The Securities Commission Malaysia has launched an investigation into potential breaches of the Capital Markets and Services Act 2007 and the Rules on Take-overs, Mergers, and Compulsory Acquisitions at Rapid Synergy Berhad, following a complaint by a concerned citizen and minority shareholder.
The complaint alleges that members of the YU Syndicate, who control the company, have committed material and fraudulent misrepresentation by failing to disclose related party Chan Weng Fui (aka Daniel Chan), who holds at least 14% (15,756,300 shares) of Rapid Synergy. The complainant also alleges that Chan Weng Fui is an employee and/or proxy of YU KUAN HUAT and YU KUAN CHON.
The 2021 Annual Report of Rapid Synergy Berhad shows that YU KUAN CHON and CHAN WENG FUI alone collectively own 39.1597% of the company, which is above the 33% threshold. The complainant believes that a group of declared YU Syndicate related party members cannot collectively exceed 33% of the outstanding shares of Rapid Synergy Bhd without making an offer to buy from all shareholders.
The complaint also alleges that CHAN WENG FUI does not have the financial capability to have purchased such an amount of shares he is holding and that the trading records will show the transfer of shares came from Kenanga Investment in earlier years that were reportedly held in proxy for YU KUAN CHON.
Furthermore, the complaint states that in an earlier reprimand by the Securities Commission of Malaysia dated 28 September 2021, the group of related parties exceeding 33% on 29 April 2019 was identified specifically as and did not include CHAN WENG FUI, leading investigators to suspect that the group deceived investigators by failing to report him as a related party shareholder.
The complainant believes that members of this YU Syndicate group have conspired to intentionally deceive the Securities Commission and the entire market, and that the potential improprieties surrounding the shareholdings of Rapid Synergy and YNH Property require a complete and detailed review by competent authority. The complainant also requests that the investigation is treated as anonymous due to concerns of being targeted by the YU Syndicate members.
In recent weeks, YNH Property Bhd Directors have been attacking the media and critics with police reports and paid distribution of fake news claiming criminal intimidation against those who stand against the YU Syndicate.
The Securities Commission Malaysia has taken the lead in investigating these potential breaches and ensuring that the minority shareholders and the company’s assets are protected. The complainant has copied the report to as many relevant authorities that may take interest in this type of activity.
 Rapid Synergy Berhad 2021 annual report, Statement of Director Shareholdings (31 March 2022) https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=217090&name=EA_DS_ATTACHMENTS
 Rapid Synergy Berhad 2021 annual report, Top 30 Shareholder list numbers 2, 4, 6, 30
 IMASPRO Corporation Berhad Profile of Directors, page 12 https://www.imaspro.com/pdf/generalmeeting/ICB_Annual_Report_2022.pdf
 SC Administrative Action Item 7. https://www.sc.com.my/regulation/enforcement/actions/administrative-actions/administrative-actions-in-2021