PETALING JAYA (May 6): Shareholders of financially distressed Saujana Resort (M) Bhd (SRMB), who are also golfing members, have rejected a proposed restructuring plan at its extraordinary general meeting on May 5. The plan aimed to eliminate the company’s unique dual-share structure and recognise all shares as one and the same.
SRMB owns the Saujana Golf & Country Club, which occupies about 320 acres of a 349-acre mainly freehold site near Subang Airport.
The Edge understands that the proposal fell through after only 61.43% of Class B shareholders voted in favour of the plan, below the required 75% threshold. Class A shareholders, led by Peremba (Malaysia) Sdn Bhd, had approved it on April 16, but the meeting was adjourned after Class B shareholders said some had not received the circular. The reconvened vote was held on May 5.
The company currently has two share classes. Class A shareholders control board appointments and management, while Class B shareholders are mainly individual members with limited control but access to club facilities.
This structure is unusual, as most private clubs are fully owned by a company and members only have usage rights, not shares.
The proposed restructuring aimed to simplify this by merging both classes into one, making all shareholders equal, and introducing a redeemable preference share (RPS) scheme to give Class B shareholders additional usage rights of the golf club.
A spokesperson of SRMB told The Edge Malaysia weekly (May 4-10 issue) in its special report “Crucial May 5 vote could decide the future of asset-rich, cash-poor Saujana” that merging the two share classes is essential to any plan to strengthen the company’s balance sheet.
While it is not known what SRMB plans to do next, those familiar with the matter tell The Edge more details are expected to be revealed in the next few weeks.
SRMB has accumulated losses of RM117 million and current liabilities of RM134 million, including a RM121 million shareholder loan. The group is controlled by Peremba, linked to Tan Sri Mohd Razali Abdul Rahman, who also serves as the chairman.