Sunday, August 28, 2011

And What About The Shambolical Effort To Take PMI Private?

Posted on CGMalaysia.blogspot : PMI: a sad story for Minority Shareholders

  • "Pan Malaysian Industries Bhd (PMI) yesterday told Bursa Malaysia that it had received an unconditional takeover offer from a consortium of three companies at a cash offer price of 4.5 sen for each offer share."
  • The "infamous" GO (General Offer) with "delisting threat" against which Minority Investors hardly have any chance to fight unless they don't mind ending up with shares in an unlisted company (and even then their shares could be Mandatory Acquired). The price is only 4.5 sen, that sounds like a bloody shame, the share traded routinely higher than that, even in 2011:

    In the past 10 years several right issues which equal to negative dividend payments (from the investors to the company, if people don't subscribe they get further diluted at a low price). It booked routinely losses but due to the tight control through its Majority Shareholder it could not change its management, hoping for a new team to restructure the company.
I would like to highlight the rights issue.
1. 18 May 1993. A 4 for 1 rights issue at 80 sen.
2. 31 Jul 1998. A 1 for 1 rights issue at 50 sen.
3. 19 Jun 2000. A 1 for 1 rights issue at 55 sen.
And lastly it had a 2 into 1 share consolidation.
You think minority shareholders are laughing all the way to the bank with this generous offer of 4.5 sen?
Ps; Try reading this posting dated 18 Dec 2007: PMI's rescue package
And also this posting dated 19 Dec 2007: What about MUI Ind?


ronnie said...

He's got the whole world in his hands. He's got the whole world in his hands.

M.A. Wind said...

Please look at the 2011 yearreport of PMI:$FILE/PMIIND-AnnualReport2011%20(738KB).pdf

Only 1 independent director, Ooi Boon Leong who is the chairman of .... Pan Malaysia Holdings, which is 69% deemed to be controlled by ... PMI!

Oh my, from a CG point of view this is a bloody joke!