Oppression suit against TNG FinTech

Minority shareholders of Tranglo Sdn Bhd (TSB) have filed an oppression suit against TNG FinTech Group Inc, which acquired its 60 per cent equity in TSB from Ekuiti Nasional Bhd in October last year.

Defendants also named in the suit are Alexander Kong King Ong, Wong Wing Chi, TSB and its co-founder Sia Hui Yong.

Both Kong and Wong were approved by Bank Negara Malaysia to sit in TSB board as TNG FinTech’s representatives after the acquisition.

The suit came after a series of events that materially impeded business operations, including TNG FinTech’s rejection of TSB’s approved financing plan and unreasonable delay in signing up new bank partners.

TNG FinTech also attempted to instal Kong’s sister as a required signatory for all bank accounts maintained by TSB.

In addition, Kong and Wong rejected a dividend payout to shareholders despite the company’s healthy performance.

Six repeated requests by minority shareholders for a shareholder agreement to be signed were refused by TNG FinTech.

TNG FinTech is registered in the British Virgin Islands, based in Hong Kong and controlled by Kong.

Kong’s previous business ventures Next Millennium Sdn Bhd and Asia Travelmart Sdn Bhd were wound up. The former for not paying taxes and the latter for defaulting taxes and rental to Technology Park Malaysia Sdn Bhd.

Kong had a track record of two personal bankruptcies, one in Malaysia and another in Hong Kong.

The suit was brought about by Impiro Asia Ltd (IAL) and Mohammad Hassan Rasheed Gharaybeh, who collectively hold 13.6 per cent equity in TSB.

During the acquisition process, TNG FinTech, via Kong, had given commitment and assurances to Bank Negara that it will acquire the minority stake by Feb 1.

IAL director Simon Landsheer said banks in Malaysia had flagged and queried why IAL had a director with bankruptcy history.

“Now, the situation at TSB has worsened to the extent that the management and staff’s time is tied to responding to requests from Kong under the claim of executing his fiduciary duty to TSB.

“Requests such as information to be supplied in specific format and in a short turnaround time do not contribute to productive operations and as such TSB might miss its US$3 billion (RM12.57 billion) processing value target by next year,” he said.

“Based on Kong’s actions, attempts to remove and treatment of directors representing minority interest and his history, we have no confidence in TNG FinTech’s proposed initial public offering and the true value of the shares to be swapped,” said Landsheer.

The minority shareholders are seeking for dividends to be paid and TSB to be wound up due to the untenable working relationship with TNG Fintech.

We have no confidence in TNG FinTech’s proposed IPO and the true value of the shares to be swapped.

SIMON LANDSHEER

Impiro Asia Ltd director