Nik Fazila is new CCM boss

Nik Fazila Nik Mohamed Shihabuddin has been appointed as the new Chemical Company of Malaysia Bhd (CCM) group managing director.

Her appointment will take effect upon the completion of the demerger of CCM Duopharma Biotech Bhd (CCMD) from CCM.

The 51-year-old, who is CCM's chief operating officer and chief financial officer, succeeds Leonard Ariff Abdul Shatar who has been elected to spearhead CCMD as group managing director.

Nik Fazila, an Economics graduate from Flinders University, South Australia, is a chartered accountant with over 25 years of experience in accounting, finance, business assurance and various corporate transactions.

She joined CCM in March 2012 as finance director and was appointed group COO/CFO in May 2016.

Before that, Nik Fazila served in multiple senior management positions in three Main Board public listed companies.

CHANGES AT CCMB BOARD

As for the CCM board of directors, Datuk Normala Abdul Samad will remain as non-independent and non-executive chairman while Datuk Seri Zaini Ujang will be re-designated to independent non-executive director from non-independent non-executive director.

Khalid Sufat will remain as senior independent non-executive director while Leong Chik Weng will maintain his position as independent non-executive director.

Holding their positions as non-independent non-executive directors are Datuk Azmi Mohd Ali and Datin Paduka Kartini Abdul Manaf.

Meanwhile, Tan Sri Siti Sa'diah Sh Bakir, who is currently an independent non-executive director of CCM, will step down from the Board and will continue to serve the Board of CCMD.

Datuk Nik Moustpha Nik Hassan, another independent non-executive director, will also step down from the CCM Board and will be appointed to the CCMD Board.

All changes will take effect upon the completion of the demerger, expected by this year end.

CCM executes corporate exercises

In August 2017, CCM announced two major corporate proposals, which include a de-gearing exercise involving the proposed sale of its three parcels of land in Shah Alam; a proposed private placement of up to 10 percent of the issued share capital in CCM which was completed on Oct 13, 2017, and the identification of other non-core assets to be divested.

The proposals also include the demerger of CCMD from CCM via a proposed distribution of its entire equity interest in the former. The placement exercise is expected to improve CCM's earnings and in turn, enhance shareholders' value as the partial repayment of RM35 million bank borrowings is set to result in interest savings of approximately RM1.7 million per annum.

CCM has also completed the acquisition of 10 percent equity interest in CCM Chemicals Sdn Bhd (CCMC) from Lanjut Setia Sdn Bhd and another 10 percent equity interest in CCMC from Permodalan Nasional Berhad (PNB) last Nov 24, for a total purchase consideration of RM40 million which was funded by proceeds from the placement exercise and internally generated funds.

Watch Astro AWANI's recent interview with Leonard Ariff on the Marketplace: