Sslee blog

Official complaint to SC and Bursa to reject JAKS RI

Sslee
Publish date: Mon, 20 Jul 2020, 09:34 PM
Sslee
0 233
This is my blog

dari:

Lee Soon Sheng

kepada:

Aduan Bursa ,
aduan@seccom.com.my

cc:

info@jaks.com.my,
      @jaks.com.my,
mswatch@mswg.org.my

   

tanggal:

23 Jul 2020 11.15

subjek:

Official complaint in seeking Bursa and SC to investigate and reject JAKS revise Rights Issue

Dear SC and Bursa,

Please investigate under CHAPTER 6 - NEW ISSUES OF SECURITIES:

6.02: Admission

1. The Exchange will exercise discretion over the listing of new issues of securities on its Official List and may approve or reject applications for the listing of such new issues of securities, as it deems fit

Please reject JAKS application renounceable rights issue of new JRB Shares together with Warrants as per Exchange considers amongst others, whether-

  1. The listed issuer has satisfactory/unsatisfactory corporate governance practices;
  2. The listed issuer has/has not addressed all situations of conflict of interests satisfactorily; or
  3. The application by the listed issuer undermines public interest.

Refer Bursa announcement:

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3068126

On 22 May 2020, Kenanga IB had, on behalf of the Board, announced that the Company proposed to undertake a renounceable rights issue of new JRB Shares together with Warrants to raise proceeds of up to RM160.92 million (“Original Proposed Rights Issue with Warrants”).

Kenanga IB, on behalf of the Board, wishes to announce that after further deliberation, the Board has resolved to revise the following key terms of the Original Proposed Rights Issue with Warrants:-

 i. maximum gross proceeds to be raised to RM289.64 million from RM160.92 million; and

 ii. Minimum Subscription Levels to be raised to RM200.00 million from RM130.00 million.

(Collectively referred to as the “Revisions”)

This announcement is dated 13 July 2020.

The revise proposal: For illustrative purposes only, the Proposed Rights Issue with Warrants may now entail an issuance of up to 1,287,286,584 Rights Shares together with 643,643,292 Warrants based on the above mentioned enlarged number of 804,554,115 Shares in issue, a revised illustrative entitlement basis of 8 Rights Shares together with 4 Warrants for every 5JRB Shares held and a revised illustrative issue price of RM0.225 per Rights Share, the issue price of the Rights Shares is now assumed at RM0.225 per Rights Share throughout this announcement, which represents a discount of RM0.275 or approximately 55.0% to the TERP of JRB Shares of RM0.50, calculated based on the 5-day VWAMP of JRB Shares up to and including 7 July 2020, being the latest practicable date prior to this announcement (“LPD”) of RM0.9443.

The exercise price of the Warrants is now assumed at RM0.50 per JRB Share throughout this announcement, which represents the TERP of JRB Shares of RM0.50 calculated based on the 5-day VWAMP of JRB Shares up to and including the LPD of RM0.9443.

The original proposal: For illustrative purposes only, the Proposed Rights Issue with Warrants may entail an issuance of up to 402,277,057 Rights Shares together with 201,138,528 Warrants based on the abovementioned enlarged number of 804,554,115 Shares in issue, an illustrative entitlement basis of 2 Rights Shares together with 1 Warrant for every 4 JRB Shares held and an illustrative issue price of RM0.40 per Rights Share, the issue price of the Rights Shares is assumed at RM0.40 per Rights Share throughout this announcement, which represents a discount of RM0.40 or approximately 52.94% to the TERP of JRB Shares of RM0.85, calculated based on the 5-day VWAMP of JRB Shares up to and including 19 May 2020, being the latest practicable date prior to the date of this announcement (“LPD”) of RM1.0706.

The exercise price of the Warrants is assumed at RM0.85 per JRB Share throughout this announcement, which represents the TERP of JRB Shares of RM0.85, calculated based on the 5-day VWAMP of JRB Shares up to and including the LPD of RM1.0706.

