Seloga shareholders withdraw notice of Monday EGM

31 January 2011 , By The Star

In an abrupt turn of events, the two shareholders of Seloga Holdings Bhd that had requisitioned an EGM scheduled for Monday to remove four directors have withdrawn the notice to convene the meeting.

As such, there will be no EGM on Monday. The reasons were not cited in the notice of withdrawal, of which a copy was made available to StarBizWeek.

“The four directors will remain. We just want to move forward and build the company,'' said a source.

The two shareholders who wanted to remove the four directors are Tan Sri Halim Saad and Zulkefli Zaidi. Halim indirectly owns nearly 32.5% of Seloga via Usaha Citra Sdn Bhd and Lucky Lamp International Ltd.

The four directors to be removed on Monday were Datuk Samsudin Abu Hassan, Datuk Lim Git Hooi (chairman), Datuk Syed Md Amin Syed Aljeffri and Derek John Fernandez.

Samsudin, when contacted yesterday, said “no further comments. I am still in the office.''

Those in the know claim that the controversy surrounding Seloga had stemmed from the differences in opinion on the way the company was managed and views regarding its financial performance. Hence the move to remove the four directors.

Samsudin joined Seloga in June 2008 to turn the company around while Lim and Syed Amin have been with the company since 2003. Fernandez joined in 2001.

“Both sides must have come to some sort of compromise and that works well for them and the company. They have to focus on the company now,'' said another source. He added that the task ahead was timely completion of Seloga's restructuring to ensure that the company's shares were re-listed because that was what minority shareholders had been waiting for.

Seloga is a property developer and its current main project is a commercial and housing development in Taman Nusantara, which is within Iskandar Malaysia in Johor. The project, which covers about 120ha, has a gross development value of about RM600mil.

Seloga shares were suspended from trading on Bursa Malaysia when the company fell under PN17 category on Nov 9, 2007. Its last-traded price was 17 sen. For the cumulative nine months ended Sept 30, Seloga reported a net profit of RM7.5mil on revenue of RM32.8mil.