KUALA LUMPUR (April 9): Puncak Niaga Holdings Bhd (KL:PUNCAK) said its executive chairman Tan Sri Rozali Ismail is stepping down as executive chairman effective June 30 this year.

Rozali's resignation will take effect upon the completion of a three-month period effective April 1, and will continue to serve in his present capacity in the meantime.

Rozali, who founded the group, will also resign as director of Puncak Niaga's subsidiary companies. 

"The board of directors has deliberated on the above, taking into consideration, among others, his current health condition, personal commitments, and the need to ensure continuity of leadership as well as adherence to good corporate governance practices," Puncak Niaga said in a statement on Thursday. 

Rozali, 68, set up Puncak Niaga's ex-operating unit Puncak Niaga Sdn Bhd back in 1989, and the outfit went on to be appointed by the Selangor state government to manage the water treatment plans for the state and Kuala Lumpur.

In 1997, Puncak Niaga went for listing. Later in 2014 as part of Selangor's water industry restructuring exercise, Puncak Niaga sold PNSB and 70% in Syarikat Bekalan air Selangor Sdn Bhd (Syabas) to the state government for RM1.55 billion cash. 

The group has been mostly loss-making since, operating in the construction of water and sewerage infrastructure, as well as oil palm plantation in Bintulu and facilities management including concession for UiTM Puncak Alam, following the acquisition of TRIplc Bhd for RM210 million cash from Pimpinan Ehsan Bhd (KL:PEB).

"The board and management of Puncak Niaga would like to record their sincere appreciation for YBhg Tan Sri Rozali’s longstanding leadership, dedication, and invaluable contributions to the company and the group," Puncak Niaga said in its statement.

"Under his stewardship, Puncak Niaga has achieved significant growth and stability, and his vision has played an essential role in shaping the company’s success," it said. 

"The board remains firmly committed to upholding robust corporate governance, maintaining leadership continuity, and ensuring the company’s long-term sustainability, while ongoing operations continue uninterrupted throughout the transition period," it added. 

Puncak Niaga shares last traded at 16.5 sen on April 8, giving it a market capitalisation of RM74.1 million.