KUALA LUMPUR (Jan 9): Target 1 Sdn Bhd, South Malaysia Industries Bhd’s (KL:SMI) largest shareholder with a 30.67% stake, announced on Thursday that the company’s extraordinary general meeting (EGM) proceeded as scheduled on Thursday, with the resolutions to appoint six new directors, including former Perak police chief Datuk Pahlawan Mior Faridalathrash Wahid, being passed.
In a statement, Target 1 said that shareholders voted in favour of the six resolutions to appoint the new directors, effective immediately, to the board of the property developer and wiring manufacturer.
Members present at the EGM by proxy, collectively holding a total of 105.08 million shares—representing 50.05% of SMI’s total issued shares of 209.94 million — voted in favor of all resolutions. This resulted in a 100% approval rate from the members, the statement read.
The EGM proceeded following the consent of the Securities Commission Malaysia (SC) in November last year, granting approval to Target 1 — controlled by Leong Seng Wui, executive director of Hong Seng Consolidated Bhd (KL:HONGSENG) and cash-strapped Revenue Group Bhd (KL:REVENUE) — to appoint these six individuals as directors of SMI under the Rules on Takeovers, Mergers, and Compulsory Acquisitions.
Other directors appointed to SMI’s board are She Pei Sze, Lee Keng Fatt, Datuk Sok One a/l Esen, Ho Pui Hold, and Leong Weng Loong.
“The newly appointed directors bring a wealth of experience and expertise, promising to ensure proper corporate governance and oversight of SMI and safeguarding the interest of all shareholders especially those of other minority shareholders,” the statement read.
Earlier this week, Target 1 announced that the SC had approved a further extension for the dispatch of its offer document to SMI shareholders. The extension allows Target 1, and the parties acting in concert, to deliver the mandatory takeover offer documentation by Jan 14 — an extension of seven days from the previous deadline of Jan 7.
The unconditional mandatory takeover offer, first initiated on Aug 20, 2024, aims to acquire all remaining ordinary shares of SMI not already owned by Target 1 and the parties acting in concert. The cash offer price remains at 45 sen per share.
Last month, Target 1 alleged that SMI was not cooperating in facilitating the EGM scheduled for Jan 9, as well as the unconditional mandatory takeover offer.
However, SMI stated that no EGM would be held on that date and initiated legal action to halt the meeting.
SMI's share price was last traded at 39.5 sen, giving it a market capitalisation of RM82.9 million. Over the past year, the counter has declined over 39%.
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