At the upcoming EGM there is only 1 resolution – to approve the disposal of MAA. EGM circular to shareholders page 11 states that the special dividend is not subject to the approval of shareholders. The Proposed Special Dividend is conditional upon the completion of the Proposed Disposal but not vice versa. So if we allow them to dispose MAA Takaful then only they will pay the special dividend of 35 sen to shareholders as a sweetener. Apart from that, they can use the RM300 million from the disposal to buy any asset they wish. Something that is not in favour to minority shareholders. They may acquire overvalued assets.

When they acquire new assets the company may come out with rights issue, which we wouldn’t know. All these are disadvantages to the minority shareholders. We need to raise these concerns as the EGM. The future plan of the company is very uncertain.

I am voting against the EGM because of the above reasons. If the vote at the EGM is against the proposal, maybe the Board will have to come out with a better proposal than this. They may call a 2nd EGM.

The company may issue rights issue when they purchase new assets. Noone will know unless we ask.

We can't ask the company to delist from Bursa. But we can ask the major shareholders to take the company private or by capital repayment. Then only it can be delisted from Bursa.

The best option for minority shareholders is to ask the company to be taken private and not to buy new assets. For this to happen, we all have to VOTE AGAINST at the EGM.

Are the major shareholders allowed to vote??

Hope you guys will ask and understand before voting at the EGM.

Hope someone can raise up the following issues at the EGM:

1. If the proposal is approved, will the company issue new rights issue?
2. We are concerned that they may not have the expertise to run the new businesses
3. By acquiring new assets, are they confident that the authorities will approve it (come out from PN17)?
4. To increase the amount of special dividend to 60 sen instead of 35 sen.
5. If they are unable to acquire any assets within 2 years, will the company be privatized or by capital repayment?
6. Will there be a final dividend for this year?

Based on my opinion and experience, we should VOTE AGAINST THE EGM and tell the company not to buy new assets but instead, we ask the major shareholders to take the company private or by capital repayment at a reasonable price. The company has been in PN17 since 2011.

PLEASE VOTE NO AT THE EGM!