All is not well when the block of Lii Hen shares from CIMB Securities went out to PM Securities. Catherine Lee is not an ordinary runner. She reads ancient Chinese war time history beside Sun Tzu in her free time.

The group of stock analysts under her payroll would have crunched her some numbers on Lii Hen before approaching Dato' Goh. In a normal stock play, there will be blocks of shares circulating in the market at certain discounted price called placement. Depending on the stages of the stock play, takers of the early stage placement are usually the institutions or individuals who are able to hold on to the shares until the end of a stock play. Catherine Lee is an active runner and she has never come across any Lii Hen placement in the market since late March when stage one started. She did ask Dato' Goh for placement  on several occasions but he told her that Lii Hen is not a stock play and never intended to be one. It is a corporate deal in the making.

Trading of Lii Hen shares were in a good momentum alongside a few other stocks at that time like Liqua (Liqua Health Corporation Bhd 2534) and Mahjaya (Mahajaya Berhad 9725). But both are stock play. The market is thriving with Liqua and Mahjaya placements but not Lii Hen's. There is none Lii Hen shares placement throughout the whole of 2004 except those from the Muar carpenters. And indeed, the shares placement from the Muar carpenters formed part one of the corporate deal they were pursuing.

Catherine Lee still perceived Lii Hen as a stock play and she is eager to have a hand in the action by way of Lii Hen placement, only to have her enthusiasm drenched by Dato' Goh's reply. Rather enraged, she vowed to disturb the corporate deal.

Henceforth the emergence of PM Securities in the scene. With almost half of Siow Chung Peng's battalion of Lii Hen shares now camped at PM Securities on a trading lifeline, the cunning fox begins to show its tail. She tried to convince the Dato' to do a placement of several million shares to one of her institutional clients, on the premise that this will help alleviate the financial weight on the stock play. Dato' Goh reiterated to her that Lii Hen is not a stock play and placement is not an option in the corporate deal his client is pursuing. As a matter of fact, Siow Chung Peng wanted more shares instead of reducing by placing out as she suggested.

Infuriated to have been rejected repeatedly, she started to assert her pressure on Dato' Goh to reduce the position in PM Securities by claiming that Michelle's nominees were having second thought and feeling rather jittery about the large position they were holding. She was counting that Siow Chung Peng will blink very soon and succumb to her request.

Sensing the large block of Lii Hen shares in PM Securities may be in danger in the hands of Catherine Lee or Michelle, the Dato' immediately warned Siow Chung Peng to have a backup plan in place in the event she run amok and start dumping the shares. He had the same thought too. Beside the hefty fee as demanded by Catherine and Michelle, he was paranoiac and unease about leaving the shares outside in the name of her nominees. He had enough of these butterflies in the stomach.

Siow Chung Peng made up his mind to have as much Lii Hen shares in his own name as possible from now on. But to do that he needs to come up with a substantial sum of cash which he doesn't have now. He went and sought the financial assistance of Botak Liew, his uncle in Kepong. Botak Liew is a successful businessman dealing in the manufacturing, importing and distribution of auto accessories. He is one of the founding directors of Syarikat Lean Hup (Liew Brothers) Sdn. Bhd. which controls a significant aftermarket auto accessories market share in Malaysia in the 1980s although the Liew brothers have since parted way now. KC Liew is one of the Liew brothers who owned GS Auto Accessories along Jalan 222, Petaling Jaya, one of the biggest in Malaysia. And by the way, both Botak Liew and Chan Kam Sam's wife are sisters.

Botak Liew agreed to the request of his nephew Siow Chung Peng by extending him a few million ringgit loan in cash and quoted shares. He feels comfortable with the deal because of Chan Kam Sam and that part of his cash infusion will be deposited into Chan Kam Sam's K&N Kenanga account, a sort of double security for him. Like the Chinese always say : after the door is closed, all are family.

As we have uncovered in the suit of TA Securities vs Siow Chung Peng, part of this loan came in the form of Siow Chung Peng selling off a few hundred thousand shares of Public Bank Berhad (PBBank 1295) in his stock account with TA Securities which were bought and paid by Botak Liew through him in the year 2002. In addition to this, another half a million ringgit were in cash by way of cashier's orders made out directly to stockbrokers on July 5, 2004. This cash loan carries a 10% interest per month and one month's interest is upfront, henceforth the RM 450,000-00 in EON Bank cashier's orders.

Before Catherine Lee could toast a glass of champagne to celebrate her holding hostage of Siow Chung Peng's battalion in PM Securities, Dato' Goh was informed by Siow Chung Peng that the margin financing accounts at TA Securities and K&N Kenanga are now ready. The process was quickly underway to cross out those shares from PM Securities and the last batch of 160,000 shares were completed on August 6, 2004 after some unpleasant haggling of fees and commissions with Catherine Lee.

Stunned to her disbelief that Siow Chung Peng had thwarted her attempt to close in on the Lii Hen shares by arranging such a big margin line in short notice at this critical moment of her assault. The crossing out from PM Securities also cut her off completely without a role concurrently. This pushed  her belligerence to the boiling point.

What ensued was her carefully devised malicious plot to finally lay the deadly fuse which ultimately detonated the designation of Lii Hen shares by Bursa Malaysia on October 27, 2004.

Please visit the new Lii Hen Shareholder Activists website at www.liihen.com or liihen.blogspot.com

September 9, 2013