Below summary of recent placement shares, award of shares under LTIP and Warrants issued

  1. On behalf of the Board, UOBKH wishes to announce that 58,465,313 Placement Shares were issued  (RM 0.70) pursuant to the Private Placement and were listed and quoted on the Main Market of Bursa Securities on Tuesday, 28 May 2019 marking the completion of the Private Placement.
  2. Award of Shares under the Restricted Share Plan of JAKS Resources Berhads (JRB or the Company) Long-Term Incentive Plan 38,709,760LTIPShares. Date of Offer of LTIP Shares: 30January 2019
  • Executive Director/Chief Executive Officer: 27,625,760
  • Senior Management: 10,645,800Other
  • Selected Employees/Executives: 438,200
  • Closing market Price of the Company’s shares on the Date of Offer: RM0.510per share
  1. On behalf of the Board, UOBKH wishes to announce that 102,428,430 Warrants issued (RM 0.25) pursuant to the Rights Issue of Warrants were listed and quoted on the Main Market of Bursa Securities with effect from 9.00 a.m. on Thursday, 20 December 2018, marking the completion of the Rights Issue of Warrants.
  1. On behalf of the Board, Kenanga IB is pleased to announce that the Placement has been completed on 30 March 2018 following the listing of and quotation for 49,631,200 Placement Shares (RM 1.38) on the Main Market of Bursa Securities.
  1. On behalf of JRB, Kenanga IB is pleased to announce that the Private Placement has been completed on 24 March 2017 following the listing of and quotation for 43,836,100 Placement Shares (RM 1.36) on the Main Market of Bursa Securities today.

A.  The listed issuer has unsatisfactory corporate governance practices:

Offence 1: For the past placement shares JAKS did not complied to: Section 6.15: Announcement of Placees' details

As soon as practicable after the placement of securities and before the listing of such new issue of securities, the Principal Adviser must submit to the Exchange the following:

  1. The final list (broken down by each placement agent) setting out the names, home or business addresses, identity card/passport/company registration numbers, occupations/principal activities and securities account numbers of all the placees and the ultimate beneficial owners of the securities placed (in the case where the placees are nominee corporations or funds), and the amount and price of securities placed to each placee; and
  2. A confirmation from the Principal Adviser that to the best of its knowledge and belief, after having taken all reasonable steps and made all reasonable inquiries, the details set out in the final list of placees in subparagraph (a) above are accurate and the issue or placement exercise complies with the requirements as stated in this Chapter.

Refer AGM held on 26 June 2018

Authority to allot shares pursuant to Sections 75 and 76 of the Companies Act 2016 “THAT pursuant to Sections 75 and 76 of the Companies Act 2016 and subject always to the approval of the relevant authorities, the Directors be and are hereby empowered to issue shares in the capital of the Company from time to time and upon such terms and conditions and for such purposes as the Directors may deem fit provided that the aggregate number of shares issued pursuant to this resolution does not exceed 10% of the total number of issued shares of the Company for the time being and that the Directors be and are also empowered to obtain the approval for the listing of and quotation for the additional shares so issued on Bursa Malaysia Securities Berhad and that such authority shall continue in force until the conclusion of the next Annual General Meeting of the Company.

Offence 2: The issues of 38,709,760 LTIP Shares on 30January 2019 and 58,465,313 Placement Shares on 28 May 2019 clearly did not comply with corporate governance practices “the aggregate number of shares issued pursuant to this resolution does not exceed 10% of the total number of issued shares of the Company and shall continue in force until the conclusion of the next Annual General Meeting of the Company

Offence 3: Case: SC2020-10946 & Bursa Ref: CC/38/20: Official complaint on JAKS AGM minutes reporting did not comply with SC Corporate Governance 

 B. The application by the listed issuer undermines public interest & the listed issuer has not addressed all situations of conflict of interests satisfactorily

22 May 2020: Announcement of RI: JAKS market share price: RM1.03:  23 May 2020: RM 0.875

13 July 2020: Announcement of revised RI: JAKS market share price: RM 0.945: 14 May 2020: RM 0.875

Technically the rights issue is offered to all shareholders equitably & all shareholders have the rights & entitlement to subscribe to 1,287,286,584 Rights Shares together with 643,643,292 Warrants allocated to them based on no. of shares held in the company. As such, all shareholders are treated equally & enjoy full benefits & entitlements under the rights issue

But if you look deeper the discount of more than 50% to the TERP of JRB Shares with free warrants immediately cause the market share price to drop and those do not have saving to take up the RI will see their investment immediately drop/dilution in value.

