Shares in Ho Hup Construction Co Bhd plunged the most in two years yesterday, snapping a five-day winning streak.
The stock closed 36%, or 72 sen, lower to RM1.27, wiping out more than RM73mil in its market capitalisation. Around 5 million shares changed hands.
Its price had tripled in the past five days.
While the company has said that it was not aware of the reason behind the surge in its share price, analysts said the fall in price was fuelled by investors who were cautious on the company’s fundamentals due to the ensuing tussle between shareholders.
StarBiz reported yesterday that the board of directors of Ho Hup would fix a meeting to discuss the intention of Low Chee & Sons Sdn Bhd and Choo Soo Har to call a special meeting for the removal of the current board and appointment of a new one.
Low Chee & Sons and Choo are substantial shareholders in the company.
They had earlier announced to Bursa Malaysia their intention to call for an EGM on Feb 4 for the removal of seven members of the board and appointment of six others.
Ho Hup group managing director Lim Ching Choy had told StarBiz that he was unsure about the motive for the removal of the members of the board, which included himself and deputy executive chairman Datuk Vincent Lye Ek Seang, also a major shareholder.
“We’re going to have a board meeting to discuss the matter but we haven’t fixed the date yet,” he had said.
This development follows the ongoing tussle at Ho Hup, where Datuk Low Tuck Choy, one of three owners of Low Chee & Sons, had opposed the sale of two parcels of land held by Ho Hup and approved by the board headed by Lye on the basis that these were being sold at below market rates.
Meanwhile, in a statement to the stock exchange yesterday, Ho Hup said it had instructed its solicitors to commence legal proceedings against Low Chee & Sons and Datuk Low for defaming the company through the media.
The solicitors filed the writ indorsed with a statement of claim yesterday, the company said.
In another statement, Ho Hup said it received yesterday documents from Low Chee & Sons and Choo pertaining to the proposed Feb 4 EGM.
The stock closed 36%, or 72 sen, lower to RM1.27, wiping out more than RM73mil in its market capitalisation. Around 5 million shares changed hands.
Its price had tripled in the past five days.
While the company has said that it was not aware of the reason behind the surge in its share price, analysts said the fall in price was fuelled by investors who were cautious on the company’s fundamentals due to the ensuing tussle between shareholders.
StarBiz reported yesterday that the board of directors of Ho Hup would fix a meeting to discuss the intention of Low Chee & Sons Sdn Bhd and Choo Soo Har to call a special meeting for the removal of the current board and appointment of a new one.
Low Chee & Sons and Choo are substantial shareholders in the company.
They had earlier announced to Bursa Malaysia their intention to call for an EGM on Feb 4 for the removal of seven members of the board and appointment of six others.
Ho Hup group managing director Lim Ching Choy had told StarBiz that he was unsure about the motive for the removal of the members of the board, which included himself and deputy executive chairman Datuk Vincent Lye Ek Seang, also a major shareholder.
“We’re going to have a board meeting to discuss the matter but we haven’t fixed the date yet,” he had said.
This development follows the ongoing tussle at Ho Hup, where Datuk Low Tuck Choy, one of three owners of Low Chee & Sons, had opposed the sale of two parcels of land held by Ho Hup and approved by the board headed by Lye on the basis that these were being sold at below market rates.
Meanwhile, in a statement to the stock exchange yesterday, Ho Hup said it had instructed its solicitors to commence legal proceedings against Low Chee & Sons and Datuk Low for defaming the company through the media.
The solicitors filed the writ indorsed with a statement of claim yesterday, the company said.
In another statement, Ho Hup said it received yesterday documents from Low Chee & Sons and Choo pertaining to the proposed Feb 4 EGM.
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