Dear all,

Just received the follow up from Bursa on my complaints to JAKS:

 

Dear Sir/Madam,

 

We refer to your complaint against Jaks Resources Berhad (“JRB”).

 

We have engaged the Company pertaining to the issues raised and has reminded the Company to ensure compliance with the Listing Requirements at all times, as well as the best practices pertaining to the conduct of general meeting. In summary, the issues raised were clarified by the Company as follows:

 

1)    Some of the shareholders had sought clarification on the slides that were presented during the meeting. The content of the slides were extracted from the annual report. As these were just clarifications, the Company had not recorded them as questions and answers. The questions raised by the shareholders and the answers provided by the Management has been recorded in the AGM minutes which had been provided to your goodself.

 

2)    After the AGM, a number of shareholders had personally approached the CEO of JAKS, Mr Ang Lam Poah to ask more questions and Mr Ang had attended to their enquiries. As this happened after the AGM, the Company did not include it into the AGM minutes.

 

3)    There were questions raised on the slide presentation of the Group’s operation and financial results for financial year 2018 and the content of the slide presentation were extracted from the annual report. The other questions as listed in the minutes of the meeting is in relation to the prospects of the investment properties, if there is an independent Risk Management Committee and the reason for the reduced staff cost but higher directors’ remuneration were again related to the information already provided in the annual report.  The Company views these as not key matters outside of the information in the annual report.

 

4)    The information in the slide is extracted from the annual report. Hence, there are no other information which shareholders have missed out other than the information that has been disclosed in the annual report.

 

Notwithstanding the above clarification by the Company, we have impressed upon the Company to be mindful of the need to improve the form of communication with shareholders in the future general meetings. 

 

Thank you.

 

 

Bursa 2U

Bursa Malaysia Berhad

Our Ref: CC/38/20

 

Snapshot of JAKS Seventeenth AGM minutes:

Dear Bursa,

 

Thank you for engaging with JAKS pertaining to the issues raised and have reminded the Company to ensure compliance with the Listing Requirements at all times, as well as the best practices pertaining to the conduct of general meeting.

 

But for JAKS management to say the AGM minutes below is all a qualified and certified Company Secretary able to capture on 3 Q&A is beyond my comprehension.

I did not attend JAKS 17^th AGM hence I am not able to rebut JAKS management clarification below:

1)    Some of the shareholders had sought clarification on the slides that were presented during the meeting. The content of the slides were extracted from the annual report. As these were just clarifications, the Company had not recorded them as questions and answers. The questions raised by the shareholders and the answers provided by the Management has been recorded in the AGM minutes which had been provided to your goodself.

 

2)    After the AGM, a number of shareholders had personally approached the CEO of JAKS, Mr Ang Lam Poah to ask more questions and Mr Ang had attended to their enquiries. As this happened after the AGM, the Company did not include it into the AGM minutes.

 

3)    There were questions raised on the slide presentation of the Group’s operation and financial results for financial year 2018 and the content of the slide presentation were extracted from the annual report. The other questions as listed in the minutes of the meeting is in relation to the prospects of the investment properties, if there is an independent Risk Management Committee and the reason for the reduced staff cost but higher directors’ remuneration were again related to the information already provided in the annual report.  The Company views these as not key matters outside of the information in the annual report.

 

4)    The information in the slide is extracted from the annual report. Hence, there are no other information which shareholders have missed out other than the information that has been disclosed in the annual report.

But common sense told me it is beyond believable that AGM attendees only ask the above 3 Q&A when the most urgent and pertinent questions are on JAKS Vietnam Power Plant and Star Pacific Project?

Below are some comments posted at i3investor forum regarding JAKS 2019 AGM and link to an attendee account on JAKS 2019 AGM: https://klse.i3investor.com/blogs/kianweiaritcles/2019-07-08-story214175.jsp

It is now up to Bursa to judge whether JAKS clarification is up to the mark?

 

Posted by edkfc > Jun 25, 2019 4:35 PM | Report Abuse

The AGM was indeed good , lively n engaging. I like the fact that the BOD was keen n eager to response n engage with shareholder. QnA time lasted slightly more than an hour. 6 to 7 ppl ask a range of questions , mostly on the Pacific Star project n Vietnam power plant.

 

Posted by edkfc > Jun 25, 2019 6:29 PM | Report Abuse

No. CFO indicated the verbal presentation on 2018 Financials by Elaine covers most of it ( i did not agree on that ). So we were ask to repeat questions not cover, which few of us did , and BOD responded well. As they were more questions after1hr, shareholder were ask to write in.

 

Posted by edkfc > Jun 25, 2019 7:37 PM | Report Abuse

Some key points i noted are :
1 Management is sticking to its commitment in completing the entire Pacific Star project by end 2019, with Star tower given 1st priority.

2 with regards to Jaks claim that the final rightful due delivery date of Star tower is on Aug2020 is cause by Start making significant changes to the building design in second half of 2017 ( it took a few repeated questioning by shareholders to get this specific response)

3 One of the key points strongly emphasised by CEO n other BOD on the PPA agreement is the signing is with central government n not with the provintial.

4 Another key point strongly emphasized by CEO n BOD on the PPA is the Guaranteed Purchase of power @ 6500hrs per year of output. Its practically an unconditional guaranteed. No one else have such PPA anymore !

5 After much repeated questioning by several shareholders on financial returns of the Haiduong project, CFO ( after short conversation w CEO) indicated a net return of rm80 to rm100 million annually at full commercial run.

These are the points that capture my interest. I am sure many others have received more...if so pls share for the benefits of all. PTL

 

Posted by edkfc > Jun 25, 2019 10:34 PM | Report Abuse

Icon...we ran out of time, the question on waste water project was not raised. After 1hr of q&a , mostly on the pacific star n vietnam power project , the chairman ask for last q before voting .n ending.

 

Thank you

 

Best Regards

Lee Soon Sheng

 

 

Dear Bursa,

 

Thank you for engaging with JAKS pertaining to the questions raised by me on JAKS Rights Issue.

 

The question still remains why the requirement on not more than 10% discount for the issue price is applicable for private placement exercise implemented pursuant to general mandate under Section 75 and 76 of the Companies Act 2016. Other than this, there is no requirement on the maximum discount for the issue price for other fund raising exercises?

 

The Rights Issue with heavy discount and sweetener free warrants is now being misused by the Board to raise funds by issuing Rights shares in the billions. Is this what Bursa and SC really want in seeing many shares become penny prices? Is the heavy discount rate and sweetener benefited the minority shareholders or the underwriters? Should SC and Bursa make a stop to this type of practices that trapped minority shareholders to borrow money to take up their RI for not subscribing to the RI is amounting to seeing your shareholding diluted severely and your investment go down the drain.

 

Thank you

 

Best Regards

Lee Soon Sheng