Sunday, August 4, 2013

Flonic - changes of shareholders


The granddaughter of the late Tan Sri Tan Yuet Foh, the founder of Tan Chong Motors Holdings Bhd, has emerged as a substantial shareholder in manufacturer of critical and precision cleaning systems Flonic Hi-Tech Bhd, suggesting that some exciting changes may be in store for the firm.

Tan Siew Ching, 43, had previously already held a small stake in the firm. She had on July 15 2013 bought 10 million shares at 10 sen each and another 7 million shares at 10.5 sen each a day later, increasing her stake in the firm to a substantial 6.72%.

Notably, Tan’s husband, Chua Wye Man, is the executive chairman of Flonic. He has a 1.86% stake in the company. Chua, much like Tan, is also linked to the family of a high-profile automotive firm – namely the Cycle & Carriage Bintang group which is a dealer for the Mercedes Benz brand in Malaysia . He was appointed a director of Flonic in June 2012 and re-designated to executive director and executive chairman later 2012.

Currently (July 2013), the largest shareholders are one Ong Say Kiat with a 8.60% stake, followed by Novatige Sdn Bhd, which holds a 7.72% stake. Tan is the third largest shareholder.

Recall in February 2013, Tan emerged as a substantial shareholder in plastics manufacturer IRM Group Bhd. At last look, she has a 13.83% stake in the firm.

Industry observers believe that Flonic could potentially see more high-profile shareholders coming on board with Tan’s stake increase paving the way.

While speculation is still swirling as to who that oil and gas personality is, sources say it is former Perisai Petroleum Bhd major shareholder Nagendran Nadarajah. According to one source, he had been accumulating shares in the firm over the past few days and could potentially hold a substantial stake in it.

In 2010, Nagendran disposed of his 19% stake in Perisai to HCM Logistic Ltd, a subsidiary of Singapore-listed Ezra Holdings Ltd.

Nagendran is known to be a savvy investor and an oil and gas heavyweight. He also reportedly holds a stake in South-East Asia’s first special purpose acquisition company - Hibiscus Petroleum Bhd.

Whether or not he eventually emerges in Flonic, it is no surprise that questions are already being raised as to whether or not Flonic could potentially tap and diversify into the oil and gas industry.

1 comment:

Anonymous said...

Sorry to say but I am amused by this article. I was working at Flonic for some time before it was closed down... Not sure on what basis this report is written but as far as I know, Flonic's manufacturing factory, "Flonic Advance" was closed somewhere in late Feb early March with its staff transferred to CFB group of companies. As far as I can tell, higher management of Flonic is very unscrupulous and I believe that the decision to close down the manufacturing factory was very last minute and quite a number of their employees were not properly reimbursed for their hard work and dedication towards the company.

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