Shahriman denies ‘blowing hot and cold' over collateral for Sapura tower
KUALA LUMPUR : Sapura Holdings Sdn Bhd director Shahriman Shamsuddin today insisted he was not inconsistent as regards using the group's Sapura@Mines property as collateral to fund its business ventures.
Testifying in his petition to wind up Sapura Holdings on grounds of a breakdown of mutual trust with elder brother Shahril, Shahriman said he had objected to using the property as collateral for the development of the group's flagship office tower.
In his petition, Shahriman had claimed that his 'strained relationship' with Shahril had been 'exacerbated' by the differing opinions they voiced over Project Apex at a special board meeting of Sapura Resources Bhd (SRB) on Jan 31, 2023.
Project Apex was the codename given by SRB for its joint venture with KLCC Holdings Sdn Bhd to develop Permata Sapura, a 52-storey office building in the KL city centre.
Lawyer S Rabindra, representing Shahril, then referred Shahriman to the minutes of that meeting.
Rabindra: At various board meetings and in relation to loan proposals that we've already gone through, you voiced strong concerns and protested the use of Sapura@Mines as collateral for Sapura Holdings' financial assistance, particularly for Permata. Correct?
Shahriman: Yes, for Permata.
Rabindra: Yet, at the board meeting on Jan 31, 2023, you were comfortable with Sapura Resources using Sapura@Mines as collateral for new projects. Is that correct?
Shahriman: For other projects that were going to yield (returns).
Rabindra: So there was a risk, according to you, that using Sapura@Mines as collateral for Permata could lead to a loss of the property, but here, you were quite happy to suggest using the same property for new ventures, despite the same risk. Correct?
Shahriman: Not correct.
Rabindra: But it is the same risk. There is still the possibility of losing the property.
Shahriman: We know the negative risk of Permata. But there were other projects that we could have gone into.
Rabindra: I suggest to you that you were blowing hot and cold with respect to the use of the Sapura@Mines property as collateral.
Shahriman: I disagree.
Shahriman also agreed that, in essence, he had wanted SRB to exit Project Apex, while Shahril wanted to remain in it.
Rabindra: I'm suggesting to you that this was a difference of opinion between two directors of a public-listed company about what they see as being in the best interest of the company. Do you agree?
Shahriman: Agree. That was a difference of opinion.
Rabindra: And this was openly discussed at the Jan 31 board meeting. Correct?
Shahriman: Yes.
Rabindra: So it essentially came down to a commercial disagreement between two directors on a matter of business judgement based on what is best for SRB?
Shahriman: On a matter of business judgement, a difference of opinion, yes.
Sapura Holdings is the parent entity of over 40 subsidiaries valued at RM832 million, including the publicly-listed SRB.
Both Shahril and Shahriman hold a 48% stake each in Sapura Holdings, with the remaining 4% owned by Rameli Musa.
In the petition filed last September, Shahriman claims that an irreparable breakdown of mutual trust and confidence between him and Shahril necessitated the dissolution of Sapura Holdings.
However, Sapura Holdings, Shahril and Rameli, all named as respondents, oppose the petition, contending that the company was never intended to be a family business and that dissolution would be neither just nor equitable.
The hearing before Justice Leong Wai Hong continues.
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