The Foundation of Socialpreneurship
Legendary entrepreneur, philanthropist and investor Tey Por Yee or better known as Larry, is one of the man behind the startup network of Socialpreneur Growth Fund, which invest in social business concept startups and growth stage financing for innovation and technology-related companies in Europe, as well as within the Asia Pacific region.
Larry, who left Nexgram Group and joined Gomif Partners in 2016, has won respect from global venture capital leaders for pushing socialpreneurship to do more to boost global economic growth and helping the world to take sustainable business model seriously. Larry call this concept the next generation of business model, or industrialisation 4.0.
This story is inspired by the mysterious businessman who decided to denote his career towards nurturing social responsible startups. What inspired him to build “right-profit” business model could be found from his personal experience, especially his recent step backs in his home country, Malaysia.
Larry has seen much betrayal and dark side of some old school business model, where greed has breed corruption and over shadowed humanity, integrity and business ethic. These practices are beyond governance issues, and unfortunately made the norm for many of today’s profit-only business world.
Who is Nexgram Group?
Nexgram Holdings Berhad or Nexgram Group, is a public listed multinational conglomerate corporation based in Kuala Lumpur, Malaysia. The company was co-founded by Larry and his partners in year 1999 and went IPO in year 2005. Larry was 28 when he listed his company. According to the company website, as of to date, Nexgram Group operate in Telecommunication, Security & Surveillance, Software Development, Property Development, Industries, Business Advisories and Investment activities.
In year 2016, Larry left Nexgram Group and denote his time on nurturing social business concept in the startup world.
During year 2012-2016, Larry has secured the survival of Nexgram prior to his departure, by completing the company long-term plan of business restructuring & diversification. The long time loss making business units were divested; while new proven businesses with healthy track record were acquired.
Despite intensive corporate blackmails and business attacks from his business enemy, Larry fulfilled his duty of taking care of stakeholders’ interest before his departure.
Nexgram today is ran by professional managers. The company property development division Nexgram Land Sdn Bhd has since secured extension of commencement with off take customer Angkasa. The company has until April 2017 to commence the project, and year 2021 to complete. Nexgram Land is also engaging professional Project Management Company (PMC) to carry out the negotiation with several China Government Linked Corporations (GLCs) or main contractors, which fit with Angkasa final approval for development order (DO) during this period. The PMC is also responsible to secure financing for the projects.
The other subsidiaries are handled by respective CEOs and management, with common goal to weather any economy down turn and fight for the bottom line to generate values for stakeholders.
How did Nexgram Business blackmail start?
The story started off in June 2012, when Chong Ket Pen which owns 15.5% shares of Protasco Bhd was removed from his executive director position on 25 June 2012 by the former owner of Protasco Bhd (according to Bursa Malaysia announcement). Chong Ket Pen asked the former Protasco Bhd owner to gives him 6 months’ time to find investors and he found Larry and Adrian (Ooi Kock Aun) through Singapore banker in October 2012. On 3rd November 2012, Chong Ket Pen signed and engaged Global Capital as consultant to secure investors to buy over Protasco Bhd, and to refer foreign asset for Protasco Bhd to purchase in order to diversify Protasco Bhd business from reliance on government contracts.
Because of Nationalism and a warm heart to save a Chinese ethnic businessman, as encouraged by the Singapore banker, Larry Tey Por Yee together with his partner, Adrian Ooi Kock Aun, raised fund from investors and took over construction company Protasco Bhd in December 2012. Both acted as the care taker for their investors and leave the operation to Chong Ket Pen. Chong is the only executive director to propose, conduct due diligence, and convince Protasco Bhd board of directors for the deal. 2 years later on 2014, Chong Ket Pen produced a blame in order to take away Protasco Bhd full control.
Chong cannot wash away the trail that his career was saved by Larry and Adrian; also to cover up his mistakes during the asset acquisition process as well as his own legacies. The blackmails hence manufactured and escalated until today.
Reliable sources have suggested that ever since Chong silently back stabbed Larry and Adrian, series of unfortunate event was instigated by Chong to paint negative news on Larry and Adrian, in hope to cover up Chong’s own wrong doings, including hiding the truth. Some foreign research house has since lined up the evidence through academic studies. Such as http://klse.i3investor.com/blogs/oldschoolcorruption/111518.jsp
Nexgram’s flying letters 2014-2016 – What happened?
On year 2011-2012, Nexgram has seen conventional IT business saturated and have planned to diversify into Property business since year 2012. The company have purchased a piece of land in Cyberjaya for mix development in year 2013, and have been carefully design and build the development concept as this is new business to the company. Nexgram later secured off-take contract from Angkasa, a government linked agency which has access to millions of government servants with funds under their service. The project has since further extended Nexgram relationship with Angkasa through another off-take agreement signed on housing development near Putrajaya.
With the off-take agreements, the sales of the property would not have any issue. China government linked (GLCs) contractors have shown interest, including provide turn key solution to finance the projects, as well as potential partnership. The project only requires a local bank guarantee without even the use of bank’s funds, a straight forward business deal.
"Chong Ket Pen's finger print every where", media public relation
Issue comes when Larry, which was the Executive Director of Nexgram Group, was back stabbed by his own investee Chong Ket Pen using Protasco Bhd resources. The blackmails including potential having Chong’s lawyer sending defamation letters and send business spies to influence authorities so as to threaten or delay Larry’s business progress with bankers, customers and suppliers.
