Chen Cherchi, one of three sons of founder Chen Lip Keong appointed to senior executive positions at NagaCorp in early 2022, has been terminated as CEO – Finance and Treasury, just weeks after assuming a 6.6% stake in the company.
NagaCorp said via a Hong Kong Stock Exchange filing that Cherchi’s departure was effective as of 16 May 2024 and was done “to streamline the internal corporate governance and management structure to efficiently and effectively continue the Group’s business operations and adhere to the business strategies laid down by the Board.”
It also referenced “possible disagreement [by Cherchi] over the termination of his employment by the Board”, confirming Cherchi will no longer hold any position with the company or its subsidiaries and will cease to be a director of subsidiaries NagaGroup Global Limited and NagaCap Limited.
Cherchi was one of three sons of Dr Chen, who passed away in January, to be appointed to the company’s senior management team in 2022, with Chen Yiy Fon named CEO – Operations and Chen Yiy Hwuan CEO – Hotels.
Two months later Dr Chen transferred a controlling 69.23% stake in NagaCorp to his family trust, The Sakai Trust. He passed away in January of this year after a long battle with illness.
The removal of Cherchi as one of NagaCorp’s three CEOs comes just weeks after Hong Kong Stock Exchange filings revealed the dispersion of shares held by The Sakai Trust to the family, with Yiy Fon given the largest allocation of 368 million shares or 8.3% of NagaCorp, worth around MYR1 billion (US$213 million).
Cherchi and three other of Dr Chen’s sons were each granted 291 million shares or 6.6% of the company, worth around MYR800 million (US$170 million) for each son.
NagaCorp recently reported Adjusted EBITDA of US$80.4 million in 1Q24 on gross gaming revenues of US$145.4 million, up 23.7% year-on-year.
