REG - Aseana Prop Ltd - Restructuring of Management

Aseana PropertiesAnnouncement

30/04/2019 12:10

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.




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