Integrax ... Jun10

The boardroom changes at port operator could be a preclude to something bigger as the tussle between its shareholders becomes known. Sources say the growing dispute between brothers Harun and Amin Halim Rasip, who are co-chief executive of the company, could result in the latter buying out the former in a move to end their long standing feud.

Their falling out is due to different management styles and future plans for Integrax as they are said to be disagree on how the company is run.

It is learnt Amin has roped in the support of Perak government which holds an 8.29% stake in the company, to buy Harun’s shares. Amin and Harun hold a joint 37.8% stake in Integrax via a few private companies. However, Amin’s effective stake stands at 39.25%, slightly higher than Harun’s 39.19%.

Its other substantial shareholders are JP Morgan and Credit Suisse, which holds 8.51% and 8.1% respectively. It is uncertain if these blocks of shares are held for any another party affiliated to either of the brothers.

Harun’s is unwilling to part with his shares as the offer price is below the company’s NAV per share of RM1.70 as at Dec 31, 2009.

The company’s upcoming AGM, scheduled for June 23, 2010 will be in spotlight as both Harun and Amin will be up for re election as directors. Speculation is rife that there may be plans to remove Harun from the board. Also up for re election is chairman Syed Tamim.

Another point of contention between Harun and Amin is the setting up of a single asset REIT. However the plan is opposed by Amin.

Should Amin and parties acting in concert with him succeed in buying out Harun’s shares, it is unclear whether a mandatory offer will be triggered as the changes will be made at the brothers’ private companies.

Financial Results …

The company’s profit took a nosedive to a mere RM2.6 million in FY2008 from RM42 million in FY2007. For FY2009, PAT recovered to RMN42.9 million.