8 hours Ago By DIYANA ISAMUDIN
KUALA LUMPUR: Sapura Resources Bhd shares have not been traded on Monday and Tuesday, indicating a lack of market activity.Investors may be avoiding the stock due to governance issues, including the investigation into its former managing director Datuk Shahriman Shamsuddin over potential conflicts of interest, an industry observer said.A reported power struggle between Shahriman and his brother Tan Sri Shahril Shamsuddin in the investment holding company, Sapura Holdings Sdn Bhd, may be further discouraging investor interest, the observer added.
"These factors have resulted in negligible trading activity. It's a pity because minority shareholders are the ones losing out, especially when the company sits on good assets," the observer said.Sapura Resources had RM835.
1 million in assets as at its third quarter ended Oct 31 2024.The stock was last traded at 21.5 sen last Friday for a market capitalisation of RM55.
7 million. Year-to-date, it was down 4.44 per cent.
On March 10, Sapura Resources announced the completion of an internal investigation into its former managing director concerning potential breaches of the Companies Act 2016 related to conflict of interest matters.The company had lodged a formal complaint with the Companies Commission of Malaysia and filed a police report on the issues raised, as required.While Sapura Resources has not publicly disclosed the contents of the investigation report to maintain the integrity of ongoing regulatory reviews, the timing of these events may have influenced investor sentiment.
However, it has not announced any official suspension of its stock trading.The investigation into Shahriman was initiated after concerns were allegedly raised about his involvement with Explorer Group Sdn Bhd, an aviation company considered to be in competition with Sapura Resources's aviation businesses.At that time, he was Sapura Resources managing director and also a shareholder and executive director of Explorer Group.
Shahriman had been on leave since Sept 11 last year and resigned from his position on Oct 30.Court documents reviewed by Business Times cited a legal opinion alleging concerns over a joint venture formed in April 2024 between Explorer Group, which is his personal investment vehicle. and Royal Jet LLC, an Abu Dhabi-based aviation services provider.
A year earlier, Royal Jet had signed a heads of agreement with Sapura Resources to acquire its aviation business while Shahriman was still the company's managing director. The legal opinion further alleged that Shahriman intentionally withheld critical corporate information from Sapura Resources' board regarding the viability of a land development project at Subang's Sultan Abdul Aziz Shah Airport.This assessment, conducted by an external advisor, was funded by Sapura Resources.
According to the legal opinion, it was alleged that despite having knowledge of the project's viability, Shahriman misled or influenced Sapura Resources' board into shutting down the aviation business, citing poor viability.During the period, Explorer Group signed a memorandum of understanding with Royal Jet in December 2023, followed by a joint venture agreement in April 2024.© New Straits Times Press (M) Bhd.
