If you see a listed company comes up with a proposal and you think it stinks so bad, it is your right to vote. And when you don't vote, these stinking deals will pass. It's so simple.
The very least you can do is attend the EGM and voice out why you think the deal is not fair to you, the minority shareholders. It is your right. It is your money.
And when you do not attend then most likely than not, these unfair deals would repeated over and over again.
And that is why the minority shareholders get the short end of the stick.
Unless you are the smarter ones and you had already voted with your feet!
Yesterday, it was voting day for MMC and it's rather absurd Senai Airport deal.
- MMC shareholders say Yes to Senai Airport deal
By Adeline Paul Raj Published: 2009/03/21
MMC Corp Bhd's (2194) shareholders approved its controversial plan to buy Senai Airport Terminal Services Sdn Bhd (SATS) for RM1.7 billion despite strong objection from minorities.
At an extraordinary general meeting (EGM) yesterday, which dragged on for four hours, minority shareholders were vocal, making it clear they were against MMC paying such a hefty price in the related-party deal.
MMC is owned by Tan Sri Syed Mokhtar Al-Bukhary, who is also a shareholder in SATS.
"The minorities were very unhappy and almost wanted to stage a walkout. But we managed to tell them not to do so, and vote," said Minority Shareholder Watchdog Group (MSWG) chief executive officer Rita Benoy Bushon, who attended the EGM.
Bushon said the MMC chairman had invoked his discretion to have a poll instead of a vote by hands and, in the end, 97 per cent voted in favour of the deal.
This was because minority shareholders were few in number. The majority of the non-interested parties who could vote on the deal comprised institutional investors.
MMC is to pay RM580 million for SATS' loss-making Senai Inter-national Airport and RM1.12 billion for land which will be developed as an "airport city".
"I'm not against them buying SATS; it's just the price. It's a valuation argument, that's all," a minority shareholder said.
He, and others, was irked that valuations were based on projected values rather than the current value.
Some felt that MMC, which has some RM20 billion debt, should be preserving its cash now that the economy was slowing down. Others felt that it should wait for a better price.
For MMC, the buy enables it to exploit SATS' potential to become a regional cargo and logistics hub.
MMC chief executive officer Hasni Harun did not face the press yesterday, but in a statement reiterated that the SATS purchase was commercially viable and in the long-term interest of the group and stakeholders.
"With this, MMC will own the only privatised airport in the country and it will create value to the group's transport and logistics business," he said.
Asked if she was happy the deal would go through, Bushon replied: "I had expected that the board would have somehow looked at the valuation again."
She said the board had given assurance, however, that it would be accountable for the purchase. The deal is expected to be accretive in two years.
Past postings:
I completely agree with you, a very sad day. And again, those useless institutional investors voted with the big boys. When are they finally going to stand up, and be counted? In the US these same kind of investors never raised their votes against the monstrous bonusses, and see what a mess we end up with.
ReplyDeleteBy the way, they expect that 21.2 million passengers (mind you, not 21.1 million or 21.3 million but 21.2 million) are expect to use Senai in ....... 2053! Hahaha, what a jokers, who can predict something like that so far in the future. May be by then we land small airplanes on our roof, dont need an airport anymore.
These "independent" advisors, they do more harm than good. Better stop using them, they are a complete waste of time and money.