Shares of Avillion Bhd, a prominent integrated travel, hotel, and property group, witnessed a decline of 8.3% or half a sen in early Tuesday trading. This downturn occurred in the wake of heightened investor attention following the charging of former finance minister Tun Daim Zainuddin in court on Monday. Avillion, along with 23 of its subsidiaries, was listed among the 71 assets included in the Malaysian Anti-Corruption Commission’s (MACC) charge sheet against Daim.
By 9.43 am on Tuesday, Avillion’s shares had depreciated to 5.5 sen with a trading volume of 1.35 million shares, resulting in a market capitalization of RM57.14 million. Over the past year, the company has experienced a 38.9% decline in share price from nine sen, marking a continuous downward trend since its peak in 2011.
Avillion, formerly known as Reliance Pacific Bhd, is renowned for its chain of luxury properties across Malaysia and Indonesia. Despite the company’s prestigious portfolio, including Avillion Port Dickson and Avillion Cameron Highlands, it has struggled financially, incurring losses from FY2016 through FY2023.
For FY2023, Avillion reported a net loss of RM4.76 million, with losses widening to RM3 million in the first half of FY2024. The involvement of Daim’s son, Datuk Md Wira Dani Abdul Daim, as the group’s largest shareholder, adds complexity to the company’s narrative. Wira Dani has held a substantial stake in Avillion since April 2016, further intertwining the company’s fate with the recent legal developments surrounding Daim.
The leadership of Avillion has also seen recent changes, with Pee See Hoe resigning as CEO in January, and Fong Wai Leong stepping in. The board, chaired by Tan Sri Dr Samsudin Hitam, a former civil servant who served under Daim, is navigating these tumultuous times as the company faces a pivotal moment in its history.
In the legal proceedings, Daim pleaded not guilty to charges under the MACC Act 2009, which include the nondisclosure of assets ranging from bank accounts and luxury vehicles to a multitude of companies and properties, some of which are linked to Avillion.
As the situation unfolds, stakeholders and market watchers are keenly observing how these developments will further impact Avillion’s market position and the broader economic landscape.
