SBI Offshore explains move to name Mirzan Mahathir as interim CEO

If Mr Mirzan leaves, there will only be four employees left at the firm. PHOTO: THE STAR

Catalist-listed SBI Offshore last Saturday explained its move to appoint Mr Mirzan Mahathir as interim chief executive, a mere three days after the company's annual general meeting where he was not re-elected to the board, in response to queries from the regulatory arm of the Singapore Exchange (SGX).

These reasons include the fact that the company's management had raised concerns to the nominating committee (NC) on the abrupt departure of Mr Mirzan as non-independent executive chairman, especially given that he has been overall in charge of the company's reverse takeover (RTO) of the Berlitz group of companies, and key professionals in the RTO have opined that his strategic input is "invaluable" to the continued RTO process.

The management said it believes that Mr Mirzan, who is the eldest son of former Malaysian prime minister Mahathir Mohamad, is instrumental in ensuring that the oil and gas support services provider is able to complete the outstanding matters relating to the RTO, as well as to fulfil the company's legal obligations in relation to the deal.

Furthermore, if Mr Mirzan leaves, there will only be four employees left at the firm, it said.

"The company will be adversely understaffed. As such, the management had recommended to the NC to re-engage Mr Mirzan for two months up to the end of August 2020, and proposed a revised remuneration of $12,000 per month, to be commensurate with his continued contribution mainly to the RTO matters," it said.

The nominating committee, after considering the importance of the RTO to the company and its shareholders, and the need for adequate staffing with proper experience to ensure proper running of a listed company, coupled with the unlikelihood of finding a replacement CEO in a short time with similar experience and up-to-date knowledge of the ongoing RTO, as well as willingness to be engaged on a very short-term basis, decided to allow Mr Mirzan's appointment.

The RTO project is currently in an advanced stage, and Mr Mirzan has been deeply involved in leading commercial negotiations with the vendor and driving the transaction forward while SGX is assessing the pre-admission notification.

The company said its sponsor has no objection to the appointment of Mr Mirzan as the interim CEO.

Following the completion of the RTO, existing directors of the company will relinquish their positions as directors of the company.

None of the company's personnel or employees, including Mr Mirzan, have been identified as executive officers of the enlarged group, and there are no discussions on the retention of service of existing personnel of the company, including Mr Mirzan, post-reverse takeover.

Mr Mirzan was appointed chairman of SBI Offshore in 2014 and was responsible for the group's overall management and operations, as well as its strategic planning and development.

He is a substantial shareholder of the company.

THE BUSINESS TIMES

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A version of this article appeared in the print edition of The Straits Times on July 06, 2020, with the headline SBI Offshore explains move to name Mirzan Mahathir as interim CEO. Subscribe