Tuesday, November 15, 2011

Subject: Najib's son made director, firm's share price surges
Date: Monday, November 14, 2011, 2:38 AM

Najib's son made director, firm's share price surges
The price of shares in Harvest Court Industries Bhd, a previous little-known timber-products company, has risen to a nine-year high after the premier’s second son Mohd Nazifuddin Najib was appointed to its board of directors last month.

The share price hit RM2.14 about 4pm today, or 2,575 percent more than the 8 sen registered a month ago.

The price closed at RM2.13 later, having recorded a surge of 48 sen, or up by 29 percent over yesterday.

According to a Nov 8 report in The Edge Financial Daily, Nazifuddin and his business partner Raymond Chan had been appointed directors on Oct 28.

NONENazifuddin (left) was also said to have bought 2 million to 3 million shares - up to 1.7 percent of the total - on Nov 4, while Chan has reportedly acquired a 13.83 percent stake in the company.

Since then, the share price has surpassed the RM1 level to stay in the top volume list for many days.

Nazifuddin, 28, is the second son of Najib Abdul Razak and his first wife Tengku Puteri Zainah Tengku Eskandar. The couple divorced in 1987, following which Najib married Rosmah Mansor.

Chan, a businessman who is active in Sabah, owns substantial shares in Sagajuta (Sabah) Sdn Bhd, which developed the 1Borneo mall in Kota Kinabalu.

Nazifuddin is the chairperson of Sagajuta.

‘Financial problems’

It has been reported that Chan may inject a recycling company, 1Green Enviro Sdn Bhd into Harvest Court, which has struggled with weak financial performance over the last few years.

Harvest Court was reportedly listed by Bursa Malaysia as a PN17 company until December 2009.

(PN17 refers to companies facing financial problems.)

The company posted a net loss of RM2.7 million for 2010 compared to a profit of RM12.2 million a year earlier.

Its share had been hovering around 6-12 sen for several years until the impressive gains recorded over the past month.

Based in Port Klang, the company is involved in manufacturing timber products such doors.

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