KUALA LUMPUR: Manufacturing, construction and hostel management company Kumpulan Jetson Bhd's shareholders will be going in blind to an extraordinary general meeting (EGM) to remove its current board of directors.
A notice by shareholders who own more than 10 per cent in the company to remove its existing board of directors, did not state the reason as to why the requisionists are looking to remove the directors and replace them with another five.
The EGM will be held virtually at 10am today.
The five looking to be appointed includes, Tee Chee Beng, a former executive director of the company.
10 shareholders, including Tee Chee Beng, holding a collective 10.21 per cent interest in the company, seek to remove executive director Edward Ng Kah Jiun, non-executive deputy chairman Tunku Datuk Nooruddin Shahabuddin, Louise Paul Joseph Paul, Hong Cheong Liang and Goh Rui Yee from the board.
They will be replaced by Tee Chee Beng, Chuan Sieh Yee, Joe Tee Chang Chee Lup, Boey Sook Yen, and Melvin Ong Kok Ho.
Tee Chee Beng is sister to founder of Kumpulan Jetson, Datuk Teh Kian An.
As at Jan 16, 2024, companies associated with Teh have raised their stake in Kumpulan Jetson to 5.913 per cent. He owns a 4.349 per cent direct interest in the company with a market capitalisation of about RM67 million.
Tee Chee Beng and company are seeking to remove directors which were appointed when Teh resigned from his post as executive chairman due to health reasons in October 2023.
The board's independent director Edward Ng was redesignated to executive director, and Tunku Nooruddin was appointed as non-executive deputy chairman in October 2023.
Datuk Tengku Ibrahim Farihaddin Feissal and Datuk Mohd Efendi Omar who were also appointed to the board at the time, resigned in November 2023.
This is Tee Chee Beng's second attempt to remove the directors on the board.
Her first attempt in December last year was declared null and void by the company after the requisionists were found to have not met the required 10 per cent ownership threshold to call for an EGM by the company's secretarial agent and share registrar Securities Services (Holdings) Sdn Bhd.
Kumpulan Jetson is in the midst of suing the ten who had made the first requisition for defamation.
Kumpulan Jetson's main revenue earner is the manufacturing division that develops and manufactures anti-vibration parts for the automotive sector. It counts Proton and Perodua as its customers.
It also has a hostel management division that oversees and manages the hostels and facilities at University Putra Malaysia (UPM) under a 25-year concession with UPM, that expires in 2028.
Kumpulan Jetson recently announced that it made a net profit of RM2.73 million against RM61.375 million revenue for the fourth quarter ended Dec 31, 2023 mainly driven by higher sales from automotive industry and increased sales of solvent based chemical products in the trade market.
The higher profit before tax in the quarter however was mainly due to the reversal of impairment loss on the UPM hostel management concession right of RM2.5 million.
The company's current financial year spans 15 months, after its financial year was changed to Mar 31, 2024.
On Mar 5, 2024, the company also applied for an extension of time for the company to submit the draft circular for its proposals to, among others, a private placement of new shares in Kumpulan Jetson and the 51 per cent acquisition of Magical Era (M) Sdn Bhd.
Magical Era owns a 25 hectare Vendor City Industrial Park in Malacca.