07 April 2017
MSWG’S QUICK TAKE ON-ONGOING CORPORATE DEVELOPMENTS
MASTER-PACK GROUP BERHAD (“MPB”) / GLOBETRONICS TECHNOLOGY BERHAD (“GTB”)
As reported in the media on 31 March 2017, the Malaysian Anti-Corruption Commission (MACC) has remanded MPB’s Group Executive Chairman Dato’ Syed Mohamad Bin Syed Murtaza for investigations involving Yayasan Bumiputra Pulau Pinang Bhd, which is one of the major shareholders of MPB. Datuk Syed Mohamad is also an Independent Non-Executive Director in GTB.
MSWG’S COMMENTS:
Both MPB and GTB in their announcements made on 31 March 2017 stated that the remand of Dato’ Syed Mohamad by MACC would not or not be expected to have any operational, business or management impact on their companies. We hope that Dato’ Syed Mohamad would voluntarily take a temporary leave of absence amid the MACC’s investigation.
MSWG’S AGM WEEKLY WATCH 10 – 14 APRIL 2017
For this week, the following are the AGMs/EGMs of companies which are in the Minority Shareholder Watchdog Group’s (MSWG) watch list.
The summary of points of interest is highlighted here, while the details of the questions to the companies can be obtained via MSWG’s website at www.mswg.org.my.
|
Date & Time |
Company |
Venue |
|
52nd - 13.4.2017 (Thursday) at 9.30 a.m.
53rd - 13.4.2017 (Thursday) at 11.00 a.m. |
Heineken Malaysia Berhad (AGM) |
Grand Ballroom, Connexion @ Nexus, No. 7 Jalan Kerinchi, Bangsar South City, 59200 Kuala Lumpur |
|
The points of interest to be raised: |
|
|---|---|
|
Company |
Points/Issues to Be Raised |
|
Heineken Malaysia Berhad (AGM) |
1) Please enlighten shareholders on the negative implications on the Group’s performance amid the enforcement of the Price Control and Anti-Profiteering Regulations 2016 and the significant hike in beer duties, ranging from 10% to 99%, effective 1 March 2016.
2) The receivables, deposits and prepayments had substantially increased from RM296.3 million to RM448.0 million in financial period ended 2016 (“FPE 2016”). We also noted the cash flows change in receivables, deposits and prepayments in FPE 2016 were significantly higher than the cash flows change in financial year ended 2015. Please explain. |
MSWG’S WATCHLIST
IGB CORPORATION BERHAD (“IGB ”)
The Board of Directors of IGB (“Board”) had on 23 February 2017 received a proposal from Goldis Berhad (“Goldis”) on the proposed acquisition by Goldis of the entire equity interest in IGB not already owned by Goldis, by way of a members' scheme of arrangement pursuant to Section 366 of the Companies Act, 2016, between IGB and all the shareholders of IGB, other than Goldis (“Proposed Scheme”).
However, IGB announced that it had written to Goldis on 30 March 2017 requesting for an extension of time up to 5.00 p.m. on 28 April 2017 to evaluate the Proposed Scheme.
[Source: IGB’s announcement on Bursa Malaysia’s website on 23 February 2017 and 30 March 2017]
KUANTAN FLOUR MILLS BERHAD (“KFM”)
The Board of Directors of KFM announced that the company:
(i) proposes to undertake the following proposals to regularise its financial condition in accordance with Paragraph 8.04(3) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad:-
- proposed private placement of 20,467,000 new ordinary shares in KFM (“KFM Shares”), representing approximately 30% of the existing total number of KFM Shares in issue, to a placement investor;
- proposed renounceable rights issue of up to 221,740,210 new KFM Shares (“Rights Shares”) on the basis of five (5) Rights Shares for every two (2) KFM Shares held on an entitlement date to be determined later; and
- proposed restructuring of debts owing by KFM to its creditors.
(ii) had on 29 March 2017 entered into a business collaboration agreement with Lotus Essential Sdn Bhd.
