KUALA LUMPUR (July 1): PRG Holdings Bhd (KL:PRG) is facing a RM21.22 million statutory demand from its largest shareholder Datuk Ng Yan Cheng amid an ongoing dispute involving its subsidiary and a property developer linked to Ng.

PRG said in a Bursa Malaysia filing that it received the demand on June 30 from Messrs Yap Siew Yee & Co on behalf of Ng, who holds a 16.39% stake in the company. The amount relates to advances previously provided by Ng as working capital and recorded as amounts owed to a shareholder.

Ng has given PRG 21 days to settle the amount, failing which he may commence winding-up proceedings against the company.

The demand comes after PRG subsidiary Premier Construction (International) Sdn Bhd (PCI) issued a separate demand for RM64.24 million in outstanding payments from Premier De Muara Sdn Bhd (PDM), a property developer linked to Ng, for a completed construction project. The payment deadline has since lapsed.

PCI, the main contractor for PDM’s Picasso Residence project, had earlier proposed a debt settlement involving the transfer of 12 residential units worth RM13.37 million as partial repayment, while the remaining RM23.44 million was to be negotiated.

However, the proposal was terminated on May 19, 2026 after concerns were raised over the undisclosed relationship between PDM and Ng, who has an equity interest in the developer.

Following pressure from PRG’s second-largest shareholder, Datuk Sheah Kok Fah, which has an 8.14% stake in the company, the board appointed PKF Covenant Sdn Bhd to conduct an independent review of the transactions between PCI and PDM.

The review will assess the fairness of the dealings, potential financial impact on PRG and minority shareholders, project financing arrangements and governance issues.

The review is expected to take about 12 weeks, with a draft report expected within 10 weeks after all required information is provided.

Shares in PRG closed unchanged at 9.5 sen on Wednesday, valuing the company at RM46.58 million.