ILB seeks legal advice on minority shareholder lawsuit to block commercial land acquisition

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KUALA LUMPUR (August 3): ILB Group Bhd (formerly known as Integrated Logistics Bhd) is seeking legal advice after minority shareholder BT Investment Capital Ltd filed a lawsuit against board members of ‘ILB, in an effort to block an acquisition that could dilute the shares held by existing shareholders.

“ILB would like to make it clear that the Company will always consider business proposals involving the activities of the ILB Group, in the best interests of ILB and all shareholders.

“The company is seeking legal advice and will announce further developments in the above matter accordingly,” ILB said in a filing with Bursa Malaysia on Wednesday August 3.

The lawsuit filed by Low Bok Tek on behalf of BT Investment Capital, seeks to stop or nullify ILB’s proposed acquisition of nine commercial land plots with store lots at Seksyen 19, Petaling Jaya, Selangor for 15.9 million RM, via the issue of 37.78 million new ILB shares.

The other 8 defendants are ILB Chairman Datuk Karownakaran @ Karunakaran Ramasamy, Managing Director 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; and Impian Nuri Sdn Bhd.

BT Investment Capital said the proposed issuance of the new shares would increase the number of shares issued to 232.81 million from the current 195.03 million and dilute the existing shareholding. He argued that it also does 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.

ILB shares were not trading on Wednesday. The stock last closed at 49 sen, with a market value of RM95.56 million.

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