According to reliable sources, “Trails of newspaper manipulation to character assassinate Larry and Adrian were found. Series of blackmail is to further delay and destroy the victims’ businesses so as to dilute their defense capability and capacity to counter fight back Chong Ket Pen’s malicious attacks”. This is the strategy of a coward by causing internal and external conflicts of the victims’ stakeholders, while Chong gets away with his pray – Protasco Bhd. (Some Internet trails refers to: https://borneostreetnews.wordpress.com/ )
As for Nexgram, certain officers in the authorities have obtained information which was twisted to simulate potential miss steps. Market was told Chong Ket Pen is funding the quest to find potential faults, including manufacturing faults, in order to discredit his victims.
For example, the disposal of foreign loss making subsidiary actually saved the company from suffering further losses. The funds were used to finance operating expenses as well as part of the investment in income generating business in logistic, Transeaways Shipping.
The property project which professional consultants successfully secure Angkasa contract, was also being tainted ruthlessly by making up question about the pre-development cost without looking into the quantum and size of the projects. Both Cyberjaya and Putrajaya projects came with RM1.1 billion and RM300 million GDV, and were fully off-taken or sold to Angkasa. Chong by using The Edge Daily, to the extend of blackmailing on the subject matter trail could be found here: https://borneostreetnews.wordpress.com/2016/11/28/tey-por-yee-the-edge-property-malaysia-peculiar-blackmail-busted/
According to reliable sources, Angkasa project bankers were officially and unofficially being blackmailed and blatantly sanctioned to delay and deplete Nexgram resources, clearly interfering normal business operation of public listed company with objective to prolonged the commencing or to cause the failure of the projects. A divestment of cost baring material to fund investment in income generating construction business also being twisted.
During the period towards end of year 2015, Nexgram corporate plan to form a strong group entity by offering general offer on Ire-Tex Bhd, was also being blackmailed to the extreme manner.
Paid spies reports were followed closely by Chong Ket Pen, as well as parallel updates to relevant officers in the authority to consume Nexgram resources such as people and time spent in compliances and paperwork, directly and indirectly.
These finger prints in the dark happens to be in line with Chong Ket Pen’s plan to cause harm to his victim.
Nexgram has since took the initiative to engage Ferrier Hodgson to conduct special audit on the said allegations and flying letters. The board of Nexgram has since fully accepted the report findings where all commercial decisions are fully accounted and no economic losses was discovered. In other words, nothing was lost. Nexgram board dissolved the special committee and chairman urges the management to focus on business as the entire blackmailing process have caused company business delayed and stakeholders suffered.
One man standing to protect the stakeholders – 2014-2016
During the fiasco and blackmail, one man is standing still to take the heat from year 2014-2016. The legendary investor Larry Tey Por Yee despite being bombard with newspaper defamation, defended for Nexgram.
Larry saw through the restructuring processes, made sure stakeholders interest are protected and soft landed the impact on the group business. Larry also prevented potential government to government conflict by saving the foreign government contract under foreign subsidiary, which was sold and taken over by parties who can safeguard client’s national interest.
During the same period, Tey Por Yee also pare down his personal loan and liquidated his assets to honor his commitments.
After more than 18 months of standing in front of battlefield taking the hits himself, Larry made sure all stakeholders are taken care off, and he has since divested his interest in Nexgram and step down in year 2016, systematically and orderly.
In Chinese proverbs, Larry believes in the moral of “be the First Man Defense and takes the Heat, and be the Last Man to Enjoy the Glory.
Nexgram 2016 onwards.
Today Nexgram Group is governed by professional board of directors, with professional CEOs running each business units. There is no urgency to further change the group business direction as the existing business is good enough for the group to expand organically the next 5 years.
The company has secured enough projects to sustain year 2017-2018, and have since exercise the company right to raise working capital from 132D share placement.
Market was told Chong Ket Pen couldn’t further tarnish Larry Tey Por Yee’s name. However, as the former owner and director of Nexgram, market was told newspapers and certain officers in the authorities were recently instigated by Chong Ket Pen to “force through and made up news” to continue discredit Larry and Adrian, what ever it cost. The company shareholders meeting would be an avenue for Chong Ket Pen to splash his money, using fake proxies and hired agents to stir and twist information.
The small but yet powerful minority shareholders should know the true story about what happened to their investment in Nexgram. A healthy company is being blackmailed and made to be sacrificed. It’s important to see the true picture from the bird view. Most importantly knowing where the newspaper and source of authority blackmails were originated. So next time when newspaper or turbulence arises, minorities know where to look for clue.
Every bad deed one pursue, there is reciprocation. The potential massive abuse of Protasco Bhd resources by using newspaper, legal and certain officers in the authorities, have since raised more questions about the master mind (Chong Ket Pen), and the motive behind the lies he tried to spread. Some of these publicities have actually back fired and surfaced the problems within Chong Ket Pen and Protasco Bhd. Time will tell what will happen to the conspired.
Maybe the series of unfortunate event would have inspired the young entrepreneur Tey Por Yee to pursue the interest in socialpreneurship – a new term to nurture social responsible businesses. Despite his departure and return to International venture capital scene, his believes and legacies in building social responsible business model would ensure the survival of Nexgram in the next industrial revolution. Perhaps that is the best gift given to Nexgram stakeholders when they look back 5 years later.
As commented by party knowing the matters, Larry and Adrian may not be saint, but they saved Chong Ket Pen. Chong cannot bury away this truth. A person who did this to his own savior and did dirty deed to create damage to innocent minority shareholders of Nexgram is definitely not a good guy.
steveooikp
are you larry?
2016-12-21 07:48