ILB seeks legal advice on minority shareholder lawsuit to block commercial land acquisition

KUALA LUMPUR (Aug 3): ILB Group Bhd (formerly known as Integrated Logistics Bhd) is seeking legal advice after a minority shareholder BT Investment Capital Ltd filed a lawsuit against ILB board members, in an attempt to block an acquisition that could dilute shares owned by existing shareholders.

“ILB wishes to clarify that the Company will always consider corporate proposals involving the businesses of the ILB Group, in the best interest of ILB and all shareholders.

“The Company is seeking legal advice and will announce further developments to the above matter accordingly,” ILB said in a filing with Bursa Malaysia on Wednesday (Aug 3).

The lawsuit filed by Low Bok Tek on behalf of BT Investment Capital, is aimed at stopping or cancelling the proposed acquisition by ILB of nine parcels of commercial land with shop lots in Seksyen 19, Petaling Jaya, Selangor for RM15.9 million, via the issuance of 37.78 million new shares in ILB.

The other 8 defendants are ILB's Chairman Datuk Karownakaran @ Karunakaran Ramasamy, Chief Executive Officer Tee Tuan Sem, Executive Director Makoto Takahashi; Non-Executive Directors Wan Azfar Wan Annuar, Datuk Wan Hashim Wan Jusoh, Soh Eng Hooi and Jamilah Kamal; and Impian Nuri Sdn Bhd.

BT Investment Capital said the proposed issuance of the new shares will enlarge the number of issued shares to 232.81 million from the current 195.03 million, and would dilute existing shareholding. It contended that it also does not create value for shareholders, as ILB’s earnings per share and any dividends, rights, allotments or other distributions that ILB may declare will be negatively impacted.

ILB’s shares were untraded on Wednesday. The stock last closed at 49 sen, with a market value of RM95.56 million.