Jetson ... Jul10

A recent turn of events suggests that all is not well on the board of Jetson.

In early July 2010, the company, which is 33.15% controlled by the Naza brothers saw the resignation of independent non-executive director Mohd Najib Abdul Aziz.

What is unusual is that Mohd Najib had been re-elected at the company’s annual general meeting less than three weeks ago on June 2010. He has been a board member since 2001.

So why did Najib resign so soon after being re-elected?

His exit comes as questions are raised over an announcement by Jetson on June 16 2010 that executive director Chow and Nasarudin and Faliq were not parties acting on concern.

Jetson made the announcement after Chow purchased an additional one million shares in Jetson at Rm2 each, raising his interest to 4.29%.

The notification that the Naza brothers and Chow were not acting in concert is crucial as it could potentially trigger a MGO because their combined stake would amount to more than 37%. Also, according to the rules, a major shareholders cannot accumulate more than 2% in a six month period as this would trigger a MGO.

The Naza brothers have a 33.15% stake in Jetson as at Aug 2009.

But since Jetson has made known to Bursa that Chow and the Naza brothers are not in any way related, the question of an MGO does not arise for now.

However, while it is a company’s responsibility to state whether parties are acting in concern, the final decision rests with the SC and Bursa Malaysia. The SC and Bursa must be satisfied and convinced that they are not parties acting in concert.

Some of the projects which involve Jetson include construction of the Maltrade Centre in Jalan Duta. Construction of two Platinum Park.