English

MSWG Weekly Newsletter 15 September 2023 (English)

Costly misjudgements at the expense of minority shareholders

There is little doubt that the optimism to ride on the EV boom cost Fitters dearly with a loss of RM26.3 million recorded on its book.

Amid brouhaha from the public, Fitters insisted that the acquisitions and disposals of Computer Form’s securities back in March 2023 were undertaken in the best interest of the Company after taking into consideration the rationale for the transactions.

With hindsight, Fitters may suffer even wider losses should it fail to dispose of CFM shares on time. However, such losses would have been avoided if not for the ill-timed investments into CFM. Damage has been done and the question is where the accountability should lie