Dear Datuk Muhamad Umar Swift
Bursa Malaysia CEO
Follow up on my email dated: 26 Jun 2023
SC case: [Case: SC 2023-43278]
Bursa Ref: CAS-29571-D9G0X5
Subject Title: Follow up on my complaint: Armada, Kenanga Petronm, JAKS and Xingquan
On my previous email, I wrote on Boustead Plantations Bhd (BPlant) case:
The Edge Malaysia as business news portal has every right to chase and report business unconfirmed deals. Something is definitely brewing in Boustead Plantations for share price to suddenly shoot up from 64 cents on 08/06/2003 to high of RM1.01 on 19/06/23 in just 7 trading days (It can also be the work of pump and dump syndicate)
Finally the confirmed news is out:
KUALA LUMPUR (Aug 24): Kuala Lumpur Kepong Bhd (KLK) has proposed to buy 739.2 million shares or 33% and one share in Boustead Plantations Bhd (BPlant) for a total of RM1.15 billion or RM1.55 per share and plans to take the company private via a mandatory general offer (MGO), confirming The Edge’s report.
KLK has entered into the tripartite strategic collaboration agreement (SCA) with Boustead Holdings Bhd (BHB) — which holds a 57.42% stake in BPlant — and Lembaga Tabung Angkatan Tentera (LTAT) — which holds a 10.59% stake in BPlant — on Thursday (Aug 24), the group said in a Bursa Malaysia filing. At RM1.55, the offer is at a 19% premium to its net asset per share of RM1.30 as at March 31, 2023 and 13% premium to its closing price of RM1.37 on Wednesday
My congratulations to all the BPlant shareholders but please spare some thought for those who sold their shares earlier and missed out on the offer of RM 1.55.
My questions to Bursa:
Question 1: Based on the volume traded surely some people already have insider information of the deal. May I ask how Bursa is going to deal with the high possibility of insider trading?
Question 2: Please allow me to refer to Boustead Holding Berhad replied at Bursa website:
We refer to the news article titled “Boustead said to be disposing of plantation arm” which appeared in The Edge Malaysia newspaper dated 19 June 2023.
The Company having made due inquiry with its Board of Directors, its major shareholders and all such person reasonably familiar with the matter, the Company wishes to confirm that the Company have not entered into any agreement involving the disposal of its stake in Boustead Plantations Berhad. The Company continues to focus on its business plan and value creation for its stakeholders and investors.
This announcement is dated 20 June 2023.
Technically Boustead Holding is right to say, “The Company have not entered into any agreement involving the disposal of its stake in Boustead Plantations Berhad” But ethically and legally wrong and against good corporate governance and transparency by omitting to mention The Company and its major shareholders LTAT is in talk with interesting parties on value creation for its stakeholders and investors.
Will Bursa take reprimand action on the Board of Directors of Boustead Holding?
Question 3: May I know any plan action by Bursa on my previous suggestion below?
Will SC and bursa working together with Institutional Investors Council Malaysia and MSWG come up with CORPORATE GOVERNANCE CHECKLIST in addressing?
1. How listed companies should respond to news, IBs analyst report and investor enquiry.
2. IBs analyst should include the briefing material, transcript of Q&A and interview as appendix.
3. How to prevent abuse on impairment of receivables to whitewash accounting fraud or siphoning listed company money to relate party, friendly party or to own private company
4. Should SC informed the complainer the progress/status of complaint lodged with SC and Bursa (case still active or close with no action)
ON Xingquan case:
Referring to the above Bursa announcement, please allow me to personally ask Datuk Muhamad Umar Swift did Dato’ Wu Qingquan (“Dato’ Wu”) and Wu Lianfa pay those fines imposed on them?
Question 2: If the answer is no, then May I ask did Bursa take any legal action to collect the fines?
Question 3: If Bursa did not take legal action to collect the fines from recalcitrant offenders then how Datuk Muhamad Umar Swift as Bursa Malaysia CEO ensure Bursa to be an efficient, vibrant, fair and orderly market?
Question 4: Will Datuk Muhamad Umar Swift please check with SC on my Xingquan complaint:
Is SC taking any action on my previous questions below? Or is the case closed with no further action?
Question 1: In view of the seriousness of offends/frauds committed by the fraudsters and their total disregard/contempt shown against authorities of SC and BURSA with no respect for Malaysia Law. Has SC made an extradition request with the Chinese government to extradite CEO Dato’ Wu and his brother executive director Wu Lianfu to stand trial in Malaysia Court?
Xingquan brand products (Gertop) are available for sale at many online shopping websites. This means Xingquan still has production lines and assets in China but the China owner and Management team just took us Malaysians as fools and showed utmost contempt to SC and BURSA authorities/Malaysia law.
Will SC now invoke CMSA 2007 section 358 (1) in the public interest, taking legal action against Xingquan to recover loss on behalf of victims who suffers loss or damage by reason of, or by relying on, the conduct of another person who has contravened any provision of Part VI or any regulations made under this Act, the amount of the loss or damage by instituting civil proceedings against the other person whether or not that other person has been charged with an offence in respect of the contravention or whether or not a contravention has been proved in a prosecution?
Question 3: Is SC investigating Xingquan External Auditor: SJ Grant Thornton, IPO: CIMB Investment Bank Berhad and PP & RI: RHB Investment Bank Berhad principal advisor, underwriter and placement agent for gross negligence and failure to perform their fiduciary duty?
Note: Referring below SC announcement
The SC reprimanded Xingquan, its Executive Chairman and CEO Dato’ Wu Qingquan, Executive Director Wu Lianfa, former Non-Independent Non-Executive Director Ng Sio Peng and former Senior Independent Non-Executive Director Zhou Liyi for:
falsely recording a loss of RMB415.7 million from the sale of inventory by Xingquan’s wholly-owned subsidiary;
furnishing to Bursa Malaysia a false agreement between the said subsidiary and a third party;
furnishing false or misleading financial statements to Bursa Malaysia; and
recording cash and bank balances in eight bank accounts collectively belonging to Xingquan that were false or misleading.
Why no actions were taken against Xingquan External Auditor: SJ Grant Thornton, IPO: CIMB Investment Bank Berhad and RI: RHB Investment Bank Berhad principal advisor, underwriter and placement agent for:
1. Gross negligence and failure to perform their fiduciary duty; and
2. Complicite in above fraud/crime in auditing, preparing and approving Xingquan Financial Account, IPO Prospectus and RI Prospectus.
Dear Sharon Hui (CEO’s Office),
Can I be reasonable in expecting Datuk Muhamad Umar Swift (Bursa Malaysia CEO) to reply to my above email?
I wish all “A Happy Hari Merdeka Malaysia August 31 2023”. May we reset our country to be zero tolerance to corruption/fraud and make collective effort to send crooks to jail and recover what was stolen from our country.
Lee Soon Sheng