MBI’s Tedy Teow re-emerges in Malaysia’s corporate scene in possible tie-up with Sand Nisko

• Sand Nisko said the HOA entered into by both parties was meant to set forth the intentions and commitments to establish a collaboration between both parties for the development, dubbed Meswara City.
• The project has three phases, with the first one involving building 294 units of two-storey shop offices, 36 units of two-storey shoplots, four units of two-storey drive-through restaurants, convention hall, cultural village and hypermarket.

KUALA LUMPUR (May 9): Teow Wooi Huat appears to have returned to Malaysia’s corporate scene. Stock exchange disclosure reveals that the businessman’s 519.5 acres land in Melaka has piqued the interest of Sand Nisko Capital Bhd to participate in a RM1.75 billion mixed-used development.

The 56-year-old, who is widely known as Tedy Teow and was wanted in Malaysia, had earlier this year been reportedly extradited to China from Thailand for his alleged involvement in fraud and dubious investment schemes.

At press time, it is unclear whether the MBI Group founder has cleared his name in all three countries.

Sand Nisko announced that its wholly owned Len Cheong Industries Sdn Bhd entered into a Heads of Agreement (HOA) with Evergreen More Sdn Bhd to express interest in participating in the project on three adjoining plots of leasehold lands in Alor Gajah, Melaka.

Evergreen More, which is 70%-owned by Wooi Huat and 30%-owned by Teow Chee Chow, owns these three lands and is desirous to work with a strategic partner in carrying out the development plan, Sand Nisko said in a stock exchange filing on Tuesday (May 9).

Past media reports indicated that Chee Chow is the son of Wooi Huat.

Checks with Companies Commission Malaysia (SSM) data on identification card number showed that both of the Evergreen More’s shareholders are the same individuals who are directors and shareholders of MBI Marketing Sdn Bhd.

Bank Negara Malaysia’s website shows that nearly five years ago on Aug 16, 2018, MBI Marketing pleaded guilty through its director Teow Ee Meng to the charge under Section 25(1) of Payment System Act 2003, and was sentenced to a fine of RM2.5 million.

Wooi Huat, meanwhile, pleaded guilty to one of his two charges and was sentenced to a fine of RM3 million.

Another entity that pleaded guilty was Mface International Sdn Bhd, which was founded by Wooi Huat according to BNM, and was sentenced to a fine of RM2.5 million.

SSM data shows that MBI Marketing is currently 85%-owned by Chee Chow and 15%-owned by Ee Meng, with Wooi Huat and a person by the name of Chiok Kian Chau as its directors.

Mface, which is in the midst of winding up, is 55%-owned by Ee Meng, while Kau Fong Seng and Wong Wen Torng own 22.5% each.

Apart from Ee Meng, Kau and Wong, Mface’s directors also include Ng Mei Wan and R Malathi Rajagopal.

Sand Nisko: Melaka projects to be developed in three phases

Sand Nisko said the HOA entered into by both parties was meant to set forth the intentions and commitments to establish a collaboration between both parties for the development, dubbed Meswara City.

The project has three phases, with the first one involving building 294 units of two-storey shop offices, 36 units of two-storey shoplots, four units of two-storey drive-through restaurants, convention hall, cultural village and hypermarket.

The second phase consists of 2,920 low- to medium cost residential units, while the third phase involves 45 units of two-storey bungalows and 660 units of two-storey semi-detached houses, together with a university campus.

Sand Nisko’s executive chairman Datuk Goh Soo Wee said the collaboration is in line with the group’s strategic direction to expand into property development from its existing furniture and construction businesses.

“We also intend to expand our construction and property development business via various initiatives such as strategic partnerships or joint ventures, tendering for construction projects, acquiring land banks in strategic locations for potential developments, and acquiring companies that have construction and/or property development projects.

“Sand Nisko will continue to explore new business opportunities to build a robust pipeline of projects,” said Goh, who controls 27.66% stake in the group via Mayapada Capital Sdn Bhd.

The group’s executive director Song Peng Wei said management will “review and improve” the existing development plan to ensure better viability and marketability of the project before entering a final agreement with Evergreen More.

“Subject to the necessary approvals from the relevant authorities, we will kickstart the RM1.75 billion project progressively with the first phase of commercial properties to build more traffic to the area, followed by low- and medium costs houses and finally luxury semi-detached houses and bungalows and a University Campus that can fit 10,000 students,” he said in a statement on Tuesday.

Sand Nisko has been loss-making over the past five fiscal quarters. The group posted a net loss of RM18.44 million for financial year ended Dec 31, 2022 (FY2022), versus a net profit of RM1.43 million in FY2021, with revenue falling 51.5% to RM27.90 million from RM57.47 million.

Shares of Sand Nisko jumped 16 sen or 61% to 42 sen on Tuesday, valuing it at RM104.82 million.

The stock was trending downwards in at least the past one year. It fell 32% year-to-date prior to the spike on Tuesday, and had declined by 30% last year.