Naza brothers resign from executive positions on JETSON’s board

The Naza Group’s Sheikh Mohd Nasarudin SM Nasimuddin and Sheikh Mohd Faliq SM Nasimuddin have resigned from their executive positions on the board of Kumpulan Jetson Bhd, in yet another sign of brewing trouble between the duo and the construction outfit’s previous management.

In separate announcements to Bursa Malaysia yesterday, Jetson announced that it had yesterday received Faliq and Nasarudin’s resignation letters dated Oct 1.

Nasarudin resigned as Jetson chairman and executive director while Faliq has relinquished his position as vice-chairman and executive director. However, both will remain on Jetson’s board as non-executive, non-independent directors.

Nasarudin and Faliq had earlier assumed their positions on the Jetson board at end-November last year. Both are major shareholders of Jetson through their private vehicles Odyssey Wealth Sdn Bhd and Superior Pavillion Sdn Bhd.

The brothers had entered into Jetson by purchasing shares from several people including Jetson’s co-founders Isnin Rahim (then Jetson chairman and executive director), Jetson group managing director Datuk Teh Kian Ann and Jetson executive director Tee Keng Kok.

In August 2009, Nasarudin and Faliq had acquired a 33.2% block (now diluted to 28.9% after placement of new shares) in Jetson for RM12.3 million, via their vehicle Superior Pavilion Sdn Bhd, before making a general offer for the company.

SM Faliq relinquished vice-chairman's post

Jetson was earlier touted to be the Naza Group’s property and construction arm but in recent days, the Naza brothers’ relationship with Jetson’s management is said to be stormy as evidenced by the termination of two Naza Group-related contracts with Jetson.

One of the contracts axed includes a joint venture between Jetson and the Naza Group to construct the proposed RM800 million Matrade Centre project off Jalan Duta and the development of the adjacent 62.5 acres of land under a land-swap arrangement with the government.

Also terminated is a contract for a construction job related to Naza’s multi-billion ringgit Platinum Park project near KLCC. Nasarudin and Faliq are sons of Naza Group founder, the late Tan Sri SM Nasimuddin Sheikh Mohd Amin.

Nasarudin is currently co-chairman of the Naza group of companies and runs the automotive assembly and distribution side of the Naza Group’s business while Faliq is in charge of the group’s property business.

All eyes are now on whether the Naza brothers would eventually exit from Jetson.
This article appeared in The Edge Financial Daily, October 5, 2010.