PRG Holdings seeks to wind up firm linked to largest shareholder over RM64m project dispute

KUALA LUMPUR (July 10): PRG Holdings Bhd (KL:PRG) said on Thursday it will commence a winding-up petition against  a company linked to its largest shareholder Datuk Ng Yan Cheng over RM64.24 million in alleged outstanding payments for construction works on a residential project in Kuala Lumpur.

In a bourse filing on Thursday, PRG said its solicitors have been instructed to file the petition against the company, Premier De Muara Sdn Bhd (PDM).

The move follows a statutory demand issued by PRG's wholly-owned unit, Premier Construction (International) Sdn Bhd (PCI), to PDM on June 8, giving the company 21 days to settle the amount, failing which winding-up proceedings would be initiated. PCI was the main contractor for the Picasso Residence project, which was developed by PDM and has since been completed.

Following PRG's move to recover RM64.24 million from PDM, Ng, who holds a 19.39% stake in the group, served PRG with a RM21.22 million statutory demand on July 1 for advances previously extended as working capital and recorded as shareholder loans.

He has given the group 21 days to settle the amount, failing which he may initiate winding-up proceedings against the company.

The dispute between the board and the shareholder stemmed from PRG's termination of a settlement agreement with PDM on May 19, among others, on grounds that PDM's failure to disclose its link to Ng and the existence of a court judgment against the company affected its ability to fulfil its obligations under the agreement.

Under the settlement, 12 high-rise residential units at Picasso worth RM13.37 million were to be transferred to PRG as partial settlement of RM37.17 million owed by PDM.

The dispute has also spilled into the boardroom, with PRG's second-largest shareholder Datuk Sheah Kok Fah mounting a second attempt to oust group managing director Andrew Chan Lim-Fai, who is Ng's son-in-law.

Sheah, together with shareholders Sy Dioceldo Sy, Cheah Eng Chuan and Datuk James Jr Lee Weng Kei, who collectively hold more than a 10% stake in PRG, on Wednesday called for an extraordinary general meeting to remove Chan and revamp the board.

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