KUALA LUMPUR (June 11): Sarawak Consolidated Industries Bhd (KL:SCIB) has announced a slew of boardroom changes, including the appointment of Datuk Chong Loong Men as its new executive chairman and his emergence as the company's sole substantial shareholder.
In a filing with the stock exchange on Wednesday (June 11), the industrialised building systems company said Chong’s appointment takes effect immediately, replacing Datuk Seri Zaini Jass who has resigned.
Besides Zaini, three other independent and non-executive directors — Ooi Hoot Kuang, Kang Wei Luen, and Ng Cheng Shin — also stepped down on Wednesday, citing personal reasons and other commitments.
Notably, three more independent and non-executive directors — Datuk Tan Bok Koon, Mohd Naxri Mat Noor, and Dang Nguk Ling — also left the company earlier, on June 3.
In addition to Chong, SCIB announced the appointment of two new independent non-executive directors, namely Tan Li Peng and Leow Wey Seng.
Chong, 46, is currently a practising lawyer and previously served as a deputy public prosecutor at the Attorney General’s Chambers, said SCIB.
On March 10, Chong was appointed to the board of Erdasan Group Bhd (KL:ERDASAN). On the same day, he resigned as executive director of business process outsourcing company Advance Information Marketing Bhd (KL:AIM), just a week after his appointment.
In a statement, Chong expressed his enthusiasm for leading SCIB and pledged to build upon the strong foundation laid by the outgoing directors.
“With the diverse expertise and strategic insight of our newly appointed directors, we are confident in our ability to drive SCIB’s sustainable growth and reinforce our governance structures to deliver long-term value to our shareholders and stakeholders,” he said.
Sole substantial shareholder
In a separate filing, SCIB said Chong has emerged as a substantial shareholder in the company, holding a 5.8% stake.
This follows his acquisition of 40.5 million shares from businessman Keh Chuan Seng via an off-market transaction on Wednesday. A check with Bloomberg shows the shares were transacted at 28 sen apiece, amounting to RM11.35 million.
The price represents a steep premium of over 51% compared to SCIB’s last traded price of 18.5 sen on Wednesday.
Following the transaction, Keh will fully exit SCIB, while Chong will become the sole substantial shareholder of the company.
Since the beginning of the year, SCIB shares have declined by over 21%. On Wednesday, the counter closed half a sen or 2.6% lower at 18.5 sen, giving the company a market capitalisation of RM129.4 million.