PETALING JAYA: Bahvest Resources Bhd’s boardroom battle has taken another turn with the release of its CEO’s written representation today, which saw its share price plummet 11.11% to 20 sen at the close of trade.
It was the second-most active counter traded today, with 107 million shares changing hands.
The plunge came just a day after the group announced it slipped into the red with a net loss of RM11.2 million for the fourth quarter ended March 31, 2023 (Q4 FY2023) and RM10.3 million for the financial year ended March 31, 2023.
This was a big drop from the previous financial year which ended with a net profit of RM12.2 million.
Bahvest was looking to end the year in the black after posting a net profit of RM602,000 and a revenue of RM108.34 million for its cumulative nine-month period (9MFY2023).
Despite its revenue increasing 47.5% quarter-on-quarter to RM34.4 million, the group ended in the red due to a RM13 million provision following a non-refundable deposit paid to Southsea Gold Sdn Bhd.
Southsea, which is 75%-owned by Bahvest CEO Lo Fui Ming, sub-leased a portion of its land in Tawau to Bahvest’s subsidiary, Wullersdorf Resources Sdn Bhd.
On May 2, Southsea sent a letter of demand seeking a RM20.4 million payment from Bahvest for the latter’s alleged wrongful occupation of its land from September 2017 to April 2023.
Both parties subsequently reached a temporary resolution, in which Wullersdorf would make a non-refundable deposit of RM13 million to initiate negotiations regarding a final compensation amount and tenancy status on the land.
CEO breaks silence
In his written representation reported by The Edge, Fui Ming shared his side of the story regarding the company’s boardroom battle.
“In view of all the recent developments, Tek Yong and I are seriously considering resigning as directors and focusing on developing my own personal business at Southsea, which I have neglected till now,” Fui Ming said.
Bahvest’s extraordinary general meeting (EGM) has been fixed for June 13 after a group of shareholders had sought to remove him, his son Tek Yong and non-executive chairman Kamal Bilal from the board.
“I tried hard to work out our differences (with those shareholders) to keep Bahvest afloat,” said Fui Ming.
Last week, the Malaysian Anti-Corruption Commission (MACC) conducted a raid on Wullersdorf’s goldmine and office in Tawau, Sabah.
Among those detained and remanded were Fui Ming, Tek Yong, Chong Khing Chung (Bahvest CFO), Shahrol Azuan (Bahvest COO and chief metallurgist), and Brando Pang (Bahvest assistant general manager).
“Even though now that we are released from remand, Bursa Malaysia has instructed for a management committee be formed and that Shahrol, Brando and I cannot be involved in it.” he said.
Fui Ming said the remand was prompted by allegations in a letter dated April 28 that he had stolen gold.
“As both Shahrol (who was also named in the poison pen letter) and I did not do any of the wrongdoings alleged, I ignored the letter and did not lodge a report with the police,” Fui Ming said.
“Up until now, I am still trying to keep Bahvest operational and ensure that employees are paid, as about 1,500 people, especially those in Balung Cocos, Tawau, depend on the company for livelihood,” he added.