ETITECH (0118) - Coffee Chat - Etitech

ETITECH (0118) - Coffee Chat - Etitech

Feb 28, 2015

Four ex-directors of ETI Tech Corporation Bhd have been fined a total of rm22800.00 by Bursa Malaysia late Feb 2015 today for breaching market listing requirements. The four directors who were fined are Datuk Ahmad Shukri bin Tajuddin, Lee Kah Kheng, Khor Yee Kwang and Nordin bin Mohamad Desa. ETI Tech had failed to announce its audited financial statements (AFS) for the financial period from Sept 1 2011 to Feb 28 2013. The firm had only announced the AFS 2013 on Aug 1 2013 after a delay of 24 market days. ETI Tech had failed to demonstrate reasonable steps/efforts taken to ensure the outstanding audit issues were resolved expeditiously, to enable timely announcement of the audited financial statements 2013.

Meanwhile the Hong Leong Group has emerged as a substantial shareholder in Eti Tech Corporation Bhd with a 9.51% stake. Via Hong Realty (Private) Ltd, was deemed interest in the 95.01 million shares stake in Eti Tech. This followed the issuance of new shares with warrants to the group to settle the debt under Section 176 of the Companies Act, 1965 (Scheme of Arrangement).Eti Tech’s current paid-up is 998.66 million shares of 10 sen each.

Two largest shareholders each held only 4.81% as at Aug 5 2013. They are Nor Ashikin Khamis and Siti Munajat Md Ghazali. Airasia Bhd executive chairman Datuk Kamarudin Meranun

To recap in June 2014, it was reported that construction Zenith BUCG Sdn Bhd may well have struck god after gaining about 48ha of prime land estimated to be worth rm6.2 billion in exchange for undertaking the 6.5km tunnel infra project in Penang.

This will catapult the SPV, comprising Zenith Construction Sdn Bhd and Urban Construction Group of China into one of the major property players on the island, as it will get 24.3ha of reclaimed land form Sri Tanjung Pinang Phase 2 man made island and 20.2ha from the extended Gurney Drive.

Both plots are prime locations worth rm6.2 billion.

E&O is required to surrender 44.5ha to the Penang government after STP2 is reclaimed which would be vested to Consortium Zenith BUCG.

The consortium is getting an additional two parcels of land at Bandar Tanjung Pinang within the Northeast district – a 1.48ha plot and 2.32ha piece – although 0.58ha is to be set aside for TNB.

The 110 acres given to Zenith will generate the necessary funds to carry out projects.

Consortium is posed to be a significant developer in Penang’s most prime waterfront property.

There is speculation that Consortium Zenith BUCG is seeking a backdoor listing. Reports include that ETITECH controlled by Airasia Bhd co founder Datuk Kamarudin is rumored to be a RTO target of Zenith Construction Sdn Bhd following the appointment of two Zenith directors, Zarul Ikhwan Zarul Ahmad and Datuk Mohamad Amin to the ETITech board.

Reports say Zarul Ikhwan who is Zarul Ahmad’s son and people aligned to him have gained control of ETITECH after taking over the 10% new shares issued by the company via HK vehicle. The biggest block is held by Kamarudin.

If an RTO does takes place, ETITECH would take likely pickup as Consortium Zenith BUCG is a prime beneficiary of infra development in Penang and for the latter, there is also a compelling factor to go for ETITECH’s listing status for future fund raising.

However Consortium Zenith BUCG denies that there is an RTO.