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KUALA LUMPUR (July 27): Former PRG Holdings Bhd (KL:PRG) group managing director and executive vice-chairman Lua Choon Hann (pictured) has urged the group's two largest shareholders, Datuk Ng Yan Cheng and Datuk Sheah Kok Fah, to put aside their differences, warning that their prolonged dispute could jeopardise the company's future.
In an open letter to shareholders of PRG on Monday, Lua said the standoff between Ng, PRG's largest shareholder with a 16.6% stake, and Sheah, who owns 8.14%, would ultimately hurt the company, its shareholders, employees, customers and business partners if left unresolved.
Lua, who was group executive vice chairman from November 2013 until his resignation in September 2024, urged both shareholders to return to the negotiating table, saying constructive dialogue was crucial given their significant contributions to the company.
Ng and Sheah have been at loggerheads after Sheah called for the removal of Ng’s son-in-law, PRG group managing director Andrew Chan Lim-Fai, and requested an independent review of transactions involving Premier Construction (International) Sdn Bhd (PCI) and Premier De Muara Sdn Bhd (PDM) — a company linked to Ng and his family.
Sheah questioned a proposed RM37.17 million debt settlement between PCI and PDM, saying Ng’s interest in PDM was not disclosed. He made multiple attempts to remove Chan as group MD and pushed PRG to appoint an independent review of the transactions. His latest attempt included one to get on the board of PRG with two others.
PRG appointed PKF Covenant Equity Consulting Sdn Bhd for the independent review of the transactions, while Chan resigned on July 13 "in the best interest of the company".
The failed debt settlement deal between PCI and PDM led PCI to seek payment of RM64.24 million in alleged unpaid construction bills for the Picasso Residence project. PCI has since started winding-up proceedings against PDM.
Meanwhile, Ng has also initiated winding-up action against PRG after both sides failed to reach an agreement on restructuring RM21.22 million in shareholder advances owed to him.
Lua in the statement said the ongoing corporate battle would not deliver a sustainable outcome regardless of who prevailed, as both shareholders would continue to play key roles in PRG.
He further warned that a prolonged deadlock would distract management, weaken market confidence and erode shareholder value.
"Rather than continuing a prolonged confrontation, I hope they can work together to address the issues that have arisen, strengthen the company's governance framework and establish an effective system of checks and balances that will restore confidence in PRG," he said.
"Corporate governance should never be viewed as a contest between individuals. It should be viewed as a shared responsibility to protect the interests of all shareholders and ensure the company's long-term sustainability.
"The time has come to look beyond personal differences and focus on rebuilding PRG. The company deserves stability, its employees deserve certainty, and shareholders deserve leadership capable of working together to create value," Lua added.
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