Fu Yu Corporation’s co-founders, Ching Heng Yang, Tam Wai and Ho Nee Kit, on Jan 22, announced their retirement from the company.
Ching, Tam and Ho established the company in 1978 and have grown the company to become one of the largest manufacturers of precision plastic products in Asia today.
According to the company, Ching, Tam and Ho were “recently presented with an opportunity to lower their shareholders in Fu Yu, enter retirement and hand the reins over to a new leadership who they believe can bring value to the group.”
On Jan 18, an investor with funds managed by Pilgrim Partners purchased a 29.8% stake in Fu Yu Corporation, just 0.2% below the 30% general offer trigger.
See: Pilgrim Partners-managed VCC assumes control of Fu Yu Corp in $58.3 mil deal
Ching, who used to hold 11.81%, is left with a direct stake 2.06%; Ho, who held 12.88% before the sale, is left with 3.13%; Tam, who held 12.84%, is left with 3.09%. In addition, all three men have deemed stakes of around 2% each.
“While the founders’ share sale transactions are personal investment decisions, the board understands that the founders had deliberated at length before transacting their shareholdings in the company with a suitable buyer who would appreciate the value and strengths of the group’s business and future potential,” read the statement.
“Following the sale of a portion of their shares in Fu Yu to Pilgrim Partners (Asia) the founders’ interests remain aligned with the other shareholders of the company as they will retain a combined shareholding of 8.32% in Fu Yu,” it adds.
On that, the group says it will be “business as usual” following the retirement of their founders.
Fu Yu’s current CEO and executive director Hew Lien Lee will continue to oversee the group’s operations together with his core management team in Singapore, Malaysia and China.
On Jan 18, Fu Yu had also appointed Choo Boon Tiong and Seow Jun Hao David to the board following the founders’ retirement.
Shares in Fu Yu closed 0.5 cent higher or 1.8% up at 29 cents on Jan 22.
