This article first appeared in The Edge Malaysia Weekly on December 23, 2024 - December 29, 2024

The voting pattern at Tomypak Holdings Bhd’s (KL:TOMYPAK) recent annual general meeting (AGM) clearly shows that a group of shareholders with about 88 million shares, representing 20% of the company, are at odds with the current management. The 20% block voted against all seven resolutions tabled during the AGM held last week. During the meeting, an independent director, who had served on the board since 2015, was not retained.

The other six resolutions were passed with an overwhelming majority, suggesting that the current management and board have the support of the majority of the shareholders.

A quick look at the shareholding of Tomypak, which produces packaging materials, shows that the largest shareholder is Yong Kwet On with 23.6%. Yong, who is the company’s chairman, holds his shares through New Orient Resources Sdn Bhd, which in turn is controlled by Pavillion Access Sdn Bhd.

Last week, a new shareholder, Loh Chin Yew, emerged as a substantial shareholder of Tomypak following his subscription of new shares in Pavillion Access.

The second largest block of shares in Tomypak, amounting to 19.89%, is held by Lim Hun Swee, the company’s former managing director, who stepped down in 2020. Lim was managing Tomypak’s operations.

Interestingly, Loh Chen Yook, who is believed to be the major shareholder of Karyon Industries Bhd (KL:KARYON), is among the top 30 shareholders of Tomypak. And one of the directors of Tomypak, Loh Chiun Yok, is also a board member of Karyon, which manufactures and distributes polymeric products.

Tomypak recorded a loss of RM22 million on a turnover of RM154 million for the financial period ended June 30, 2024 (FY2024). In FY2023, it registered a profit of RM89 million but the bottom line was boosted by “other income” of RM130 million.

The voting pattern, coupled with the company’s poor performance, points to the possibility of more surprises ahead at the packaging company.

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