Bigger fight in store at Petra Perdana AGM?

Petra Perdana Bhd's (PPB) move to remove three directors from Petra Energy Bhd (PEB) could end up being a sideshow to a tussle expected at PPB's annual general meeting.

This week, PEB told the stock exchange that an extraordinary general meeting (EGM) will be held on June 24 to remove Tengku Datuk Ibrahim Petra, Lee Mee Jiong and Suhaimi Badrul Jamil as directors of the company.

It is believed that the move is being spearheaded by PPB's managing director Shamsul Saad with the backing of the Koh brothers - Datuk Koh Poh Eng and Koh Poh Wat, who hold about 9 per cent of the company.

It is also believed that Shorefield Resources Sdn Bhd, which owns 30 per cent of PEB, is currently inclined to support the removal bid.

Tengku Ibrahim told Business Times it is too early to say if he can muster enough shareholder support to defeat the resolution at the EGM.
"I believe that regardless of my position, shareholders should consider whether it is in the best interest of Petra Energy to appoint on board someone who is being sued by the company's subsidiary, Petra Resources Sdn Bhd, for breach of trust," added Tengku Ibrahim.

Meanwhile, it is learnt that PPB's AGM, which will be held four days later on June 28, could set the stage for yet another showdown.

PPB (7108) had its final board meeting yesterday, ahead of the circular being sent out to shareholders.

Business Times understands that PPB will send out a circular soon to shareholders stating that some of its existing directors will stand for re-election.

A PPB official confirmed this, but declined to reveal the number of directors who are up for re-election.

There could be a move to stymie the re-elections, but for now, Tengku Ibrahim, who has about 12.94 per cent of PPB, is playing his cards close to his chest.

"Shareholders at PPB should think hard about whether it is in the interest of PPB that those involved in the breach of trust suit continue to work at the company," Tengku Ibrahim said when asked if his group would oppose the re-election.

To defeat the re-appointments, Tengku Ibrahim will need the support of state-linked funds such as Lembaga Tabung Haji, with a 10.16 per cent stake, Amanah Saham Wawasan with a 7.55 per cent stake and Permodalan Nasional Bhd with a 5.85 per cent stake in PPB.



By Francis Fernandez
Business Times