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On the Edge:
- Glenealy minorities to protest despite special dividend
Written by Ho Wah Foon of theedgemalaysia.com
Wednesday, 12 September 2012 10:22
KUALA LUMPUR (Sept 12) – Disgruntled minority shareholders of Glenealy PLANTATION  (M) Bhd will go ahead to protest against the privatisation price of the company at its EGM tomorrow (Thursday) despite a high special dividend declared yesterday.
To appease shareholders, the company yesterday declared a special dividend of 52.75 sen per share for the year ended 30 June 2012 totalling RM60.18 million. This move sent the stock up by 40 sen or 5.5% to RM7.70 in early trade today.
This special dividend is in addition to the interim dividend of 5.0 sen per share less tax and the single tier tax exempt interim dividend of 3.5 sen per share declared on 30 August 2012, the company added.
But a group of unhappy minority shareholders headed by Patrick Low told theedgemalaysia.com today they will still go ahead to protest against the privatisation price of RM7.50 fixed by the company.
“We are still not happy. From day one it is about principle and not about Glenealy alone. Proper valuations have to be done. We are sick of listed companies as they are ripping minorities. We will still protest for the good of our nation’s future,” said Low.
Glenealy’s non-interested shareholders are slated to meet on Thursday (Sept 13) to vote on the proposed privatisation of Glenealy by major shareholder Samling Strategic Corp Sdn Bhd at RM7.50 per share.
The privatisation could not be carried out if the number of votes cast against the proposed privatisation at the meeting is more than 10% of the votes of non-interested shareholders present.
Earlier this month, Low sent a letter to the company and securities regulators suggesting the privatisation price to be revised upwards to RM10.00, saying recent sales of other plantation lands and an OSK Research report lent support to their proposition.
OSK Research had in a September 4 note described the privatisation offer as “cheap”.
The letter was also copied to the CEO of the Minority Shareholder Watchdog Group (MSWG), Rita Benoy Bushon, who in response urged regulators to “compel a new valuation method” so that minority shareholders get fairer valuations in privatisation offers, especially in companies involving “fairly large PROPERTIES  and fixed assets”.
In the letter, which was also sent to the press on Sept 3, Low and his fellow shareholders described the offer price as “unreasonable” and asked for a fairer price.
“Everyone knows the real value of the land so please give us some respect… hope to hear an improved and fair offer,” the letter read.