English

Ajiya’s RM250 million loans to Chin Hin – A strategic investment or risky bet?

In the realm of financial intrigue, the unfolding saga involving Ajiya Berhad (Ajiya) and Chin Hin Group Berhad (CHGB) presents a fascinating case where liquidity, expansion, and potential conflicts of interest intertwine.

Ajiya’s recently announced RM250 million loan to CHGB is dubbed as a strategic investment, carrying a 7.5% interest rate per annum. This rate is higher than some of CHGB’s current borrowing costs, which range from 3.48% to 8.07%. This raises questions about the attractiveness of the returns to Ajiya, given CHGB’s risk profile.

MSWG Weekly  Newsletter 7 June 2024 (English)

Recently, we have seen a number of PLCs targeted for M&A as controlling shareholders seek to reposition their businesses in an evolving market.

MSWG suggests minority shareholders conduct thorough analyses before reacting to takeover offers. They should do comprehensive analyses by looking into the details of the proposals from both the offer documents/Circular as well as that of the independent advice circular/letter.

31.05.2024

Risk diversification - Don’t put all eggs in one basket

From Guan Chong to InNature, their challenges have adequately illustrated the criticality of sound and robust risk management.

Risks are constantly evolving. They may stem from multiple sources, including financial uncertainties, legal liabilities, technology issues, strategic management errors, accidents and natural disasters.

It has become imperative for PLCs to be cognisant of wide-ranging disruptive factors, from the sourcing of raw materials to the manufacturing and selling of the finished products.

MSWG Weekly Newsletter 24 May 2024 

P.I.E Industrial disclosure of order wins draws scrutiny

Recent developments in P.I.E Industrial (PIE) raised several pertinent questions about its disclosure of material information.

Notably, its share prices surged by 47% within the three days preceding its announcement of major order wins on 19 April 2024. It was later found that PIE had already secured the orders on 31 March 2024 but only announced it two weeks later. 

Additionally, its disclosure of contract values also drew scrutiny. Based on the timeline, PIE disclosed the price-sensitive information to the press before it was officially announced to the Stock Exchange.