The whole RI is actually robbing the poor to enrich the rich and underwriter. Many minority shareholders me included are in dilemma to cut loss now or borrow more money to invest and get sucked into and play out by the Jaks management with never ending fund raising with issue of billion of shares like toilet paper and consigned Jaks into penny stock.

I really cannot understand why the rule: shares are not priced at more than 10% discount to the weighted average market price of the shares for the 5 market days immediately before the price-fixing date only apply to Private Placement but not Rights Issue?

The RI is designed to safeguard CEO undertaking up to an aggregate amount of RM50.00 million and to procure underwriting arrangement for the remaining portion of RM150.00 million at the very expensive expense of minority shareholders who cannot afford or unwilling to subscribe for RI.

Offence 4: Clearly the RI undermined public interest/confident (Market share price drop the next day immediately after announcement of RI) and also clearly the conflict of interest between minority shareholders unable or unwilling to subscribe for the RI and CEO and underwriters that are fully protected by discount of more than 50% to the TERP of JRB Shares with free warrants are not addressed at all.

For illustrative purposes, shareholders who do not subscribe RI will see their share value dilute from 5-day VWAMP of JRB Shares up to and including 7 July 2020, being the latest practicable date prior to this announcement (“LPD”) of RM0.9443 to TERP of JRB Shares of RM0.50 whereas underwriters only pay RM0.225 for 1 rights shares together with 0.5 free warrant. Isn’t that a very clear day light robbing the poor shareholders to enrich the rich underwriters?

Refer Jaks website Media news:

 http://jaks.irplc.com/medianews.htm?filepath=JAKS/JAKS-Nanyang-12072020.pdf

Highlights: (吉隆坡11日讯)捷硕资源(JAKS,4723,主板建筑股)放眼越南海阳省的煤炭发电厂今年11月投运,料可带动能源业务在2021财年贡献逾半盈利。

Jaks resources expects the coal power plant in Hai Duong province, Vietnam, to achieve commercial operation in November this year, and it is expected that the energy business will contribute more than half of its profit in FY2021

洪楠堡指,公司截至2019财年末季的净负债,仍处于约0.28倍的低水平。“这让公司有能力融资,供未来收购业务。”

Andy Ang pointed out that the company's net gearing ratio as of the end of the fiscal year 2019 is still at a low level of about 0.28. "This gives the company the ability to raise funds through borrowings for future business acquisitions."

Offence 5: On 12 July 2020 CEO told Nanyang Siang Pau, “Andy Ang pointed out that the company's net gearing ratio as of the end of the fiscal year 2019 is still at a low level of about 0.28. "This gives the company the ability to raise funds through borrowings for future business acquisitions" But on 13 July 2020 Kenanga IB, on behalf of the Board, wishes to announce that after further deliberation, the Board has resolved to revise the following key terms of the Original Proposed Rights Issue with Warrants:-

 i. maximum gross proceeds to be raised to RM289.64 million from RM160.92 million; and

 ii. Minimum Subscription Levels to be raised to RM200.00 million from RM130.00 million.

Since CEO Andy Ang is confident coal power plant in Hai Duong province, Vietnam, to achieve commercial operation in November this year, and it is expected that the energy business will contribute more than half of its profit in FY2021 and since JAKS gearing ratio as of at end of the fiscal year 2019 is still at a low level of about 0.28. This gives the company the ability to raise funds through borrowings hence my suggestion to JAKS management please replace this RI with Bank borrowing, period.

In view of the above 5 offences is it my hope SC and Bursa will reject JAKS revise proposed RI. It is also my hope SC and Bursa will also enforce shares are not priced at more than 10% discount to the weighted average market price of the shares for the 5 market days immediately before the price-fixing date for RI too to prevent insiders and underwriter RI billion of share at penny price causing market price disruption and at the expensive expense of minority shareholders who decide to cut loss, unable to subscribe or unwilling to subscribe to the RI.

