Aseana Properties Limited Restructuring of Management (5845X)
April 30 2019 - 7:07AM
UK Regulatory
TIDMASPL
RNS Number : 5845X
Aseana Properties Limited
30 April 2019
Aseana Properties Limited
("Aseana" or the "Company")
Restructuring of Management and Strengthening of Board
Aseana Properties Limited (LSE: ASPL), a property developer in
Malaysia and Vietnam listed on the Main Market of the London Stock
Exchange, announces that the Company will be restructuring the
management of the Company and will strengthen the composition of
its Board. Following the announcement made by the Company on 22
March 2019 on the termination of the Management Agreement between
Ireka Development Management Sdn Bhd ("IDM") and the Company, the
Board has been deliberating on the various options available to it
in managing the executive and administrative functions of Aseana.
These options include identifying a replacement for IDM as the
development manager, identifying and appointing senior executives
to oversee the operations of Aseana, and also identifying and
appointing divestment specialists to lead the orderly disposal of
the assets.
After thorough deliberation of the various options available,
the Board considers the internalisation of the management of Aseana
as the most practical and expeditious option moving forward. This
will involve the hiring of a full-time Chief Executive Officer
("CEO"), and a small, but dedicated team to manage the key
functions of the Company. The CEO may choose to outsource certain
functions of the Company in order to minimise the fixed overheads.
During the transition period, IDM will be providing assistance to
the CEO to minimise any disruptions to the day-to-day operations of
the Company.
The Board will now commence an active and thorough search for a
suitable CEO, and will conduct the necessary interviews and
discussions with suitably qualified candidates. The Board considers
the ideal CEO candidate to be one with relevant experience in the
real estate markets of Malaysia and Vietnam, with a strong track
record in management and divestment of real estate assets. Aseana
has approximately 87% of its Net Asset Value in Malaysia, and the
remaining 13% in Vietnam. The Board will make an announcement on
the appointment of the CEO in due course once a suitable candidate
has been identified.
Given the current situation facing the Company, the Board also
deems it critical to strengthen the capability and capacity of the
Board to lead the divestment activities of Aseana and to enhance
governance oversight. Aseana will be looking to add two members to
its current three-member Board. The Board regards the independence
of the Board from any major shareholders of the Company as a key
operating principle, and as such have identified several
well-qualified candidates as Independent Non-Executive Directors.
The Board will make appropriate announcements as soon as decisions
have been made.
The Board expects to put in place and effect the changes
outlined above before the transition period between IDM and the new
internal management of the Company expires on 20 June 2019. IDM has
indicated that it would be prepared to work with the Board and be
flexible in respect of the notice period of termination to
facilitate a smooth and orderly transition of the operations of
Aseana.
Unfortunately, the changes above will undoubtedly have an impact
on the disposal timeline of the assets announced by the Company
earlier. The Board will review the realisation plan and will make
appropriate announcements in due course.
For further information:
Aseana Properties Limited Tel: +603 6411 6388
Chan Chee Kian Email: cheekian.chan@ireka.com.my
N+1 Singer Tel: 020 7496 3000
James Maxwell / James Moat (Corporate
Finance)
Sam Greatrex (Sales)
Tavistock Communications Tel: 020 7920 3150
Jeremy Carey / James Verstringhe Email: jeremy.carey@tavistock.co.uk
Notes to Editors:
London-listed Aseana Properties Limited (LSE: ASPL) is a
property developer investing in Malaysia and Vietnam.
Ireka Development Management Sdn Bhd ("IDM") is the exclusive
Development Manager for Aseana. It is a wholly-owned subsidiary of
Ireka Corporation Berhad, a company listed on the Bursa Malaysia
since 1993, which has over 52 years of experience in construction
and property development. IDM is responsible for the day-to-day
management of Aseana's property portfolio and the divestment of
existing properties.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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