And Ambang Sehati Is Rewarded With 73.6 Million From Their Purchase Of BRDB's Prime Assets

From Bandar Raya Development Bhd's annual report:

• INVESTOR RELATIONS
  
  Dialogue Between The Company And Investors The Board recognises the need for and the importance of effective communication with shareholders as well as potential investors and the public. T he Group communicates with its shareholders and stakeholders regularly through timely release of financial results on a quarterly basis, press releases and announcements which provide an overview of the Group’s performance and operations and disclosure of material information. In addition, the Group has established a website (www.brdb.com.my) which shareholders and members of the public can access for corporate information and news/events relating to the Group and for channelling their queries.

That was their pledge. They wrote that in their annual report.

They recognised the need for and the importance of effective communication with shareholders. They also announced the importance of the disclosure of material information.

However, when Bandar Raya announced that the Chairman had offered to buy assets from the compan in yet another LUDICROUS RPT Transaction, all that was announced that the board was just given two weeks to reply to the offer.

Just two weeks. WTH!

They didn't even have the decency to disclose the offer price to the investing public.

So what's the point of making that pledge in their annual statement?

Does Corporate Malaysia ever keep their words? Or is really talk so cheap from Corporate Malaysia.

I wonder.

And the manner of the offer was utterly ludicrous. Two weeks to accept the offer! Was the world coming to an end that Bandar Raya had to make such a rush decision?

And the board decision?

http://www.theedgemalaysia.com/business/193128-flash-brdb-to-reward-shareholders-with-80c-a-share.html

• BRDB to reward shareholders with 80c a share
  Written by Chua Sue-Ann of theedgemalaysia.com
  Monday, 19 September 2011 20:15
  
  KUALA LUMPUR: Bandar Raya Development Bhd's (BRDB) board has accepted the offer from major shareholder, Ambang Sehati Sdn Bhd, to acquire four of BRDB's investment assets for RM430 million net of liabilities of RM484 million.
  BDRB said on Monday, Sept 19 that following the proposed disposal, BRDB would distribute part of the proceeds to the shareholders via a net cash dividend of 80 sen per share.
  
  Ambang Sehati - which owns 18.88% of BRDB - had on Sept 5 proposed to acquire BRDB's four investment PROPERTIES [], namely CapSquare Retail Centre, Permas Jusco Mall, Bangsar Shopping Centre and Menara BRDB.
  
  The four properties have a total net lettable area of 907,817 sq ft and a total carrying value RM942.4 million, according to BRDB's latest annual report.
  
  Ambang Sehati's shareholders include BRDB chairman Datuk Mohamed Moiz JM Ali Moiz, Datuk Seri Akbar Khan Mohamed Khan and Abdul Sathar MSM Abdul Kadir.
  
  BRDB chief executive officer Datuk Jaganath Sabapathy said the board would table the offer to shareholders by the end of this year.

Four prime assets sold for RM430 million net plus liabilities of RM484 million???

Their pdf announcement can be downloaded  here

I would like to look at that so-called deal sweetener, that 80 sen per share carrot.

So BRDB is going to use 390.121 million from the sale of these assets and used it as dividends.

And each shareholder is to be rewarded some 800 ringgit for every 1,000 shares held.

But is it really a reward?

Or let me put it this way, for whom does this 'reward' benefit?

Think about this...

Ambang Sehati owns some 18.8% shares or some 92,070,812 shares. 

A 800.00 per 1,000 shares 'reward' will mean that Ambang Sehati will get some 73.6 million!

Now isn't this sweet.

They buy these prime assets, and they are also rewarded 73.6 million for this purchase of prime assets!

How?

Insanity?????

Or is it just plain ludicrous???

Goodness me!

And tell me, is this 914 million purchase of these 4 prime assets even fair?

Do check their so-called valuation method posted in the Bursa announcement here: http://announcements.bursamalaysia.com/EDMS/edmsweb.nsf/all/FF67....pdf

Is it even fair?

Do tell me!

Four prime assets sold at a time when currently there is huge demand of shopping malls from local and foreign buyers!

Sold within two weeks!

Comeon....

If BRDB wanted to sell, if they put in an effort, I am sure they would get a much better price than what's offered!

Seriously? I think RPT should be stopped!

WTH!

Just what is wrong with Corporate Malaysia????