Please allow me to suggest for a more fairer and equitable RI, discount should be capped at 10% and free warrants distribute to the current shareholders and subscribe Rights shares:

For illustration purpose: My suggest propose Rights Issue with Warrants may now entail an issuance of up to 321,821,645 Rights Shares together with 321,821,645 free Warrants based on the above mentioned enlarged number of 804,554,115 Shares in issue, a revised illustrative entitlement basis of 2 Rights Shares for every 5JRB Shares held with 1 warrant for every 5 JRB shares currently held and 1 warrant for every 2 Rights shares subscribe and a revised illustrative issue price of RM0.815 per Rights Share, the issue price of the Rights Shares is now assumed at RM0.815 per Rights Share throughout this announcement, which represents a discount of RM0.090 or approximately 10% to the TERP of JRB Shares of RM 0.907, calculated based on the 5-day VWAMP of JRB Shares up to and including 7 July 2020, being the latest practicable date prior to this announcement (“LPD”) of RM0.9443.

The exercise price of the Warrants is now assumed at RM0.905 per JRB Share throughout this announcement, which represents the TERP of JRB Shares of RM0.905 calculated based on the 5-day VWAMP of JRB Shares up to and including the LPD of RM0.9443. 

If SC and Bursa enforce above fairer and equitable RI, I believe those do not wish to subscribe will still get the free warrant and those RI subscribers and underwriters will get the 10% discount and also sweetener free warrants. Moreover the market price will not be disrupted due to huge discount and dilution effect.

Thank you

Best Regards

Lee Soon Sheng

PS: For illustrate purpose the RI is so bad that even JAKS Executive Director DATO' RAZALI MERICAN BIN NAINA MERICAN had to sell his shares at current market depressed price.

DATO' RAZALI MERICAN BIN NAINA MERICAN: 20-Jul-2020: Disposed Warrant: 35,500: RM 0.518

DATO' RAZALI MERICAN BIN NAINA MERICAN: 20-Jul-2020: Disposed: 4,000,000: RM 0.843

DATO' RAZALI MERICAN BIN NAINA MERICAN: 20-Jul-2020: Disposed: 1,000,000: RM 0.843

DATO' RAZALI MERICAN BIN NAINA MERICAN: 13-Jul-2020: Disposed: 5,000,000: RM 0.948

DATO' RAZALI MERICAN BIN NAINA MERICAN: 03-Jul-2020: Disposed: 1,500,000: RM 0.958

DATO' RAZALI MERICAN BIN NAINA MERICAN: 29-May-2020: Disposed: 2,000,000: RM 0.883

DATO' RAZALI MERICAN BIN NAINA MERICAN: 27-May-2020: Disposed: 1,500,000: RM 0.888

DATO' RAZALI MERICAN BIN NAINA MERICAN: 28-Jan-2020: Disposed: 1,000,000: RM 1.367

 

It is very clear the RI is value dilutive/destroying even to JAKS directors who might not be as rich as CEO Andy Ang and was forced to cut win/cut loss as he might not have enough money to take up the RI.

Just imagine how about me and many who loaded up early in the year in anticipation promised by JAKS that Jaks’ Hai Duong Vietnam power plant will be operational in year 2020 and will generate net profit/ cash flow of RM 120 - 250 millions to JAKS for the next 25 years. Everyone is hopeful PublicInvest will then upgrade JAKS like MFCB but instead PublicInvest ceasing coverage after repeat warning, “All told, we are still wary over the various dilutive equity fund raisings done so far to meet its liquidity demands and the poor execution especially on its property business”

The current RI is the last straw that broke the camel’s back, it show how poorly CEO Andy Ang on execution that instead of turning “Cash Cow JHD Vietnam Power Plant” into rewarding the shareholders but alas a poorly thought out RI had turned shareholders into Cash Cow for the JAKS/CEO/Underwriters to milk its dry. 

Will SC and Bursa also investigate the Award of Free Shares under the Restricted Share Plan of JAKS Resources Berhads (JRB or the Company) Long-Term Incentive Plan 38,709,760 LTIP Shares is against certain performance merit yardstick, might constitute abuse of power or conflict of interest to unjustifiable award or any SC/Bursa rule and regulation or on corporate governance practices and transparency?

