KUALA LUMPUR (May 20): M3 Technologies (Asia) Bhd said two shareholders have filed a lawsuit to stop the mobile services provider from undertaking an employees share option scheme (ESOS) or any other corporate exercise that will serve to dilute their shareholding.
“The company would seek legal advice on the matter and the company will make the announcement on material development in respect of this as and when necessary,” M3 Tech said in a stock exchange filing.
The two substantial shareholders are Lim Seng Boon, who stepped down as the group’s managing director three months ago, and Voon Sze Lin. They have a combined shareholding of 13.5% in M3 Tech, with Lim controlling a 7.4% stake and Voon holding a 6.15% stake.
Lim and Voon had last month sought to convene an extraordinary general meeting (EGM) to remove four M3 Tech directors and to appoint four others to the board. They wanted to remove executive chairman Mark Chew Shin Yong, non-independent and non-executive directors Datuk Chai Woon Chen and Ng Kok Heng, as well as executive director Nicholas Wong Yew Khid.
The move came a week after seven shareholders collectively holding 146.1 million shares rejected M3 Tech’s proposed private placement — of up to 232.15 million new shares or 30% of share capital to raise RM9.82 million — at an EGM on April 19.
Lim and Voon had also called for the termination of the ESOS, comprising 231.38 million share options (equivalent to close to 30% of the group’s existing issued share capital of 773 million shares) at an exercise price of five sen.
M3 Tech had proposed the private placement and ESOS in March. The group had previously completed a private placement of 128.54 million shares in January, equivalent to 20% of the group’s issued share capital then.
Besides Lim and Voon, another substantial shareholder of M3 Tech is XOX Bhd, which holds a 9.39% stake — including a 5.23% stake held via XOX (HK) Ltd.
Shares of M3 Tech closed unchanged at 5.5 sen today, valuing the group at RM39 million.
