HHRG Bhd (formerly Heng Huat Resources Group Bhd) which specialises in biomass materials manufacturing and furniture production has today (Nov 19) successfully opposed an application for an interlocutory injunction to restrain the group from asserting control of its 51% subsidiary MG Furniture Sdn Bhd.
Recall that the ACE Market-listed company had on July 26 been temporarily excluded from control over MG Furniture pursuant to an ex parte order obtained by a minority founding shareholder.
The ex parte order was today set aside following findings by the Penang High Court that, among others, that there were material non-disclosures in the ex parte application.
With the Court’s decision, HHRG is now well-positioned to bring stability and implement the much-needed governance reforms at MG Furniture.
The group’s immediate focus is on rebuilding MGF’s financial health and strengthening its corporate governance in order to be in line with its broader commitment to operational excellence and delivering the set bottom lines.
HHRG through its solicitors have already contacted the plaintiffs – Ch’ng Chen Mong, Tan Poh Cheng, Ch’ng Boon Sin and Cfamillie Holdings Sdn Bhd – for a meeting to appraise MG Furniture’s business, financials and operations since July 26.
“This decision represents a corporate turning point for MG Furniture,” commented HHRG’s CEO Fong Chee Khuen.
“We are now able to fulfil our responsibilities as the majority shareholder. Our priority is to drive sustainable growth, restore profitability and ensure operational transparency at MG Furniture.”
The decision came after MG Furniture posted significant profit declines attributed to operational inefficiencies and a lack of strategic oversight during the profit guarantee period.
HHRG’s immediate priorities include implementing robust governance measures, addressing operational bottlenecks and re-aligning MG Furniture’s trajectory to meet the group’s overall aspirations.
“This was not an easy journey but it underscores HHRG’s dedication to safeguarding shareholders value,” contended Fong. “We are optimistic about MG Furniture’s future under HHRG’s stewardship and are confident in our ability to turn challenges into opportunities.”
At the close of today’s trading, HHRG was up 0.5 sen or 4.35% to 12 sen with329,400 shares traded, thus valuing the company at RM115 mil. – Nov 19, 2024
