Well, as a start his original stake in WCE is through several organizations i.e. a complex holding via 5 companies namely, Cypress Holdings Limited, Pinjaya Sdn Bhd (Malaysia), Hanton Capital Limited, Cedar Holdings Limited, Kularb Kaew Company Limited
The shareholding was as depicted below:
With the exercise, it seems that the shareholding is now cleaner i.e. as below:
As in the announcement, Hanton Capital, a company resided in a tax haven, Virgin Islands has sold its 99.9% stake of Pinjaya directly to Tan Sri Surin Upatkoon.
Well, I prefer this as it is cleaner and the actual shareholder is now back into Malaysia.
What makes it change then, as sometimes business people would prefer a more complex structure.
That could be due to several reasons:
- He just want a cleaner structure (surprisingly)
- Because of the rights issue, he may use bank financing to fund part of his subscription. Banks usually prefer a cleaner structure especially when they are the one financing the purchase.
- If one is to notice above, the holding is brought back to Malaysia. As toll business has gone riskier due to the threat of government's plan of toll elimination, I believe foreign financiers are more reluctant to finance it. The financing may be dependent on local banks and they do not want to be seen financing a company with complex web of structure.
jonbaby1234
Hi Felicity...will u add more at current price to average down your cost? Thanks.
2019-11-09 22:24