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25 March 2023. Saturday
KUALA LUMPUR (March 24): Five shareholders of Classita Holdings Bhd, formerly known as Caely Holdings Bhd, have failed in their attempt to block the lingerie maker from convening an extraordinary general meeting (EGM) to vote on the company’s proposed rights issue pending the conclusion of their lawsuit.
This came after the High Court here on Friday (March 24) dismissed the shareholders’ injunction application with costs awarded to Classita, according to the company’s bourse filing.
“Upon dismissal of [the application], the plaintiffs’ counsel had orally applied for the Erinford injunction (injunction pending the conclusion of an appeal) but the same has been dismissed by the court,” added Classita in the filing.
When contacted by The Edge, Classita confirmed that the company is to proceed with its EGM to vote on the group’s proposed rights issue fixed on March 27.
The five shareholders who filed the lawsuit and injunction application are Datuk Seri Tee Yam, Datuk JP Low Kok Chuan, Leow Boon Kin, Zhang Jia and former executive chairwoman Datin Seri Jessie Wong Siaw Puie.
Their lawsuit pertained to seeking the court’s permission to initiate legal action on behalf of Classita against the group’s board as well as a vendor for breach of fiduciary duties, fraud, unjust enrichment and conspiracy to injure the group in relation to its acquisition of shares in Kepayang Heights Sdn Bhd and other related transactions.
Besides this, the shareholders are also seeking the court’s permission to act on behalf of Classita in a suit filed in the Ipoh High Court, plus another suit filed in the Shah Alam High Court, and an appeal in the Court of Appeal.
Collectively, the five shareholders own 67.2 million shares or a 19.82% stake in Classita. Tee Yam is the largest shareholder among the five, holding 49.38 million shares or a 14.57% stake.
Classita’s proposed rights issue involves the issuance of up to 965.4 million shares on the basis of five rights shares for every two existing shares held, together with up to 579.2 million warrants on the basis of three warrants for every five rights shares subscribed for.
Shares in Classita ended one sen or 6.9% higher at 15.5 sen, giving the company a market capitalisation of RM50.91 million.