Date of Offer of LTIP Shares: 30 January 2019

  • Executive Director/Chief Executive Officer: 27,625,760
  • Senior Management: 10,645,800
  • Other Selected Employees/Executives: 438,200
Discussions
9 people like this. Showing 27 of 27 comments

Tom

how come you so stupid, sslee? just ignore jaks and buy other stocks

2020-07-20 21:41

hello_VN

sslee is not stupid, but you are for sure.sslee comes out with facts and arguments, while you have nothing! go fly kite!

2020-07-20 21:59

EngineeringProfit

A noble deed to be supported (Conflict of interest: None. I'm not holding any Jaks at this moment)

2020-07-20 22:07

hello_VN

low life is forever low life..even god cannot help you

2020-07-20 22:08

Tom

aiyo god also don't want to help chartao(木头)ppl if they still insist to become chartao, lol...

2020-07-20 22:10

hello_VN

not a god, not even near god.you have no right to judge/label

2020-07-20 22:17

gohkimhock

Sslee, you got trapped in Jaks?

2020-07-20 22:48

PeterPan1979

sslee, I support your action. Kindly share with us the response by SC & Bursa

2020-07-20 22:55

cskek81

Sslee, give a 1 million LIKE

2020-07-21 07:16

Sslee

Dear all,
Amended with addition points:

For illustrative purposes, Shareholders who do not subscribe RI will see their share value dilute from 5-day VWAMP of JRB Shares up to and including 7 July 2020, being the latest practicable date prior to this announcement (“LPD”) of RM0.9443 to TERP of JRB Shares of RM0.50 whereas underwriters only pay RM0.225 for 1 rights shares together with 0.5 free warrant. Isn’t that a very clear day light robbing the poor shareholders to enrich the rich underwriters?

Since CEO Andy Ang is confident coal power plant in Hai Duong province, Vietnam, to achieve commercial operation in November this year, and it is expected that the energy business will contribute more than half of its profit in FY2021 and since JAKS gearing ratio as of at end of the fiscal year 2019 is still at a low level of about 0.28. This gives the company the ability to raise funds through borrowings hence my suggestion to JAKS management please replace this RI with Bank Borrowing.

Please allow me to suggest for a more fairer and equitable RI, discount should be capped at 10% and free warrants distribute to the current shareholders and subscribe Rights shares:
My suggest proposed Rights Issue with Warrants may now entail an issuance of up to 321,821,645 Rights Shares together with 321,821,645 free Warrants based on the above mentioned enlarged number of 804,554,115 Shares in issue, a revised illustrative entitlement basis of 2 Rights Shares for every 5JRB Shares held with 1 warrant for every 5 JRB shares currently held and 1 warrant for every 2 Rights shares subscribe and a revised illustrative issue price of RM0.815 per Rights Share, the issue price of the Rights Shares is now assumed at RM0.815 per Rights Share throughout this announcement, which represents a discount of RM0.090 or approximately 10% to the TERP of JRB Shares of RM 0.907, calculated based on the 5-day VWAMP of JRB Shares up to and including 7 July 2020, being the latest practicable date prior to this announcement (“LPD”) of RM0.9443.
The exercise price of the Warrants is now assumed at RM0.905 per JRB Share throughout this announcement, which represents the TERP of JRB Shares of RM0.905 calculated based on the 5-day VWAMP of JRB Shares up to and including the LPD of RM0.9443.

If SC and Bursa enforce above fairer and equitable RI, I believe those do not wish to subscribe will still get the free warrant and those RI subscribers and underwriters will get the 10% discount and also sweetener free warrants. Moreover the market price will not be disrupted due to huge discount and dilution effect.

2020-07-21 08:44

bfg9000

Thank you SS Lee for raising the concerns with coherent and substantiated points, something which is lacking in the shareholder base of JAKS which has been driven by heavy emotional investment into the stock until you can see borderline psychopathic behaviours (illustrated by Tom in this thread, and the bullying behaviour in the general JAKS thread where any question raised on JAKS is attacked straight away without considering the merit).

