Monday, 22 July 2013

Komark showdown set for Aug 26

A boardroom fight is taking place at low-profile Komarkcorp Bhd (Komark), a product label manufacturer that may just have more than what meets the eye. A notice for an EGM to remove the company's current board of directors was made on June 28 by two of the company¡¦s major shareholders. The expected showdown is set to happen on Aug 26 at the Bukit Jalil Golf & Country Resort at 2pm. A circular has been sent out to the shareholders.
  • Industry observers say Komark¡¦s attractiveness probably lies in its property, plant and equipment worth some RM124m. The company, with a market capitalisation of less than RM65m, made a net profit of RM1.5m on revenue of some RM136m for its financial year ended April 30, 2013. Industry observers say a likely scenario if the new shareholders do succeed in taking over Komark is that they may consider doing an asset-stripping exercise of sorts on the company, given its asset-rich position. The cash from the monetisation of some of its assets could likely be distributed to shareholders, they speculate. 
  • The two who are asking for the current company directors to be removed are Lim Pei Tiam and Tan Kwe Hee. They are requesting for Koh Hong Muan, who is the chief executive officer of Komark to be removed from his positions together with his children - Chie Jooi, Chee Mian, Chee Kiam and Chee Hao – who all hold executive positions. (Starbiz)

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