Masterskill announced that Dato' Sri Dr Edmund Santhara has officially resigned from his role as CEO of the group. Meanwhile, Siva Kumar, one of its existing major shareholders, will be appointed as the executive director.

Not a surprise. Dato' Sri Dr Edmund Santhara’s resignation from his CEO role is not entirely surprising as it was reported last year that he was suffering from medical complications and subsequently underwent a surgery. Our channel checks also indicated that the group was actively looking for a successor since mid-2012 to take over his helm. Going forward, he will be designated as a non-independent and non-executive director on the board.

New CEO. Previously a director at Masterskill prior to its listing in 2006, Siva Kumar is currently the second largest shareholder after Dato' Sri Dr Edmund Santhara with a 12.2% stake in the group. He is also a substantial shareholder of numerous private and public companies including Hong Leong Capital and Penang-based SAM Engineering & Equipment. He has vast experience in the finance industry as a former investment banker and was involved in various corporate and financial advisories.

Positive move. With his expertise and past experiences in the education and finance industry, we are positive on the appointment of Siva Kumar as the new CEO who could bring in new financial and cultural perspectives and potentially turn around the company and steer it back in the black. Hence, we see this as a positive move to address the group’s succession issue, which we believe has capped its share price performance over the last year.

Source: RHB