source:StartBiz, Thursday January 13, 2011

PETALING JAYA: The EGMs called to remove Tan Sri Muhammad Ali Hashim, the former chief of Johor's state investment arm Johor Corp (JCorp), from his position as chairman at three companies under the JCorp stable have been cancelled as Ali has relinquished his position from all the outfits.

The three companies Kulim (M) Bhd, Damansara Realty Bhd and KPJ Healthcare Bhd told Bursa Malaysia in separate statements yesterday that Ali had resigned as chairman and director of the companies.

Ali, 63, also resigned as chairman and director of QSR Brands Bhd, KFC Holdings (M) Bhd (KFCH) and Al-Aqar KPJ Reit, which are all companies under JCorp but where its stake is held via direct subsidiaries.

Replacing Ali as chairman at Kulim, Damansara Realty, KPJ Healthcare and Al-'Aqar KPJ Reit is the newly appointed president and chief executive of JCorp, Kamaruzzaman Abu Kassim.

Kamaruzzaman, 46, had also been appointed chairman and director at QSR Brands and KFCH, the companies said.

“The notice to shareholders on the cancellation of the EGMs will be issued in due course,” the companies said yesterday.

The shareholders' meetings were originally scheduled for Jan 17 (Kulim), Jan 21 (Damansara Realty) and Jan 26 (KPJ).

Damansara Realty added that the board of directors' meeting, which had been scheduled for tomorrow to discuss and deliberate the nomination of Kamaruzzaman as chairman of the construction and project management firm, had also been cancelled in view of the latest development.

The resignation of Ali is not totally unexpected as there have been rumours on disagreements, especially in recent months, between him and key personalities in Johor.

JCorp was thrown into the limelight recently when it received three offers for QSR Brands. The offers came from some big names in private equity, including the Carlyle Group and CVC Capital.

JCorp, which controls 53% of Kulim, later turned down all the offers. The company said it would not sell QSR Brands as well as KFCH because “more value'' could be obtained from these companies.

JCorp is saddled with huge debts, which totalled more than RM6bil as at Dec 31, 2009. Of this, RM3.6bil is due for repayment in the middle of next year. This has also helped stoke speculation that JCorp could be selling some assets.

Kamaruzzaman recently said that JCorp planned to refinance the RM3.6bil loan. The company was looking to sell land, property and some plantation assets to raise funds to settle part of the debt, JCorp said recently.

Kamaruzzaman was appointed to head JCorp at a board meeting chaired by Johor Mentri Besar Datuk Abdul Ghani Othman on Dec 9 last year.