funds sold down their shareholdings last month and are no longer substantial shareholders.

The selldown by the funds was reflected in Globetronics’ falling share price, and leaves Ooi Keng Thye and APB Resources Bhd (KL:APB) as the largest shareholders now. Both Ooi and APB Resources emerged as substantial shareholders in February, after buying the stake owned by the family of Ng Kweng Chong.

Apart from losing the institutional shareholders, Globetronics also saw the resignation of two directors, including its CEO, last week.

At the same time, the company has extended its financial year-end by three months to March 31, 2025.

The departure of CEO Heng Charng Yee comes as no surprise as she was part of the previous management under the Ng family. The resignation of Kang Wei Luen, however, was unexpected as he had joined the board only in February, about the time the new substantial shareholders emerged.

As for the change in the financial year-end to March, it is only to be expected as KPMG — Globetronics’ previous auditor — had resigned voluntarily last month. KPMG’s resignation caused a stir as the audit firm had been reappointed just four months earlier in May at the shareholders’ meeting.

Given the change in the financial year-end, Globetronics’ audited accounts will only be due next May, which should give its new auditor ample time to get the work done.

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