Lysaght Galvanized: It's business as usual despite boardroom tussle

KUALA LUMPUR: Lysaght Galvanized Steel Bhd (LGS) managing director Liew Hoi Foo is confident that the current boardroom tussle will not affect the company's business operations.
Speaking to reporters after the company's AGM here yesterday, he gave an assurance that "business is running as usual" amid the feud among its board members.
"You can see from the track record, the company is still doing well in a competitive environment," he stressed.
Yesterday's AGM only saw three resolutions involving directors' fees payment and the re-appointment of auditors being tabled. All three resolutions were passed.
Meanwhile, the re-election of directors will only be tabled at its adjourned AGM next Tuesday after the board accepted the nomination for the election of two directors namely Chua Tia Bon and Ee Beng Guan last week, which was nominated by shareholders Chan Sum Yoon and Karin Leong Wai Feung.
To recap, the board reversed its decision to accept the directors nomination after seeking a second legal opinion.
"That is the board's decision. Management is not in a position to comment; we cannot speak on behalf of the board," Liew noted.
When asked if he is confident of being re-elected, he said "I've no comment, I leave it the shareholders".
Liew joined the LGS board in Feb 26, 2003 and was promoted to managing director in March 2004 following the retirement of the late Chew Kar Heing.
It was reported that the feud began when Kar Heing's eldest daughter Chew Meu Jong opposed a corporate exercise involving a share split and a bonus issue and free warrants. Liew is Meu Jong's brother-in-law.
Worth noting is that independent and non-executive director Wee Kee Hong resigned last week ahead of the AGM, citing personal reasons.
Operationally, Liew acknowledged that LGS' business outlook has slowed down significantly, but noted that a weaker ringgit has helped cushion the overall impact.
"Based on enquiries that we see, it's slowing down, and now the quantity asked for is much smaller. These are all signs of a slow down," he said.
Liew pointed out that a slowdown in property launches has also had an impact on the company given that its products are used for housing development.
He expects the bulk of its business volume will still come from the local market at 70% and 30% for the overseas market. The company's production capacity is currently running at 100%, while galvanizing capacity is about 33%.
For the financial year ended Dec 31, 2014 (FY14), LGS' net profit went down 25.83% to RM11.2 million compared with RM15.1 million in FY13.
Lysaght (Malaysia) Sdn Bhd is the largest shareholder of LGS, with a 55.14% stake.
Liew owns an indirect stake of 73.24% in LGS through Lysaght (Malaysia) Sdn Bhd, Ingli Sdn Bhd and family memebers' direct interest. He also holds a 1.76% direct stake.