Sunday, 28 September 2014

Protasco's Puzzling Purchase (7)

Three independent directors of Nexgram resigned according to announcements on the Bursa website (here, here and here).

The three directors were unanimous in their reason to resign:

"Because of the newspaper report on Protasco Berhad filing legal suit against a director of the Company."

Quite remarkable to give a development in another company as the reason for ones resignation.

The Star published an interesting article regarding this same matter: "More than meets the eye".

"The resignation of three Nexgram Holdings Bhd directors, following a suit by Protasco Bhd against Nexgram founder Tey Por Yee, has raised some eyebrows within industry circles. Observers are questioning the reasons for the directors resigning from Nexgram right away following the suit. The directors in question are Leou Thiam Lai, Ungku Razak Ungku Rahman and Yap Siok Teng. Nexgram, in announcing their resignations to Bursa Malaysia, said that they had resigned “because of the newspaper report on Protasco filing a legal suit against a director of the company”. It, however, did not elaborate. Questions are being raised as to whether there is something else brewing in Nexgram which caused this succession of events."

For the time being it seems Nexgram is "rather light" on independent directors. That however didn't stop the company (listed on the ACE market) from making another announcement, from The Star again:

"Nexgram, which started off as a mobile applications and platform provider, said the proposed acquisition would allow it to “participate in Fiji’s economic development and growth process, which is still currently in the early stages of development” and that the proposed deal would be financed by a combination of internal funds and/or bank borrowings."

I don't immediately see the synergy between a Malaysian based tech company and a Fiji based developer.

Regarding Protasco, an interesting situation seems to be that the company is not taking any steps to remove Tey Por Yee and Ooi Kock Aun as directors, despite filing a legal suit against them for "breach of their fiduciary and statutory duties including the duty to disclose their interest in the transaction, conspiracy to defraud Protasco and the making of secret profit".

Apparently, both Tey and Ooi are still welcome to stay on as directors of Protasco and to join board meetings.

There is quite an interesting web of connections between Protasco, Nexgram and PT Inovisi Infracom Tbk. To be continued.


  1. From Nexgram's annual report, the 3 independent directors had been appointed directors from 2005 to 2008. After that long relationships, why the abrupt resignation.

  2. Dirty board room fight. Just sold recently. Buy other bluechip.

  3. Those journalist who doubts the events and level of governance have done wonderful work. 1 year after the dubious allegations, many truth have surfaced. It's amazing how the robber who rob his bosses company, put a blame, and afraid of truth prevailing, have induced others to harrass his bosses. Such as using Tan Sri Liew Kee Sin's down lines.

    Liew is good at playing stories, but he went too far by letting his staff proxies enters another businessman house uninvited. That is no manners and impolite way to do business.

    Wintoni, another small IT company which makes no sense to even consider hostile, made it the year 2015 mysterious case of the year. Liew's finger print everywhere, escalated from scammer CKP, another con man who stolen a public listed company from his owners.

    Check out some journalist investigation about Liew involvements:

    To know the true stories, give these editors some credit and courage, which they are so called warned by the money-oriented bosses not to write about Liew, which is their "pay master". That explains the not so independent business paper The Edge Daily have worked for Liew and his other pay masters in gang-rape style corporate crime doing. Those followed Wintoni shares would expect the management to sue Raymond Yap Kok Weng and Chang Khim Wah, both Tan Sri Liew Kee Sin's generals, for illegal manipulate share price and breaking law not doing general offer while parties working in concert, with over 30 people from Liew's X and current darling, SP Setia and Eco World, have past 40% shareholding while manipulating share price. It would be a simple ask-and-buy corporate deal if Liew would have did it properly, but his generals choose to break the law. Law broken, it's matter of time all involved would be reprimand and prosecuted.

    Arrogant could win and loose a battle. Do it properly, else pay the price. Salute the journalist who willing to tell the truth beyond The Edge Daily conspiracy.

    If talk about governance, look deep and lengthen into surface corporate nonsense. One will find interesting details and stories behind each cunning lies. Old age doesn't mean they are matured. Some are as childish as one could imagine.