KUALA LUMPUR: WCT Holdings Bhd is expected to make an announcement “very soon” on key management changes and business direction, says a source familiar on the matter last Friday.
In a surprise move, WCT announced last week managing director Taing Kim Hwa and Wong Sewe Wing, the two founders and major controlling shareholders, had disposed of their 19.7 per cent stake held through WCT Capital Sdn Bhd for an undisclosed amount to Tan Sri Desmond Lim, chairman of Pavilion REIT and Malton Bhd.
The move, some say, would pave the way for new changes and direction in the company, especially in terms of cost and efficiency of the company’s operations.
Last Friday, Malaysian Rating Corp Bhd (MARC) placed the debt and sukuk ratings of WCT, which saw the emergence of property and shopping mall tycoon Lim as its single largest shareholder, on the agency’s watch list.
“The MARCWatch developing placement reflects the potential change in the credit profile arising from the change in control and existing management at WCT,” said the credit rating agency.
“MARC is of the view the group’s asset monetisation and net debt reduction plans may be subject
to change by the new management.”
The rating action affects WCT’s RM1 billion 15-year medium-term notes and RM1.5 billion 15-year sukuk murabahah programmes whose ratings of “AA-” and “AA-IS, respectively, were affirmed with a “negative” outlook on October 7 last year.
WCT shares close one sen, or
0.56 per cent, higher at RM1.81 on Friday.