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Institutional investors, by virtue of their substantial shareholdings, can influence the market – their sell-downs may affect the share price of investee companies, and their investments would raise the profiles and brand values of their investees.

So, how will our big brothers, who are signatories to the MCII, vote when it comes to some CG issues?

Last month, Mulpha International Bhd announced that it had received an unconditional voluntary takeover offer from several joint offerors (the controlling shareholder, the Lee family) to acquire all the remaining shares not already held by them for RM2.30 per share in cash.

We believe that when it comes to a takeover offer, minority shareholders must ask a few pertinent questions before deciding whether to accept the offer. Some of these questions are:

•            What is the rationale for the offer?

•            Is the offer price fair and reasonable?

•            What are the options available and their implications to minority shareholders?

•            Do the joint offerors intend to maintain the company’s listing status?