Shining Degree Sdn. Bhd. is revealed in the Letter of Intent to purchase of October 7, 2004 issued by Mayban Securities as the purchaser for the Muar carpenters' 19,200,000 Lii Hen shares. Affendi bin Tun Mohd Fuad Stephens is the beneficial and legal owner of Shining Degree Sdn. Bhd. He is the son of the late Tun Mohammad Fuad Stephens, the first Chief Minister of Sabah in 1963. He is also the substantial shareholder with a 13.3% stake in Maxis Communications Berhad (Maxis 5051) as disclosed in the Annual Report 2004 and sits on the board of a string of subsidiaries and entities that have business relationship with Maxis.

We are quite sure that Siow Chung Peng was aware of the purchase price of the 32% Lii Hen stake as well as the identity of the said purchaser around the end of August 2004 as he was kept in the loop by Dato' Goh. At this point of time, he knew he was confronting a giant in his planned takeover bid of Lii Hen. A seemingly insurmountable obstacle in the shadow of a substantial shareholder of Maxis. He doesn't has any apparent edge over his contender. Not in monetary, not in reputational.

He may not has all the other right tools at his disposal but he has one very potent weaponry. His near 20% Lii Hen stake that was already under his belt. With the emergence of this formidable contender, he knew in order to be in the knight's position to checkmate his contender, he must rakes up the stake to surpass the 25% mark as soon as possible to gain the vantage point as outlined in the Memorandum and Articles of Association of Lii Hen. This partly explained the almost double-up in Lii Hen shares price from RM 3.20 on August 30 to RM 6.30 on October 22, 2004 when he piled on 8,052,600 shares in Mayban Securities alone.

At the point of Affendi's entry in the takeover bid around the end of August 2004, there were three options for Siow Chung Peng to deal with the latest development. Either he goes alone by outbidding Affendi or he can be a passive partner behind the scene with Affendi. Or head for the exit by selling into the rally now that the price is up substantially.

Executing option one may not be feasible now technically and financially, although deep down in his heart this was what he wanted to do. He first needs to overcome the technicality of a potential general offer now that he had accumulated 8,052,600 shares or a 13.42% Lii Hen stake in Mayban Securities if he was to acquire the additional 32% stake from Assets Muar Sdn. Bhd. Financially he has to rely heavily on Mayban Securities to open another till for him.

With the first option now canned reluctantly, he must now decides on the remaining two. The mere fact that he continued to heap on a position to 18,333,400 Lii Hen shares as at October 22, 2004 clearly indicated his desire to go long haul with Affendi as the passive partner.

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This Letter of Intent by Mayban Securities is a document published and made available in the open for the first time. None of the enforcement agencies has a copy of this letter in its entirety prior to this article except the Commercial Crime Investigation Department of Polis Diraja Malaysia at Bukit Aman since August 2013. This letter is now the central piece of an allegation involving forgery, cheating and criminal breach of trust by certain individuals in several companies.

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However, we are startled after reading through in its entirety the Letter of Intent of October 7, 2004 issued by Mayban Securities. The total purchase sum offered by Shining Degree Sdn. Bhd. for the 19,200,000 Lii Hen shares was RM 47,040,000 or only RM 2.45 per Lii Hen share. Almost instantaneously we were inundated with countless question marks.

Why did the Muar carpenters accept an offer price that is 75 sen less or a 23% discount to the closing price of Lii Hen on August 30, 2004 of RM 3.20 a share if we assumed as above that the purchase price was agreed before the end of August 2004?

If we make a bolder and reasonable assumption that both Affendi and the Muar carpenters had struck and agreed on the purchase price two weeks before the Letter of Intent was issued by Mayban Securities on October 7, 2004, that would mean a huge discount of RM 2.39 a share or a 49.4% off to the closing price of Lii Hen on September 24, 2004 of RM 4.84 was given to Shining Degree Sdn. Bhd. It would be unthinkable for anyone sane and sober to do just that.

On the same note, the discount would have been RM 3.90 a share or a 61% off to the closing price of Lii Hen of RM 6.35 on October 20, 2004, the day Assets Muar accepted the offer.

Are the Muar carpenters going to let themselves short changed or something else mysterious is hidden secretly under their sleeves?

Look no further.

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

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October 18, 2013