L&G to consider nominations to board

L&G to consider nominations to board
KUALA LUMPUR: Land & General Bhd (L&G) will deliberate on nominations of directors at a board meeting slated within the week, executive director Rita Benoy Bushon said yesterday.

The six-member L&G board is now headed by Bushon, who is the Employees Provident Fund's (EPF) nominee, after chairman Datuk Oh Chong Peng withdrew from seeking re-election to the board.

“My job here (with L&G) is finished,” Oh told reporters after the company AGM yesterday.

Oh said he had anticipated resistance from certain substantial shareholders. “I saw a lot of markings on proxy forms against me. There's no point for me to seek re-election.”

As at last week, the single-largest shareholder of L&G was Unioncity Enterprises Ltd, a company linked to Datuk Ishak Ismail, the former managing director of KFC Holdings (M) Bhd, with 14.9%.

EPF is the second largest with 9.86%, while Hong Kong-based property tycoon Tan Sri David Chiu has an 8.35% stake via Mayland Parkview Sdn Bhd. Mayland had earlier withdrawn a request to have its nominees Low Gay Teck and Muhammad Khairun Aseh elected directors during yesterday's AGM.

The two nominees were believed to be up against directors Lau Tiang Hua and Datuk Imran Ho, who were believed to be aligned to Ishak.

“I think they want the board to deliberate the issue instead of going straight to the AGM,” Oh said.

On L&G's operations, Bushon said despite resistance from some shareholders, the group would still look into divesting non-core assets, except landbank and its education business. Topping the list is Vietnam Industrial Investment Ltd.

The group, which encountered financial difficulties during by the 1997 economic crisis, had hived off some RM800mil worth of assets in the last five years under its asset disposal scheme.

For the financial year ended March 31, 2007, L&G's pre-tax profit dropped sharply to RM8.59mil from RM96.37mil previously as it slowed down the asset-selling activities.

Bushon said the group had accumulated RM137mil in its composite debt restructuring scheme (CDRS) escrow account that was able to square off its debt position.

“But we are now seriously looking at resuming our property development activities,” she said, referring to a plan to develop an upmarket residential project on a 42-acre hilly site in Bandar Sri Damansara.

However, she said new property launches had a one- or two-year gestation period and she did not expect property development to impact L&G's results during the time.

On loss-making unit Bandar Sungai Buaya Sdn Bhd, Bushon said: “We have been studying whether we can liquidate or look into setting up a joint venture with a property developer who can pump money into the project. Or, we can also develop the project with the banks.”