Leong Sir Ley has been appointed its new managing director and executive director effective May 10 after Domain Capital Sdn Bhd, in which she has a deemed interest, acquired a 23.8% stake or 90 million shares in Yong Tai on Tuesday.
Based on Yong Tai’s closing price of 32 sen on Tuesday, Domain Capital would likely have paid about RM28.8 million for the block of shares acquired off market.
Leong, 48, is also the founder, chairman and CEO of Sheng Tai International Ltd, based in Hong Kong, and Sheng Tai International Sdn Bhd.
In a Bursa Malaysia filing, Yong Tai also announced the resignation of Boo Kuang Loon as CEO, also effective May 10.
Leong, who has been dubbed the Iron Lady of Property, is seen by some as a rising star in Malaysia’s property sector.
The lawyer turned property developer founded Sheng Tai International in 2012, and has since expanded it across the East Asian region with a diversified development portfolio. The company now has a presence in Hong Kong, Japan, Shanghai and Beijing.
Its business includes real estate, investment management, hospitality, property tourism, trading and manufacturing, fashion and lifestyle, and green technology.
Investors would know that Leong’s property group is behind the ambitious The Sail in Melaka project, envisaged to be the state’s future central business district (CBD). With a projected gross development value (GDV) of RM6.5 billion, the project at Kota Laksamana consists of nine tower blocks that resemble a ship by the Straits of Melaka.
Interestingly, The Sail is in the vicinity of Yong Tai’s Impression City, a 138-acre integrated mixed development, also in Kota Laksamana.
Is it a coincidence that Leong’s company has snapped up a quarter of a listed property developer whose property project is a figurative stone’s throw away? Probably not.
In a flurry of announcements, Yong Tai said it had appointed Tan Yoong Wei as its group chief operating officer. Tan is also a director of Sheng Tai International Sdn Bhd and Sheng Tai Impression Sdn Bhd.
The group also revealed that City Mall Sdn Bhd had ceased to be a substantial shareholder following its disposal of 20 million shares (5.29%) on Monday.
Yong Tai stalwart quits
In another filing, Yong Tai announced the resignation of Boo as CEO, effective May 10. However, he still remains an executive director with a direct interest of 18.95 million shares (5.012%). He was appointed CEO in 2016.
The company’ website describes Boo, 51, as the “mastermind” behind its Impression City mixed property development in Kota Laksamana, and the person responsible for the birth of its spectacular Encore Melaka theatre.
Designed with modernist architectural elements, performances at the 360-degree rotating auditorium with four main stages are presented in a new genre incorporating innovative art production.
“With the launch of Encore Melaka in 2018, the Melaka boy has realised his dream to showcase the cultural richness of his beloved hometown and share his love for the city with others,” the website said of Boo.
According to reports last year, the company had positioned itself to tap the return of theatre audiences following the re-opening of the Malaysian economy that has created a demand for in-person and shared experiences, particularly among tourists.
Yong Tai’s engagement with production houses featuring local and overseas artistes and performers has allowed the group to collaborate with performers to produce live shows at Encore Melaka.
At the close yesterday, Yong Tai shares rose 1.5 sen or 4.1% to 38 sen, giving the group a market capitalisation of RM141.5 million.
Acquiring a 23.8% stake in Yong Tai for just under RM29 million may well turn out to be an astute piece of business for Leong.
Now that she is at the helm at Yong Tai, investors will not be too surprised if her property group eventually decides to make a takeover bid.