Tuesday, July 3, 2012

APEX ... Jul12

There is speculation that a proxy fight could break out between two of the substantial shareholders of Apex Equity. Executive chairman chan was ousted at the company’s AGM. In an interestingly twist, Apex Equity’s existing board, which consists of only two directors Datuk Azizian and Leow Yan Seong reappointed Chan as the company’s executive director on 25 June 2012, less than two working days after the AGM in Kajang.

Meanwhile in response to Bursa’s UMA, Apex Equity said it was unaware of any material development in the company that would have cause the sharp rise on its share price.

It is learnt that Metroplex Bhdm which is controlled by the late Tan Sri Lim Goh Tong’s daughter Lim Siew Kim had voted against the re election of Chan and Lew Lup Seong on the board at the AGM. The single largest shareholder in Apex Equity is Fun Sheung Development Ltd (15.71%) followed by Chan 8.76% and Metroplex Bhd with 6.63% stake, whose shares have been pledged to Arab Malaysian Credit Bhd.

However industry observers noted that both Chan family and Metroplex together with parties acting in concert hold more than 30% each. Lim is the wife of Dick Chan, the brother of Chan Guan Seng.

This is likely to be shareholder fight caused by a family feud.

The sharp rise in Apex Equity’s share price was mainly fuelled by speculation that the stockbroking group might be in for a shareholder tussle which may lead to the disputing substantial shareholders accumulating more shares on the open market to strengthen their position in Apex Equity. Shares in Apex equity are tightly held … there is not much liquidity.

All eyes will be on the Metroplex’s next move in Apex Equity after Chan’s reappointment back to the board. Will the substantial shareholder convene an EGM to remove the present board? Also, is Metroplex mulling a move to participate in the company’s management currently led by Chan. Chan remains as the MD of Apex Equity’s subsidiaries including JF Apex Securities Bhd.

Apex Equity is one of the standalone stockbrokers that had completed one plus one merger.

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