Baswell ... Jan10

An individual Ng Min Lin emerged as a substantial shareholder in Baswell, after acquiring a direct interest of 5% or 2.4 million shares. He had made the acquisition on Dec 24 2009.

Ng upped his stake to 23% or 11.04 million shares after buying two tranches of 4.32 million shares each for a total of 8.64 million shares on Dec 31 and Jan 5 2010. Howeve, Ng had since pared down his stake to 21.9 million shares.

Ng could have acquired his stake from Dr Oh Han Cheng or Dr Oh’s spouse Khoo Yew Kheng, who have been trimming their stake in the furniture company.

Oh is the founder of Baswell, and its executive chairman, while Khoo is Baswell’s managing director. Khoo’s brother Khoo Yew Nean is an executive director of the furniture maker. For FY2008, the trio collectively control some 52% of Baswell. The only other substantial shareholder in the company is Wan Ismail Wan Nik who has 10.52 million shares or 21.91% of Baswell.

Two board appointments were also made in Jan 2010. Tan Beng Kheng, who is the managing director of Penang-based Seng Seng Construction Sdn Bhd, and Ng’s father- in-law, Datuk Wong Kam Hoong, were appointed to the board in non-executive positions. Wong was formerly deputy minister of culture, arts and heritage.

Seng Seng Construction is controlled by privately held Tan Kiew Seng Holdings Sdn Bhd, and Tan is a director of Seng Seng Construction.

Seng Seng Construction suffered a net loss of RM1.9 million on RM38 million in revenue for its financial year ended June 2008
Meanwhile Baswell Resources Bhd has secured a US$100 million sub-contract to manufacture and install furniture and fittings at the Al Reem Island.

It has entered into a memorandum of understanding with Hong Kong's Metroplex Resources Ltd to collaborate with the Al-Amry Group on the Al Reem Island mixed development.

Al Reem Island is a residential, commercial and business project to be built on the natural island of Al Reem Isle, located off the northeastern coast of Abu Dhabi city.

The company added that the MOU would remain in effect for two years and could contribute positively to Baswell's future earnings.

Going Forward … the new substantial shareholder wants to take it to Abu Dhabi in the United Arab Emirates.

Ng wants to position Baswell not only as a premium producer of furniture, but also as a company that provides services to building owners from design to manufacture and installation of furniture and fittings.

Baswell has rm48 million paid up capital and manufactures and sells wooden furniture and furniture parts to the domestic and export markets.

The company do not do well in FY2008, it posted a pre tax loss of RM10.13 million.