LCD to hold talks with new shareholder on appointing CEO

LCD Global Investments said its board of directors will be discussing with its new majority shareholder JTrust Asia whether a new chief executive officer should be appointed.

"The Board and JTrust Asia note further that, as a matter of corporate governance, any decision relating to the strategy or business of the company or the appointment of any senior member of management will have to be made by the Board as a whole, and not just the directors nominated by JTrust Asia," it added.

Any name change for LCD will also require the approval of shareholders at a general meeting, the group said. LCD made these comments in a filing with the Singapore Exchange following an open letter issued by a Hong Kong-based institutional investor last Friday calling for greater clarity from JTrust Asia about its intentions for LCD.

JTrust Asia acquired a 29.5 per cent stake in LCD from the controlling Lum family at 30 Singapore cents per share this month.

LCD executive chairman David Lum has stepped down as a senior executive director while his son Kelvin Lum, who is LCD's managing director, will resign within six months.

Tokyo-listed finance holding company JTrust Co Ltd set up JTrust Asia last October to explore business opportunities in South-east Asia.

Its president and CEO Nobuyoshi Fujisawa and general manager Shigeyoshi Asano have since been appointed as the new executive directors of LCD Global.

But Pyrrho Management, a Hong Kong family office fund, took issue with the lack of relevant experience of the two newly appointed executive directors in property or hospitality.

The fund also questioned if a change in LCD's business or any divestment of assets is in the works, given a proposed name change for the group to JTrust International Ltd.

LCD said that JTrust has advised the Board that its intentions for the company were clearly set out in its announcement on Sept 19.

According to its press release on Sept 19, JTrust aims to gain knowledge in real estate development and the hotel business in the region.

It also plans to expand LCD's real estate and amusement businesses and to promote the property fund management business at LCD by "utilising information network in South-east Asia that JTrust Asia cultivated and Knight Frank's real estate-related network".

LCD owns several hospitality assets, the Zone X amusement chain, as well as a deemed 44 per cent interest in Knight Frank Singapore through an 80 per cent direct stake in Cheong Hock Chye & Co.