Kindly do let us know the outcome.

Plan B is a mass rejection of RI. I don't think it will amount to much considering most shareholders are afraid of RI failure. But a high proportion of rejection votes is a signal that there are governance issues.

If you or anyone is willing, I will nominate as proxy.

2020-07-21 11:14

stockraider

Sslee again talk rubbish loh....!!
Jaks raise fund...bcos is in need....to finance its project...the free warrant is given to the shareholders as a sweetener for their support to subscribe the Rights share mah...!!

2020-07-21 11:22

Sslee

Haha stoickraider,
Already sold your NETX for 0.5 cents gain or buying more multiple of 50,000X NETX and entitle to subscribe 6000X Rights shares at RM 600X together with 3000X free warrants.

i) Proposed consolidation of every 50 ordinary shares in NetX (“NetX Shares” or “Shares”) into 1 NetX Share (“Proposed Share Consolidation”); and

ii) Proposed renounceable rights issue of up to 629,491,596 new Shares (“Rights Shares”) together with up to 314,745,798 free detachable warrants in NetX (“Warrants C”) on the basis of 6 Rights Shares together with 3 free Warrants C for every 1 existing Share (after the Proposed Share Consolidation) held by the entitled shareholders on an entitlement date to be determined (“Proposed Rights Issue with

2020-07-21 12:37

BlessedInvestor

Thank you SSlee for taking this action which will serve as alert or reminder to ALP not to misuse or abuse the funds raised from RI. As a shareholder, I am dissapointed that ALP put in the proposal to increase the RI to raise funds for the following

(Based on max scenario)

a) Future business projects or investments - RM 80 million
b) Preliminary expenses-venture new construction projects Vietnam - RM 25 million
c) Working capital - RM 19 million

Jaks mgt leads by ALP needs to be more specific on this rather than asking shareholders to give him blank cheque. You may ask them to be more specific. If it is used to buy the remaining 10% equity interest in the power plant to 40% then is ok. Right now they should focus on power plant rather than venture into new projects again before settling their mess in Star Project. Till now they still yet to settle problems in the Star Project, and still has court case ongoing. Why asking money again to venture into new projects since the existing project still in mess...

2020-07-21 13:31

1901

pls cc to minority shareholder watch group as well...

2020-07-21 18:12

Henry8833

Thank you sslee for doing this for Minority shareholders. Some one make noices will help such that mgt does not play a fool. See today share price started to rebound....

Jaks has a gold mine ie its power plant. As long as it focuses on power plant, it should be ok. I believe in DK working on relative valuation if mgt does not venture into stupid property project again. The Star saga shows that they are not capable of executing project. They have good Chinese partner to take care of power plant.

2020-07-21 18:29

BlessedInvestor

Good idea, Dear SSlee, kindly cc to the Minority Shareholders Watch Group (MSWG)

2020-07-21 21:17

apple4ver

My comment...

The 6-months moratorium on bank loan repayments due to MCO will expired end of September. The very purpose for this moratorium is to ease the financial strains on individuals and companies during this unprecedented time. We are sure that with majority of shareholders being Malaysian, it is fairly reasonable to assume that most of the shareholders too are finacially stressed. Yet, this is around the time when the right issue will be due and payable. Under original proposal, each entitled shareholders holding 1,000 shares needs an estimated RM200 to fully subscribed his entitlement. The required capital layout nearly doubled to RM360 under revised proposal. And we have not yet factored in the nearly 20% in unrealised captial loss from RM1.03, the closing price of JAKS before the first announcement.

We understand the company's difficulties in getting bank loan currently. We also fully agree that it is proper and essential to increase the effective economicc interest to 30% in JHP as per adviced in the original propasal. Now, let's be fair to the shareholders. Do JAKS really need to increase RI RIGHT NOW to pay for future (2 years? 3 years?) business projects or investments (RM20-80m) or expenses to venture into new construction projects in Vietnam (RM10-25m)? Or why can't JAKS raise bank borrowing to roll over maturing loan (RM31.6m)? Eliminating those "extra items", there is simply no need to revise up RI. Fairness here means propotionally sharing the burden of funding between equity and loan market. Fairness also means not forcing shareholders to reduce their shaerholding especially so in the trying times immediately after loan moratorium is over.

