Omesti seeks to replace two Ho Hup directors with appointees

• The rationale behind the proposed resolutions was not disclosed in the notice.

KUALA LUMPUR (Oct 22): Ho Hup Construction Co Bhd (KL:HOHUP) said its substantial shareholder Omesti Holdings Bhd (KL:OMESTI) has sought an extraordinary general meeting (EGM) to replace two of the construction outfit’s directors with appointees.

The company, which holds a 10.4% stake in Ho Hup, is seeking an EGM on Nov 20 to remove executive director Datuk Wong Kit-Leong and director Low Kheng Lun, and appoint Ong Koon Loong and Bernard Chen Tong Liang, according to a notice filed with the bourse on Wednesday.

Omesti, an information and communication technology services provider, is also seeking to remove any board appointments made between the date of the notice and the EGM being held.

The rationale behind the proposed resolutions was not disclosed in the notice.

Wong has been on Ho Hup’s board since August 2010, while Low has sat in his director position since October 2011. Wong holds a 0.029% stake in the company, while Low has a 4.42% stake via family vehicle Low Chee Group Sdn Bhd.

On the proposed appointees, Omesti’s notice said Ong has 20 years of experience in audit and finance, and has served as chief financial officer at Asdion Bhd (KL:ASDION) and chief risk and compliance officer at Managepay Systems Bhd (KL:MPAY).

As for Chen, the company said he has over three decades of experience in corporate finance, banking, asset management and business advisory, and has served as CEO of BIB Insurance Brokers Sdn Bhd, a Hong Leong Group company, and in various senior roles at OCBC Bank (M) Bhd.

Ho Hup has been in financial trouble since earlier this year.

In April, it fell into Practice Note 17 classification after its wholly owned Bukit Jalil Development Sdn Bhd defaulted on RM112.69 million in loan facilities for which Ho Hup is the guarantor.

Prior to that, the company has been in the red since 2021.

The loss streak was extended to its latest three-month period ended June 30, 2025, when Ho Hup posted a net loss of RM275.9 million on a revenue of RM2.31 million, due to the recognition of hefty impairments.

The company shifted its financial year-end from end-December to end-June in February this year. For the 18-month period ended June 30, 2025, Ho Hup’s net loss stood at RM473.25 million with a revenue of RM57 million.

Shares in Ho Hup ended one sen or 40% lower at 1.5 sen on Wednesday, valuing the company at RM7.77 million.

Omesti shares closed half a sen or 6.25% lower at 7.5 sen, giving the company a market capitalisation of RM82.6 million.

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