Before we attempt to put on our magnifying lens on the substances that propelled a whopping 95% surge of Lii Hen shares price from July 26 to September 10, 2004 to RM 3.94 a share, it is important to make prominent here that both Tan Bee Eng and Chua Lee Seng were involved actively and indirectly in the trading of Lii Hen shares during these material period in 2004.

As alleged in the police report of April 5, 2013, to ensure that Dato' Goh will stay on track of their objective of a higher shares price for Lii Hen, they have offered him cash incentives if he is able to bring up the shares price to RM 2 level , RM 3 level, RM 4 level and so forth. Both Tan Bee Eng and Chua Lee Seng will reward the Dato' with an "angpow" of RM 20,000 if any of these levels is achieved. That would mean they have paid out RM 100,000 in angpows considering that Lii Hen shares price had reached RM 6.80 at some point in October 2004.

Beside disclosing all those stock positive announcements to Bursa Malaysia which were proved either false or misleading utterly, the duo have been furnishing sensitive company documents to Dato' Goh in order to complete their disposal of the 32% stake in Lii Hen successfully. The confidential lists of substantial shareholder of Lii Hen (see pic) are one of those documents.

Their purpose of supplying these documents to the Dato' on a fortnightly basis raised many eyebrows. As a stock market investor ourself we can understand that with the availability of these lists, the Dato' will have a better insight and is able to map out a more calculated strategy thereby ensuring a successful consummation of their deal. It would be akin to enabling him to read his opponents in the market like the back of his palm in the trading of Lii Hen shares.

The frequency of these documents were passed to him is another clear violation and a total failure on Lii Hen's corporate governance. How on earth could the directors of Lii Hen frequently and secretly handed an outsider the documents with the full details of its shareholders and shareholdings on a fortnightly basis, right from the start of stage one to as far as January 2005? Did the company secretary sleeps on his job as the gate-keeper of Lii Hen's confidential corporate documents? Privately, we were told that the company secretary was probably one of the sellers in Avenue Securities Sdn. Bhd. on April 16, 2004 through a nominee of his.

It is clear now that both Tan Bee Eng and Chua Lee Seng were involved actively and indirectly in the trading of Lii Hen shares with the revelation of this snide of substantial shareholders lists. Please sit real tight now as we are about to shock you on why the board of Lii Hen had meticulously masked the percentage of shortfall of public shareholdings spread in their announcement to Bursa Malaysia on October 18, 2004 as we have said at length in Part 4 The Sword of Damocles. Although we were suspecting back then that the board of Lii Hen was concealing and withholding a very material fact about the all important 10% public shareholdings threshold, we needed some assistance in order to properly identify certain individuals and institutions in the lists.

We can confirm now that based on the Top 150 Shareholders List of Lii Hen issued by the company's Registrar, Plantation Agencies Sdn. Bhd. (Company No. : 2603-D) on October 12, 2004, the public shareholdings spread of Lii Hen was only 8.86% as at October 8, 2004. Had this real number of 8.86% been disclosed instead of the number of 960 shareholders, Lii Hen shares would have been suspended indefinitely on October 18, 2004 when that announcement was made. Lii Hen is no longer a public company and an issuer qualified of being listed on Bursa Malaysia technically and legally.

We will leave this in the good hands of Bursa Malaysia and the Securities Commission to deal with the board of Lii Hen for now. But it will not be too long as we close in on the real shenanigans and all the ill perpetrations by those responsible will be summarised in a very detailed report for the regulators' onward actions. This is our mission as a Lii Hen shareholder activists movement.

Around the time that Siow Chung Peng was moving his battalion of Lii Hen shares to PM Securities Penang Branch, whilst engaging in the talk with Catherine Lee for her fees and commissions, Dato' Goh was already at work seeking an alternative solution just in case the talk breakdown. He approached an influential politician friend of him to assist in arranging some big shares margin lines for his client, Siow Chung Peng. Soon after, an appointment was made for him to meet Hamzah Mahmood, the then CEO of Mayban Securities Sdn. Bhd. in early July 2004. This was followed by another meeting wherein he was introduced to the institutional dealing team at Mayban Securities and some fairly large shares margin financing lines were made avail to Siow Chung Peng thereafter.

Siow Chung Peng had initially accessed the Mayban Securities share margin financing facility with 1,632,100 Lii Hen shares based on his Form 29B disclosure to Bursa Malaysia on July 30, 2004. If we look closely at Lii Hen shareholdings list on October 22, 2004, a total of 8,052,600 Lii Hen shares were being financed by Mayban Securities. That mean the total exposure of Lii Hen shares at Mayban Securities was about RM 50,371,380 based on Lii Hen shares closing price of RM 6.30 on October 22, 2004.

You were told earlier that Mayban Securities had issued a firm Letter of Intent to purchase the 32% Lii Hen stake from Assets Muar Sdn. Bhd. on behalf of an undisclosed buyer. The question to ask now is what turned Mayban Securities bullish on Lii Hen that we don't know?

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

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September 20, 2013