2020-07-21 22:12

Sslee

Remember the last Private placement: Renewable Energy Projects RM10 million.
Most likely this kind of money are for ALP pocket money and to entertain Vietnam local government officers.

2020-07-22 09:17

human

With interest rate at record low in many countries, bank borrowing is a better option for Jaks to take.
Last agm Alp mentions the forecast profit of power plant is 100mil while the LD of property business should stop once they exit the business 2020.
The original RI meant to raise minimum 130mil while the revised RI 200mil. This amount should not be difficult if Jaks credit rating is good.

2020-07-22 10:18

Sslee

Dear all,
I’m now piss-off with CEO ALP for forcing me to cut loss and thinking of adding this hard hitting PS to my official complaint to SC & Bursa with CC to ALP and MSWG.

PS: 22 May 2020: Announcement of RI: JAKS market share price: RM1.03: 23 May 2020: RM 0.875
DATO' RAZALI MERICAN BIN NAINA MERICAN: 20-Jul-2020: Disposed Warrant: 35,500: RM 0.518
DATO' RAZALI MERICAN BIN NAINA MERICAN: 20-Jul-2020: Disposed: 4,000,000: RM 0.843
DATO' RAZALI MERICAN BIN NAINA MERICAN: 20-Jul-2020: Disposed: 1,000,000: RM 0.843
DATO' RAZALI MERICAN BIN NAINA MERICAN: 13-Jul-2020: Disposed: 5,000,000: RM 0.948
DATO' RAZALI MERICAN BIN NAINA MERICAN: 03-Jul-2020: Disposed: 1,500,000: RM 0.958
DATO' RAZALI MERICAN BIN NAINA MERICAN: 29-May-2020: Disposed: 2,000,000: RM 0.883
DATO' RAZALI MERICAN BIN NAINA MERICAN: 27-May-2020: Disposed: 1,500,000: RM 0.888
DATO' RAZALI MERICAN BIN NAINA MERICAN: 28-Jan-2020: Disposed: 1,000,000: RM 1.367

It is very clear the RI is value dilutive/destroying even to JAKS directors who might not be as rich as CEO Andy Ang and was forced to cut win/cut loss as he might not have enough money to take up the RI.

Just imagine how about me and many who loaded up early in the year in anticipation promised by JAKS that Jaks’ Hai Duong Vietnam power plant will be operational in year 2020 and will generate net profit/ cash flow of RM 120 - 250 millions to JAKS for the next 25 years. Everyone is hopeful PublicInvest will then upgrade JAKS like MFCB but instead PublicInvest ceasing coverage after repeat warning, “All told, we are still wary over the various dilutive equity fund raisings done so far to meet its liquidity demands and the poor execution especially on its property business”

The current RI is the last straw that broke the camel’s back, it show how poorly CEO Andy Ang on execution that instead of turning “Cash Cow JHD” into rewarding the shareholders but a poorly thought out RI had turned shareholders into Cash Cow for the CEO and underwriters to milk dry.

Will SC and Bursa also investigate the Award of Free Shares under the Restricted Share Plan of JAKS Resources Berhads (JRB or the Company) Long-Term Incentive Plan 38,709,760 LTIP Shares is against certain performance merit yardstick, might constitute abuse of power or conflict of interest to unjustifiable award or any SC/Bursa rule and regulation or on corporate governance practices and transparency?

Date of Offer of LTIP Shares: 30January 2019
Executive Director/Chief Executive Officer: 27,625,760
Senior Management: 10,645,800Other
Selected Employees/Executives: 438,200

2020-07-22 13:48

stockraider

Post removed.Why?

2020-07-22 13:52

mmk79

I fully support you sslee. You have done all of the us a good favour.

2020-07-23 20:52

human

sslee, is the letter send?

2020-07-27 16:04

Sslee

Yes already send.
Today received case no from SC

2020-07-27 19:00

human

Thanks for taking the lead.

2020-07-27 21:03

Sslee

Dear human,
You are welcome. Will start preparing JAKS AGM questions this weekend.

2020-07-28 08:53

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