In a statement today, MAA said it will vote against the slate of candidates proposed by German businessman Andreas Heeschen to replace the current board in the company’s extraordinary general meeting (EGM) on Oct 16.
The EGM next Monday will be considering resolutions to appoint a new lineup of directors including Heeschen himself, Johor princess Tunku Kamariah Aminah Maimunah Iskandariah Sultan Iskandar, and former KNM executive director Flavio Porro.
In its statement, MAA said that Porro and another proposed candidate William Van Vliet were previously employed by KNM during the “period of its financial decline”.
It highlighted that Porro was also one of the two executive directors of KNM when the company defaulted on RM354 million worth of Thai bonds on Nov 18, 2021.
“(The) executive director should take full responsibility for their inability to manage the companies under their charge, and owe a fiduciary duty, to always act, in the best interest of the company,” the statement read.
As of Sept 30, 2022, KNM chairman Tunku Yaacob Khyra holds 41.81% indirect stake in MAA through Melewar Acquisitions Limited and Melewar Equities (BVI) Ltd, both of which are wholly owned by Khyra Legacy Bhd (KLB).
Tunku Yaacob, a member of the Negeri Sembilan royalty, is a trustee of KLB.
He is also KNM’s largest shareholder with a 9.5% indirect stake according to the company’s local bourse filing dated Oct 6.
Meanwhile, MAA is a substantial shareholder of KNM with a 8.55% stake, according to its statement today.
In the statement, MAA also commended KNM CEO Ravindrasingham Balasingham for successfully securing the confidence and support of its creditors since his appointment on Nov 8, 2022.
“This ensures that the forthcoming court-convened creditors’s meeting will secure sufficient support for the scheme of arrangements to be adopted,” it said, adding that this will enable an orderly monetisation of KNM’s assets.
“Any change in the current management and board of KNM will be disruptive and potentially further destroy shareholder and creditor value,” MAA’s statement concluded.
As at 2.53pm, KNM’s shares were down 2.5 sen or 14.71% at 14 sen, giving it a market capitalisation of RM586.66 million.