- Published: 2009/04/02
The Minority Shareholder Watchdog Group said IOI Properties' (1961) minority shareholders are still a force in the long run despite being in an unlisted IOI Prop.
IOI Corp Bhd had on March 31 announced that it holds approximately 742.328 million ordinary shares of 50 sen each representing 91.33 per cent of the issued and paid-up capital of IOI Prop as a result of acceptances received under the voluntary takeover offer by IOI Corp.
Therefore, the public shareholding spread of IOI Prop as at March 31 has become less than 10 per cent, MSWG said in a statement.
IOI Corp does not want to maintain the listing status of IOI Prop.
MSWG said the minority shareholders who want to hold on and willing to ride along with the IOI Corp even if IOI Prop is delisted will still benefit from IOI Prop's performance in the long run.
Those who wish to remain in the unlisted entity of IOI Prop will have three consequences, MSWG said.
They will be locked in the unlisted IOI Prop with limited exit strategy for their unquoted IOI Prop shares held.
They could also be entitled to dividend payments declared by IOI Prop to IOI Corp in the future. However, it is at the board's discretion to declare dividends.
The rights of the minority shareholders in the unlisted IOI Prop will still be regulated under the Companies Act 1965. - Bernama
Well, if one is a minority shareholder and is utterly disgusted, I can understand why. It was just less than one year ago, a rights issue was exercised.
And yes it was just last January 2008 that IOI Corp had said ON RECORD that there would be no privatisation made on IOI Properties.
Well, as MSWG said, you DO NOT have to give in.
Fight for your RIGHTS!
Do not SELL just because they threaten with the delisting of the shares!
You can still remain a minority shareholder if you want. Just understand the consequences.
See past postings:
Did you see the timing of this announcement:
ReplyDeletehttp://announcements.bursamalaysia.com/EDMS/edmsweb.nsf/LsvAllByID/48256E5D00102DF548257586000F9F80?OpenDocument
Date of shares cancelled from : 27/03/2009 to 27/03/2009
Number of treasury shares cancelled (units) : 17,469,800
IOI Prop cancelled about 2% of the shares of the company that they had bought back in the past. Is it possible that without this 2% IOI Corp would not have reached the necessary 90%? If that is the case, then the minorities are really screwed, they happily approved the buyback program in the past, which is now used against them.
The timing is very peculiar, they never cancelled these shares until 27th March, announced it on the 30th March at the same day as which they announce that their shares will be suspended since IOI Corp owns 90.5% of the shares.
Maverick,
ReplyDeleteI do understand your point. And if what you are suggesting is true, here's another reason why one should not INVEST in a listed subsidiary!
ps: I have nothing against a company being taken private. I only HATE it when I see a listed company taking its own listed subsidiary private.
Everything is insanely lopsided against the minority.
Why bother investing in a stock when its holding can take it private whenever they feel like doing so?
You do not "HAVE" to sell... but you must realise that any shares you have there becomes as good as worthless.
ReplyDeleteSo, the only reason for holding onto them is merely to "protest".
Sigh.
Actually, many people have long had a lot of issues concerning majority shareholders totally abusing the subsidaries.
Sigh.