Those minority with MAA need to fight for fair and reasonable price attend the EGM or send in your proxy to people who going to attend the meeting. Every single vote count.
Hi all, I am new to this blog, just joined, but some of you may remember my shareholder activism in the past https://www.thestar.com.my/business/business-news/2009/03/27/dissolution-of-ahp2-trust-to-benefit-unitholders/ https://www.thestar.com.my/business/business-news/2012/11/09/not-a-hostile-takeover/ My group of investors have collected more than 2% of the outstanding MAA shares with the intention of fighting for a fairer offer price. In order to talk to the offeror from a position of strength, we will need an indication of the number of hands or proxies that will vote against the offer as it stands. Time is running out, so please indicate the numbers here ASAP. A single shareholder can appoint a maximum of only 2 proxies, so we need bodies/hands, not shareholdings.
Just to clarify, even though a shareholder can only appoint a maximum of 2 proxies, there is no limit to the number of proxies that a shareholder can represent at the meeting, this is same as appointing the Chairman of the meeting as your proxy, except that instead of the chairman, it is another person. Each separate proxy counts as one vote by the absentee member.
You can join our MAA minority group we are terming up to fight for common cause. You can email:markus_see@yahoo.com. For more detail.We have the number already on paper to block.
That's why there is fundamental BIG DIFFERENCE between MAA and other SCRs ...
Before the SCR, Daiman already owns 53.38% , Selangor Properties already owns 68.25%, Suiwah&PAC already owns 52.08% .
MAA, the Offeror owns 38.6% (less than 50%)
I am not saying it's easy. ASSUMING, the minority or any fund can get consent or support of the remaining 61.4% , you can control the Board (with simple majority 51%). I heard that some foreign fund is accumulating MAA shares. I cannot verify this info. I hope it is true. I will definitely give support to the fund to protect and represent the minority.
The previous mentioned other companies , you cannot control the board anymore. Maybe Offeror may have hidden party acting in concert (PAC) not disclosed; but I doubt that coz that would be against the law. So I rule that out. MAA shareholders are quite disperse. Eg. If the no 5 largest holder is really the DBS Bank Ltd of Singapore, they will not entertain this nonsense from the Offeror. DBS Bank Ltd, if you are reading this, we need you to be there at the EGM at vote AGAINST the nonsense
We hope with others onboard, we will request the directors to convene a new meeting for a NEW resolution. To ask for a vote of special dividend or cash repayment of RM0.675 per share given to ALL shareholders (yes including to the Offeror). To convene a shareholders meeting, we need 10% of the TOTAL shares value and then write in. That will be Chapter 2 It will be made known to the Board during the AGM of our intention. But I bet they have people reading here already.
Question is.... Whats in it for me??? I'm a simple investor. A lot of ifs... And assumptions of what would happen and what should happen...
For me I would take the cash and re-invest in the next counter. Take my 50sen gain. In this market situation, better be safe than sorry. My 2 cents worth.
Regarding DBS, let me tell u a story i experienced.
3 yrs ago. Huang family wanted to privatize Huang-DBS at 2.75. In the offer letter, was already stated DBS won't accept the offer, after seeing this, I also didn't accept the offer.
This resulted I was holding a delisted counter, but, I still received the dividend. After 1 year, Huang family offer 2.94 for those remaining shares they don't possessed. DBS accepted the offer, i also followed. So, the effective offer price was 2.97 (3sen dividend).
DBS received 22 sen higher than ordinary investors that accepted the offer, (although it was 1 year later). I think I'm an very rare individual that follow DBS (bcos it took risk to hold an delisted counter). In this case, i may say DBS successfully fighting for its own, but not other investors.
MAA case is a little different from Huang-DBS, bcos this is a SCR while the Huang-DBS was an direct offer, this result DBS bonded togather with other investors .... personally, i hope DBS votes against the SCR proposal.
MAA has cash and SCR is trying to rob the other share holders(61.4%) of their rights to the cash. They say it is fair. Fair to whom? You have to fight for your right or they will eat you as i have said.
I’ve been folowwing this thread quietly in hopes of reading some good guidance. There has been lots of arguements written but no solid case put, especially against. There is always a disclaimer of sorts when examples are given like “MAA’s case is a bit different”, the quantum is different, etc. I tend to agree with momony and cash out. Dividends has been at around 6%. How long will that take to equal the premium offered? Its the “Bird in Hand” saying, I’d say.
