Sanbumi’s Chai appointed Fajarbaru exec director

KUALA LUMPUR: Timber outfit Sanbumi Holdings Bhd’s executive director Tan Sri Chai Kin Kong has been appointed  as an executive director of Fajarbaru Builder Group Bhd after he emerged as a substantial shareholder of the  latter.

This follows his acquisition of a 6.5% stake in Fajarbaru on Monday, the same day Fajarbaru non-executive  chairman Datuk Kuan Peng Ching @ Kuan Peng Soon ceased to be a substantial shareholder after disposing of 9.5 million shares at RM1.05 per share for a total of RM9.97 million.

After his disposal, Kuan’s interest in Fajarbaru was reduced to a direct stake of 0.76% comprising 1.26 million  shares and an indirect stake of 2.82% comprising 4.68 million shares. Kuan, 64, an engineer by profession, was  appointed to the board on May 17, 2006.

Kuan is also the group managing director of Hirotako Holdings Bhd, with an indirect stake of 22.5% comprising  38.84 million shares in the automotive parts maker.

According to a filing on Bursa Malaysia Securities on Tuesday, Chai had acquired the 6.5% stake comprising 10.8 million shares in Fajarbaru via an offmarket married deal on April 26. The transaction price was not  disclosed. Fajarbaru then announced his appointment to the board yesterday as executive director.

Meanwhile, Chai holds a 7.39% direct stake comprising 13.99 million shares in Sanbumi, which is mainly involved  in timber trading and processing, travel and tourism, and general trading. He also has an indirect 1.16% stake  comprising 2.2 million shares in Sanbumi.

According to Fajarbaru’s Bursa Malaysia filing, Chai, a businessman, has been involved in the timber industry  for over three decades in Kelantan, Pahang and Sabah.

He also has extensive experience in the hospitality industry and property development in the Klang Valley and  Sabah.

Apart from his directorship in Sanbumi, Chai also sits on the board of KLC Forest Plantation Bhd.

Sanbumi’s annual report stated that he started his career with Sin Cheong Heng Sawmill as a supervisor and later  as manager before venturing into timber extraction and sale of round logs on his own by setting up a small  family company in Kelantan and later in Pahang.

According to the annual report, he subsequently expanded his business into Sabah and has been the managing  director primarily responsible for the operations and financial management of Akalaju Sdn Bhd since 1994.

Meanwhile, Fajarbaru yesterday announced a 23.4% rise in net profit to RM6.55 million for its third quarter  ended March 31, 2010 (3QFY10) from RM5.31 million a year earlier on the back of a 26% rise in revenue to RM43.45 million from RM34.48 million. Basic earnings per share rose to 4.11 sen from 3.98 sen.

The company proposed a dividend of two sen per share. No third interim dividend was declared.

For the nine-month period just ended, net profit rose 42% to RM17.02 million from RM12.02 million a year earlier  while revenue fell 6.3% to RM121.27 million from RM129.47 million.


This article appeared in The Edge Financial Daily, April 29, 2010.