By Khairie Hisyam
Some 67.79 million SP Setia shares were traded off-market at RM3.95 per share yesterday, likely to be the last block owned by president and chief executive officer Liew Kee Sin as he steps down from the company after 18 years.
Upon his departure chief operating officer Voon Tin Yeow would become acting president and chief executive officer of SP Setia.
Earlier this week SP Setia homebuyers received a farewell message from Liew to mark his exit after 18 years helming the developer into Malaysia’s forefront developer.
“As I leave SP Setia in (Voon’s) good and capable hands I do so with the assurance that the group has never been in a more solid position, and we have all of you to thank for this,” said Liew in the message.
“The amazing milestones that we have achieved over the years would not have been possible without your continuous support and I sincerely hope this will continue with Voon at the helm.”
Succession plan scrapped?
Teow Leong Seng
Interestingly chief financial officer Teow Leong Seng also tendered his resignation on the same day that Liew did, raising the question of whether SP Setia’s previously announced succession plan was scrapped.
To recap, SP Setia’s previously announced succession plan was for current chief operating officer Voon Tin Yow to step up as chief executive officer while Teow was to take over Voon’s position as number two.
However the plan seems scrapped with Teow’s departure and Voon only assuming an acting position upon Liew’s departure.
News of Liew’s retirement comes two weeks after Eco World Development Holdings, a company he is closely linked to, saw a surge in its share price leading to an unusual market activity (UMA) query from Bursa Malaysia.
Eco World Development Holdings was renamed from Focal Aims Holdings Bhd following a reverse take-over exercise that saw Eco World Development Holdings Sdn Bhd make an offer of RM230.7 million for 65% of the company’s shares — among the purchasers is Liew Tian Xiong, the elder Liew’s son whose purchase is financed by the elder Liew and his wife.
This sparked talk of whether the elder Liew is conflicted between his position at the helm of SP Setia and his part in Eco World’s manoeuvres, especially given market speculation that Eco World is Liew’s personal vehicle as a fresh start after leaving SP Setia.
However, when pressed by KiniBiz in September Liew said: “I want to retire, enough of work!”
KiniBiz previously examined Eco World’s rapid emergence in a three-part series here.
Notably this month, marking the end of his nearly two decades with SP Setia, would have been when his last put option for the remaining 2.76% block would be due.
At 11.35am today, SP Setia was up 1 sen to RM2.92. The counter closed 1 sen lower at RM2.91 yesterday.
Last of Liew’s shares sold
Liew Kee Sin
The 67.79 million shares sold yesterday represent the last of Liew’s 200.5 million shares following the management agreement with major shareholder Permodalan Nasional Berhad (PNB) in 2012.
This block corresponds with Liew’s last put option from the agreement signed on Jan 20, 2012. Liew exercised the option on March 21 and the sale to PNB should net him RM267 million.
When the agreement was inked, Liew had 11.27% or 200.5 million shares in SP Setia. At RM3.95 per share, the progressive sale of those shares would have totalled RM791.9 million.
To recap, in 2011 PNB launched a takeover of SP Setia, offering RM3.90 per share after crossing the 33% threshold via direct and indirect holdings.
However SP Setia board, led by Liew, thought the offer fundamentally undervalued the company and reportedly thought RM4.20 would be a more accurate reflection of SP Setia’s value.
The offer was then raised to RM3.95 per share by January 2012 or some RM6 billion to increase its stake in SP Setia to just below 70% via its two funds Yayasan Pelaburan Bumiputra and Skim Amanah Saham Bumiputera.
In the aftermath, PNB struck a deal with Liew whereby the latter would stay for three years following the takeover — which meant March 2015 at the latest — in addition to having the option to sell his shares at RM3.95 per share to PNB in several tranches.
However in January this year Liew announced his resignation after 18 years with the company. His last day would be April 30, 2014, leaving the company about one year before the three-year period would have ended.
“With my children all growing up and starting out on their own career paths, I am looking forward to spending more time with them, mentoring and guiding them,” said Liew of his resignation.
You must be logged in to post a comment.