In the end, it's all about our risk appetite. The delisting risk mentioned above is reason enough for me to encourage us to collectively take the money and run. I'm not one to be greedy, instead, I prefer to look at this on face value. What is the alternative... On one hand I have an offer that is already good... Risk that to fight for my rights (as if)... As said earlier, I am a simple investor... My goal is to make good returns... This proposal does just that for me. Why fight... and maybe win... but Maybe LOSE!!!
MAA now has no core business, and not comply to KLSE regulation ...... i if the SCR fail, the directors hv to look for other solutions, including rising the take-over price ......
I recall the case of Mbf, Mbf was founded by Loy HH, finally it was controlled by Ninian (an Indian). After selling the finance business to Am Bank, it has no core business (very similar to MAA now) .... and the share holding spread was not up to KLSE R&R, after dragging many yrs the controlling shareholders had to find a solution, this included at least two times of iake-over offer (can't remember exactly, bcos was many yrs away), the controlling shareholder rising the take-over price substantially (from around 1.20 to 1.80, roughly, can't remember exactly .... )
Holding a no core business ctr, i think the controlling shareholder is more troubled some than ordinary investors, they can't just delist it like that (due to not comply KLSE R&R) without a solution ......
In the Mbf case, the difference was the offer price between two take -over offers ..... not about appoint a representative to negotiate with offeror..... not likely the offeror will compromise without encounter failure ....... (in Selangor properties, it was, but it was a very rare case and the rising amount was very little)
Who are frightened can leave now, no point trembling for extra 5 to 8 cents for now and a few months on (if SCR success) since they think selling cheaper 10 to 20 cents is acceptable.
Let us talk about the PN17 status and the extension, if granted by bursa. Assuming maa finds a new business. What price will they pay? What guarantees do we have that the business will give good dividend returns & when? For sure, the cash is gone, to finance the purchase. And with it the opportunity for us to cash out with a known amount. I say again, we have an opportunity now to cash out with a good return. Take the money and run. Whether a big portion of the cash goes to the offeror under the SCR or any future business acquisition (if SCR is rejected and if maa manages to acquire a new business), to me it would be the same, our opportunity to get a certain return is gone.
1. Reject the SCR AND change the board so that majority is in your control.
2. Accept the offer.
I am also seeing what all of you are seeing....there is a giant amount of cash in the company. But u must also realise that the conpany's operating cash flow has been negative for past few years....they are burning cash. If you reject the offer, I can assure you that 10 years down the road, the cash u see now will be evaporated. The company looks mismanaged and the directors and management will sapu all the cash over the next 10 years.
So it's either u accept the offer at 1.10 or reject AND change board. If u all have no power to change board to be majority in your favour, accept the offer because you can be assured that 10 years down the road, MAA is worth nothing. If u cannot change the board, you all will be destroying value for all those who want to accept the offer and get RM1.10
I don't have the money to accumulate so much share of MAA.I have very small amount of shareholding in it.And it not for me to block or accept the SCR it the majority of minority shareholders to decide it is fair or unreasonable. 18/05/2019 10:33 AM
I am not misleading anybody why not you go and buy The Edge this week edition ( paragraph 19 to 20) page 19 and The Star.You will get some idea what happening
We are ALL OUT to REJECT THE SCR offer . Even Mercury Securities as Independent Advisor mentioned deal is unfair . Suddenly we have so many new Gepohs coming here to change our minds . Last time it was Danny123 n he disappeared. If it's your boys TY, pls don't waste your time here to trying hard to change our decision . Like what Theong said get today's Edge and The Star for those who have not make up their minds . It is easily worth more than RM1.80
Unlike an MGO or VGO, in an SCR the offer price cannot be revised once the EGM is called. And if the SCR is not approved at the EGM, the Offerors cannot make another offer for the next 12 months.
If SCR fialed, TY can come back with VGO. He can first declare lucrative dividend to decrease NAV and increase his fortune to buy over minority share. In both case, he can use co money to fund his move. So don't too worry if SCR failed.
For a comparison of how generous the SCR offer is compared to recent cases, take a look at this https://1drv.ms/x/s!AgLvGZpm89Yskj8c1XUUcaN5NDon There has been only one failed SCR exercise in recently years, Ireka, which was offered at the same discount to NAV as the present one. So now management is allow you to withdraw your own share of the capital from the company after a steep haircut and you are supposed to thank them for giving you the opportunity to do so, how reasonable of them. The company is worth more dead (unlisted) than alive and that is why they want to kick out the minorities.
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
theong
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Posted by theong > 2019-05-10 12:34 | Report Abuse
Those minority with MAA need to fight for fair and reasonable price attend the EGM or send in your proxy to people who going to attend the meeting. Every single vote count.