Philip

Your points are well noted and let us leave the inari issue for another day

Our fate essentially rests with DS Thong who can immediately make us better off if he wants to

However, we have some control over our destiny inasmuch as we can pressure the directors to resume buyback of the very undervalued shares

How can they say that they will not do buyback if it will trigger an mgo obligation, which they do in the share buyback statement

This is preferring the major shareholder to the detriment of the minority shareholders, and is a breach of the directors’ fiduciary duties under the Companies Act

SS Lee

Noted but the directors of Insas have a fiduciary duty to act in the best interest of its shareholders ie all of us

Why can’t we ask them to do an in-specie distribution of inari shares?

After all, inari is only an associate (not a subsidiary) and actually does not rely on Insas anymore

All I am asking is logically, can any part be worth more than the whole (sum of its parts)?

i3lurker

Same point

How can a brand new Mercedes headlamp be worth more than a brand new Mercedes car?

Not so

If the headlamp is still in the Mercedes, it cannot be worth more than the car

From an investing viewpoint, how is it possible that Insas’s 19% interest in Inari (RM800m) is worth double the entire market capitalisation of Insas (RM400m)?

How can one part be worth more than the sum-of-the-parts?

Ok noted tq

I don’t understand why there are so many sellers at these prices, which haven’t been seen in the last few years

The sellers are surely losing money if they sell at these levels

You have to make mgo if you exceed 33%

If you already have more than 33%, you have to make mgo if you exceed 2% purchases in a six month period

If you already have more than 50% you are no more subject to mgo

682pujut2b

There are no substantial shareholders in gtroniic so mgo issues do not arise

Leno

How can you be happy with the present price?

I think this was the price 5 years ago when Insas was a much different animal (cos inari was just an ugly duckling then)

If you have millions of shares, you must be down millions of RM!

Stock raider

I would buy more but no more bullets

However, we can also die waiting if DS Thong refuses to unlock value until such time as he sees fit

682pujut2b

Our last resort option is to attend this year’s AGM in force and voice our views on the board’s failure to unlock value

Stockraider

I am sure that DS Thong has more than 33% as he will have shares in his nominees’ names

He may even colllectively have more than 50% so a hostile bid will not succeed

We must accept that he has the better cards so we need to compromise not confront

Leno

Treasury shares are not included in the ownership calculation so will not affect DS Thong’s shareholding level if they are cancelled

They will also not affect his shareholding level if they are distributed as everyone will be proportionately similarly affected

We as minority shareholders can scream blue murder until the cows come home but life is unfair

We have to meet halfway or not at all

Stock raider

He didn’t convert, and he has not asked for mgo waiver

However, he “controls” the Insas board and the directors will not buy back shares if it will trigger mgo

So we are settling for the next best thing, to approve mgo waiver (after DS Thong has applied to the SC for waiver from mgo as a result of share buyback) so that Insas can resume share buyback

This should have a positive effect on the Insas share price, and all of us will benefit

This is compromise win win solution

SS Lee

Just to repeat, there is nothing for Insas to do other than to ask DS Thong to apply for mgo waiver so be firm with Dato Wong if he tries to give you some sob story about why he can’t table the resolution at this year’s AGM

In fact, Insas should resume buyback today and trigger the mgo if the directors are really looking after the interests of ALL shareholders, and not just the controlling one.

SS Lee

I hope you will engage Dato Wong now to ask him to “ask” Dato Sri Thong to apply for mgo waiver so that we can consider it at this year’s AGM

Thanks

SS Lee

How do we communicate privately?

SS Lee

Can I have your email address please?

Because it’s now below 60 sen

SS Lee

An offer for say RM1 will be very low but even if it is “not fair and not reasonable” it can still be made, and will succeed if more than 50% accept it

Actually, if I were the Insas MD, I would just distribute the inari shares as in-specie dividend

We would all get almost 1 inari share for every I Insas share

Just imagine, we would each get over RM1.50 and still retain our Insas shares!

Btw, one cannot limit the mgo to 50%

It becomes unconditional at 50% plus 1 share, but remains open for acceptances until there is theoretically 100% acceptances

Philip

It all depends on DS Thong

I was so sure that he would convert his warrants and trigger a mgo at RM1 - a seeming no-brainer decision which would net him a few hundred million RM

For whatever reasons, DS Thong may still not want to make a mgo so the next best thing is to “ask” him to apply for a waiver so that Insas can continue to buy back the very under-valued shares

It’s a win-win for both Insas and us (all shareholders including us and DS Thong)

Ensure not endure

I still think it’s better to cancel the treasury shares rather than distribute them but more importantly, DS Thong must ask for mgo waiver in order for Insas to resume share buyback

By the way, there is noting for Insas to do in this matter other than to “ask” DS Thong to ask for the mgo waiver which I am sure the SC can quickly approve subject to shareholder approval

Hope you can use your good relationship with Dato Wong to endure that the mgo spproval resolution is put forward for shareholder approval at this year’s AGM

Thanks

It is a bit nonsensical, after recommending the share buy back, to say with the next breath that they do not intend to do it

On a related note, the Insas directors shouldn’t say that they do not intend to do the buyback if it will cause DS Thong to have to make a mgo


This is preferring the major shareholder to the detriment of the rest of us

I worked out that if Insas bought back the balance of the 10% (39.3m shares) and cancelled them, it could buy back another 62.3m shares (i.e. 10% of the reduced share capital of 623.7m shares)

The above will easily enhance the NTA to above RM3 and should also have a positive effect on the share price

Mr SS Lee

I am also caught with Insas shares

I think that the only way out is to ask the company to “ask” DS Thong to apply for a mgo waiver to allow the company to buy back its very under-valued shares

As you know, you asked Dato Wong to do that before last year’s AGM but he cited shortage of time for failure to do so

I hope you will ask him again

However, I would disagree with you as I feel it would be better if the company cancelled bought-back shares rather than distribute them

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