SATANG - General Announcement
Company Name: SATANG HOLDINGS BERHAD
Stock Name: SATANG
Date Announced: 24/09/2010
Type: Reply to query
Reply to Bursa Malaysia's Query Letter - Reference ID: NM-100923-53429
Subject: Satang Holdings Berhad ("Satang" or "the Company")
Article entitled: "Satang faces boardroom tussle as MD reinstated"
Contents: We refer to the letter of query from Bursa Malaysia Securities Berhad dated 23 September 2010 in relation to the article appearing in The Malaysian Reserve on Thursday, 23 September 2010.
The Company wishes to announce that: -
1. Encik Malim bin Mohamed, the Managing Director of Satang Holdings Bhd was suspended from his position as Managing Director of the company by the Board of Directors on 11 August 2010.
2. The Board based its decision as such on an undated report of alleged irregularities presented to the Board on 11 August 2010 by the Audit Committee.
3. Upon the suspension, it was also resolved that a Management Committee be established to run the company's operation. The Management Committee was duly established.
4. Additionally, the Board resolved to engage an audit firm to conduct an in-depth investigation into the alleged irregularities. As a result, the firm of Ernst & Young was duly engaged.
5. On 21 September 2010 the Board revisited the issue of suspension. The Board noted that efforts must now be taken to finalise the company's reorganisation plan in order to end the company's PN17 status. The company must also deal with various projects as well as the creditors and debtors of the company in order to ensure a smooth operation of the company. It was also duly noted that it was during Encik Malim's management that the company was brought back to profit. It was also further noted that the allegations against Encik Malim, while serious, remain mere allegations until they are proven.
6. In order to ensure the smooth day to day operation of the company and upon Encik Malim's undertaking not to interfere with any investigation, it was, on 21 September 2010, resolved that Encik Malim's suspension be lifted on the conditions that:
a) The Management Committee appointed on 11 August 2010 continues to monitor Encik Malim; and,
b) The firm of Ernst & Young shall be retained as the audit firm to investigate the alleged irregularities.
This announcement is made on 24 September 2010.
Query Letter content: We refer to the above news article appearing in The Malaysian Reserve, page 1,
on Thursday, 23 September 2010, a copy of which is enclosed for your reference.
In particular, we would like to draw your attention to the underlined sentence,
which is reproduced as follows:-
"...Malim's reinstatement, who was suspended in mid-August..."
In accordance with the Bursa Securities' Corporate Disclosure Policy, we would
be grateful if you could furnish Bursa Securities with an announcement for
public release confirming or denying the above article and in particular the
underlined sentence after due and diligent enquiry with all the directors,
major shareholders and all such persons reasonably familiar with the matter
about which the disclosure is to be made in this respect. In the event you deny
the above sentence or any other part of the above reported article, you are
required to set forth facts sufficient to clarify any misleading aspects of the
same. In the event you confirm the above sentence or any other part of the
above reported article, you are required to set forth facts sufficient to
support the same.
Please furnish Bursa Securities with your reply within one (1) market day from
the date hereof.
TAN YEW ENG
Listing Division, Regulation
TYE/NMA c.c:- Head, Market Surveillance Department, Market Supervision
Division, Securities Commission (via fax)