KUALA LUMPUR (Nov 1): The executive chairman of Globetronics Technology Bhd (KL:GTRONIC), Kent Liaw Way Gian, has resigned from the board of APB Resources Bhd (KL:APB), whose shares tanked shortly after Globetronics experienced heavy sell-down in September following the resignation of its external auditor.
Liaw's resignation as executive director of APB Resources, which took immediate effect, was due to "personal reason and other commitments", the design process equipment maker said in a Friday bourse filing.
Liaw was appointed to APB Resources' board in June 2023. He joined Globetronics’ board a week after APB Resources announced it had emerged as the second-largest shareholder of the Penang-based semiconductor firm on Feb 15 this year after buying 70 million shares or a 10.36% stake in the company for RM140 million or RM2 apiece.
He also currently sits on the board of Sarawak Consolidated Industries Bhd (KL:SCIB) and Artroniq Bhd (KL:ARTRONIQ).
APB Resources succumbed to selling pressure in September as Globetronics tumbled after announcing that its external auditor KPMG PLT had resigned, losing nearly 72% in a month. That announcement was followed soon after by the ceasing of both the Employees Provident Fund and Lembaga Tabung Haji as Globetronics' substantial shareholders.
APB Resources, which has yet to recover, is down 84.67% year to date, closing at 39 sen on Friday — a level not seen since November 2020. Its latest share price gives it a market capitalisation of RM43.46 million.
Globetronics, meanwhile, closed at 50.5 sen on Friday, which translates to a paper loss of RM105 million for APB Resources. The stock, which has dropped nearly 69% to date, now has a market value of RM341.07 million.
Liaw previously told The Edge that the sell-off at Globetronics was triggered by investors associating the group with the fate of Serba Dinamik Bhd — which ran into muddy waters in May 2021 after KPMG, which was its external auditor then, flagged discrepancies in its books amounting to at least RM3.5 billion. That led to investigations by the authorities and several executives being arrested and charged for providing false information in its financial statements.
The saga, which saw KPMG resigning from its post, culminated in the delisting of Serba Dinamik in June this year after the loss-making company failed to submit its plan to regularise its Practice Note 17 condition for financially distressed companies.
The cessation of institutional funds as substantial shareholders in Globetronics was "understandable" following the company's guidance of lower dividend ahead due to the company’s need to enter a new capital expenditure cycle, but the market sell-down was sharper than expected, Liaw was reported as saying.
In the last five years, Globetronics’ dividend payout ratio ranged from 88.3% to 112.3%.
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