Avillion Bhd, the integrated travel, hotel, and property group linked to former finance minister Tun Daim Zainuddin, experienced a notable 8.3% decline in its share price during the early morning trade session on Tuesday. This downturn followed the charging of Tun Daim Zainuddin in court on Monday, a development that caught the attention of investors.
Avillion and its 23 subsidiaries were among the 71 assets listed in the Malaysian Anti-Corruption Commission’s (MACC) charge sheet against Tun Daim.
As a consequence, Avillion’s shares faced a significant dip, trading down half a sen at 5.5 sen as of 9.43 am on Tuesday. The total shares exchanged amounted to 1.35 million, with the market capitalisation standing at RM57.14 million.
Over the past year, Avillion witnessed a substantial 38.9% decline in its share price from nine sen on January 30, 2023. The company’s stock performance has been on a downward trajectory since reaching a peak of 78.5 sen in 2011, hitting its lowest point of three sen on March 19, 2020.
Avillion recorded losses from financial year 2016 (FY2016) to FY2023, with a net loss of RM4.76 million for FY2023. In the six-month period ending September 30, 2023 (1HFY2024), the net loss widened to RM3 million, compared to a loss of RM2.37 million for the same period a year earlier.
Daim’s son, Datuk Md Wira Dani Abdul Daim, held the largest stake in the loss-making group with a 21.82% ownership through Ibu Kota Developments Sdn Bhd and Daza Holdings Sdn Bhd.
Formerly known as Reliance Pacific Bhd, Avillion saw a change in substantial shareholders in April 2016 when Wira Dani and his mother Toh Puan Mahani Idris emerged as significant stakeholders. However, Mahani exited in 2020, transferring her 26.3% equity to a Maybank Trustees Bhd account.
On Monday, Tun Daim pleaded not guilty to a charge under Section 36(2) of the MACC Act 2009, related to the non-disclosure of assets. The charge encompassed several assets, including a bank account, seven vehicles, 38 companies, and 25 properties, some linked to companies owned by Tun Daim.
Among the companies mentioned in the charge were Ibu Kota Developments Sdn Bhd, Maya Seni Holdings Sdn Bhd, Menara Ampang Sdn Bhd, Dream Cruiser Sdn Bhd, Landbelt Corporation Sdn Bhd, Avillion Bhd, Avillion Hotel Group, Admiral Cove Development Sdn Bhd, and Avillion Hotels International Sdn Bhd.
The MACC charges have injected uncertainty into Avillion’s market performance, and investors are closely monitoring the developments surrounding the company in the wake of legal proceedings against Tun Daim.
