Saturday, April 5th, 2025

Battle for CDL: Family Feud Pits Kwek Leng Beng Against Son in Boardroom Power Struggle 

A fierce power struggle is unfolding at City Developments Limited (CDL) as executive chairman Kwek Leng Beng clashes with his son, CEO Sherman Kwek, over control of the board.

The Battle Lines: Father vs. Son

Kwek Leng Beng, CDL’s long-time leader, is fighting an “attempted coup” allegedly led by Sherman and key directors.
Sherman counters that the dispute stems from corporate governance concerns, particularly the influence of Dr. Catherine Wu, a longtime adviser to the chairman.

CDL’s majority board supports Sherman, raising questions about Kwek Leng Beng’s future at the helm.

The Key Power Players
The outcome may rest on the support of other Kwek family members, particularly:

Quek Leng Chan (Malaysia’s second-richest man), Quek Leng Chye, and Kwek Leng Kee—who control key stakes in Hong Leong Investment Holdings (HLIH), which holds 49.3% of CDL.

HLIH’s voting control could determine the board’s fate, with its largest shareholder, Davos Investment Holdings, controlled by key Kwek cousins.

If Davos sides with Sherman, he gains an advantage; if they back Kwek Leng Beng, he retains control.
What’s at Stake?

CDL’s share price plunged after the boardroom rift went public, with analysts downgrading ratings due to governance uncertainty.

The dispute could lead to a shake-up at the top, with potential outcomes including a board backing Kwek Leng Beng, Sherman, or even another family member.

Thank you

Top Stock Picks: Southern Score Builders and SkyWorld Development Poised for Bullish Breakouts in Malaysian Market

Comprehensive Analysis of Malaysia’s Trending Stocks – CGS International Report Comprehensive Analysis of Malaysia’s Trending Stocks CGS International Report | December 10, 2024 Introduction The latest report by CGS International provides an in-depth analysis...

Goldwind Science & Technology (2208.HK): Technical Buy Signal Points to Bullish Uptrend Continuation

Trending Insights from CGS: Retail Research Analysis – December 2, 2024 Broker Name: CGS Date of Report: December 2, 2024 Overview of Asian Corporate Reforms and Their Impact The latest report from CGS delves...

Greencove Sdn Bhd: Leading the Charge in Sustainable Development with Key Contract Acquisitions

Date of Report 24 October 2024 Broker UOB Kay Hian Company Overview Greencove Sdn Bhd (GSB) is a subsidiary involved in construction and development projects, focusing on site clearance, piling, and structural works within...