- Glenealy halts trading, faces grouses on privatisation price
Written by Ho Wah Foon of theedgemalaysia.com
Monday, 03 September 2012 11:14
KUALA LUMPUR (Sept 3) – A group of “disappointed and unhappy” minority shareholders, headed by one Patrick Low, said they will vote against the RM7.50 per share offer price for the privatisation of Glenealy PLANTATION s Bhd.
In a letter sent to Md Yusof Bin Hussin, independent director of Glenealy Plantations, they stated the offer price of RM7.50 per share by major owner Samling Strategic Corporation Sdn Bhd as “unreasonable” and said they wanted a fairer price, citing OSK Research has put a fair price at RM10.00.
In early trade, Glenealy called for a trading halt without stating any reason. The last traded price was RM7.25 per share.
In the letter to Md Yusof, which was also extended to the Securities Commission of Malaysia and Minority Shareholders Watchdog, the group said: “We merely hope that you all will treat us with fairness based on today’s market value of plantation land and unplanted land. Nothing more and nothing less.
“We will definitely vote against this resolution if you continue to mislead us with unfair valuations which are clearly lopsided in favour of the owners. Everybody knows the real value of the land so please give us some respect and don’t treat us as ignorant investors.
We expect you all to have conscience and practise good corporate governance and hope to hear for an improved and fair offer.”
The group argued that the offer price of RM7.50 is based on the valuation of RM25,000 per planted hectare of land, which they contended “is totally not realistic with today’s market” as recently transacted prices were close to RM 70,000.00.
They added that in a recent note, OSK Research had reported that the recent transacted price of Glenealy’s Indonesian Plantation was RM36,661 per hectare and based on this alone the share should be valued at more than RM10.00.