So much had been said about the shambolical Sime/E&O deal.So SC is reviewing the deal thoroughly. I could be wrong but that's something I don't see too often,
And yesterday Sime shares were spooked and Sime shares tumble on MGO worries.
Now let's think about it... I am not sure about you about I am certainly wondering about it. Ok, a MGO perhaps might be fair and it could benefit the minorities .... but then.....
Remember the Chairman? Yeah , And All The E&O Chairman Said Was 'He Was Not Aware .... '
Here's the so called transaction.
Changes in Director's Interest (S135) - Datuk Azizan Bin Abd Rahman
From that announcement he owns some 4,500,000 shares in E&O.
Just imagine... if Sime is forced to do the MGO.... errr.....
And then of course.... the conflict of interest .... the conflict of interest between SC Chairman and E&O Chairman....
Sigh.
Now this doesn't represent good corporate governance, does it?
And then...... what about the minority shareholders of Sime then? What would they be feeling if Sime is forced to make this MGO?
WTF are the stupid investment banks that are involved have to say about this?
ReplyDeleteAnd also think about this...
ReplyDeleteWith yesterday plunge in Sime shares, it created yet another 'negative' factor in the already fragile market.... and for those... who were caught by the 'sudden' negativeness in the market... surely... they would not be a happy camper.
They be asking... why is the market underperforming....
well... how could it not underperform when the conflict of interest between the SC chairman and her husband sticks out so sorely in the market....
E&O share price says: MGO will not go through
ReplyDeleteSime Darby share price says: MGO will go through.
Every day without decision of SC: more uncertainty.
Not good for CG in Malaysia.
What CG? Other matters there are datelines but on this E&O-SIME SC Chairman said "Will let you know when they're ready". No urgency at all. For good CG SC should state when the details will be announced.
ReplyDeleteDear All,
ReplyDeleteThis is what happens when GLC chiefs are chosen from an incestuous crop of 'executives' whose only credentials are being yes-men. There are two issues here, one of whether an MGO is required, and, the question of insider trading. If the SC is worth any salt, the MGO issue can be decided in 2 days instead of weeks. By lumping the two issues to justify delaying a decision smacks of under-counter and unethical dealings. Right now, the SC's reputation in lower than a pig's tits.
Hi Moo,
ReplyDeleteAh Wai is smarter just overnight :P
boony b: If Sime is forced to do the MGO, then what about the husband of the SC Chairman shareholding in E&O?
ReplyDeleteWouldn't his shares 'suddenly' be worth so much more?
And if so, then wouldn't SC be deemed of making a decision that 'indirectly' benefits its own Chairman?
See the problem?
Dear Moo,
ReplyDeleteNow, whatever the actions to be taken by SC or any other party cannot repair the damage done to the system in terms of integrity and confidence. As always, two wrongs can never make one right. Best course is for all these people to be removed from office in shame, and penalties appropriately meted out.
Yes, the whole deal was utterly shambolical in my opinion.
ReplyDelete