Asdion shareholders voice concern after 3 directors resign

KUALA LUMPUR: Shareholders of Asdion Bhd are concerned about the future direction of the company after the resignation of two key directors in the group, one of whom was from newly acquired logistics company, TAZ Logistics Sdn Bhd.
The issue centres on the share sale agreement (SSA) to buy a majority stake in TAZ, which was completed on Feb 6, 2015.
A shareholder who attended Asdion's AGM on Monday, speaking on condition of anonymity, told reporters that the SSA signed included a guarantee from the vendor that TAZ would hold the licence to handle cargo coming through Kuantan Port until December 2017.
However, at the AGM yesterday, shareholders were informed that TAZ's licence may be removed before that. No further details were given.
It is not known how the vendor could provide such a guarantee for the licence, which is up for renewal annually.
The vendor was Datuk Mohamed Ridzuan Nor Md, who was one of three directors who resigned on Saturday without giving a reason. Ridzuan is the son of former second finance minister Tan Sri Nor Mohamed Yakcop.
Another personality who resigned was chairman Tengku Azlan Ibni Sultan Abu Bakar. Tengku Azlan, the younger brother of the Sultan of Pahang, is also chairman of the Kuantan Port Authority.
The third person to resign was executive director Datuk Yen Soon Ai.
Earlier this year, Asdion paid RM6 million cash to acquire a 51% stake in TAZ from Ridzuan as part of its diversification from its loss-making software programming business. The deal was completed on Feb 6, 2015. Ridzuan now holds 34% of TAZ.
Commenting on the resignations, the shareholder said: "It's like investing in a restaurant and the cook leaves."
Asdion group managing director and CEO Yap Tai Tee said the company is discussing these issues, including the resignation of the directors and their replacements. "We will work on it," he said, without elaborating.
He said the logistics business will continue despite the boardroom changes and its deal with Hong Kong International Mining Exchange Ltd for the supply of bauxite to Hong Kong International Mining Exchange Ltd remains unaffected.
The US$112 million (RM495 million) deal is to deliver four million dry tonnes of bauxite at a base price of US$28 per dry tonne. However, the first delivery, supposed to be made in July, has been delayed. Yap said it was delayed because Asdion needed more time to prepare.
All resolutions were passed at the AGM on Monday except for the re-election of the three directors. The resolutions were withdrawn due to their resignations.
After the market closed, the company announced one more resignation and three new appointments.
Mohamad Farid Mohd Yusof resigned from the nomination committee and the audit committee. Datuk Seri Maglin Dennis D'Cruz was appointed independent and non-executive chairman, Syed Amir Syakib Arsalan Syed Ibrahim named to the nomination committee and Jason Minos Anak Peter appointed executive director.