ILB Group seeks legal advice on a lawsuit


KUALA LUMPUR: ILB Group Bhd is seeking legal advice after its minority shareholder, BT Investment Capital Ltd, filed a lawsuit against the company and its board members to stop an acquisition that could dilute the shares held by the existing shareholders.

The minority shareholder is trying to block ILB’s proposed acquisition of nine plots of commercial land with businesses in Petaling Jaya by issuing 37.78 million new ILB shares.

In a filing yesterday with Bursa Malaysia, ILB said the board had no knowledge of the reason and circumstances leading to the lawsuit.

The logistics services company said the nine defendants named in the lawsuit are ILB, its chairman Datuk Karownakaran @ Karunakaran Ramasamy, chief executive Tee Tuan Sem, executive director Makoto Takahashi, non-executive directors Wan Azfar Wan Annuar, Datuk Wan Hashim Wan Jusoh, Soh Eng Hooi and Jamilah Kamal, as well as vendor Impian Nuri Sdn Bhd.

In a separate statement issued by BT Investment yesterday, he said the proposed issuance of the new shares would increase the number of shares issued to 232.80 million from the current 195.02 million.

“This decision will dilute the existing shareholding and will not create shareholder value because ILB’s earnings per share and any dividends, rights, awards or other distributions that ILB may declare will be adversely affected,” it said. he declares.

On July 15, the ILB board announced the impact of the dilution on Bursa Malaysia.

Through the proposed acquisition, BT Investment shared that its shares would be diluted to 9.33% from the current 11.2%.

After the acquisition, the minority shareholder explained that the transaction would also create a new sole shareholder in the form of the seller of the commercial plot, Impian Nuri, who would hold a 16.67% stake in ILB.

Going further, BT Investment Capital pointed out that the 37.78 million new shares offered equaled 19.37% of ILB’s current shareholding, under the general 20% mandate. The minority shareholder estimated that the proposed acquisition did not provide recurring revenue for the group, as the commercial land resulted in a gross income of 2.2% for ILB.


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