[Source: KFM’s announcement on Bursa Malaysia’s website on 29 March 2017]
REGULATOR’S REPRIMAND LIST OF THE WEEK
|
No. |
Regulator |
Companies / Directors |
Reasons |
|---|---|---|---|
|
1 |
Bursa Malaysia |
Syed Omar Bin Syed Mohamed |
Bursa Malaysia has publicly reprimanded and imposed a fine of RM30,000 on Syed Omar Bin Syed Mohamed (SOSM), the former Managing Director of Damansara Realty Berhad (DRD) as well as the former Chief Executive Officer and Executive Director of Nexgram Holdings Berhad (Nexgram) for breach of the Bursa Malaysia Main Market Listing Requirements (Main LR) and ACE Market Listing Requirements (ACE LR) respectively.
SOSM had submitted and / or caused DRD and Nexgram to submit inaccurate and false / misleading statements pertaining to his qualification as a holder of a Bachelor of Accounting and Finance degree in various announcements of DRD and Nexgram as well as the annual reports of DRD.
[Date: 31 March 2017] |
|
2 |
Bursa Malaysia |
Tecnic Group Berhad (Tecnic) Dato’ Gan Kim Huat Gan Poh San Teo Chee Kok |
Bursa Malaysia has publicly reprimanded Tecnic and 3 of its directors, namely Dato’ Gan Kim Huat, Gan Poh San and Teo Chee Kok for breaching the Main LR. In addition, the 3 directors of Tecnic at the material time has been fined a total of RM150,000.
Tecnic had breached the Main LR in respect of the company’s announcement dated 7 September 2015 which was its response to the unusual market activity query (UMA Query) from Bursa Malaysia Securities.
[Date: 3 April 2017] |
LOCAL NEWS AND DEVELOPMENTS
February producer price index rises 10.8%
http://www.thestar.com.my/business/business-news/2017/03/31/february-producer-price-index-rises/
SSM: Interest scheme can be alternative source of funding for SMEs
Market not ready for open short selling yet
http://www.thesundaily.my/news/2214031
FMM: Defer and review Employment Insurance Scheme
SC Charges Three Individuals for Insider Trading of PacificMas Bhd Shares
Bank Negara: February loan growth slows to 5.3%
http://www.theedgemarkets.com/my/article/bank-negara-february-loan-growth-slows-53?type=Corporate
Trump to name and shame trade ‘cheats’, including Malaysia
New amendments to bankruptcy law passed
http://www.theedgemarkets.com/my/article/new-amendments-bankruptcy-law-passed?type=Corporate
GLOBAL NEWS AND DEVELOPMENTS
Wall St slips as investors lock in gains of strong quarter
China to create new economic zone outside Beijing
http://www.themalaymailonline.com/money/article/china-to-create-new-economic-zone-outside-beijing
China central bank injects $89.9 bln of liquidity in March
China March factory activity grows fastest in nearly 5 years — official PMI
Lawmakers in India approve uniform GST regime
Westinghouse files for bankruptcy
http://www.thestar.com.my/business/business-news/2017/03/30/westinghouse-files-for-bankruptcy/
Singapore Exchange files complaint with China authorities against China Fibretech’s CEO
MSWG Analysts
Lya Rahman, General Manager, [email protected]
Rebecca Yap, Head, Corporate Monitoring [email protected]
Quah Ban Aik, Head, Corporate Monitoring [email protected]
Norhisam Sidek, Manager, Corporate Monitoring [email protected]
Wong Kin Wing, Manager, Corporate Monitoring, [email protected]
Hoo Ley Beng, Manager, Corporate Monitoring [email protected]
Nor Khalidah Khalil, Analyst, Corporate Monitoring [email protected]
Vinodth Ramasamy, Analyst, Corporate Monitoring [email protected]
Muhammad Faris bin Mohamed Yusof, Analyst, Corporate Monitoring [email protected]
DISCLOSURE OF INTERESTS
• With regard to the companies mentioned, MSWG holds a minimum number of shares in all these companies covered in this newsletter save for Globetronics Technology Berhad, Goldis Berhad and Kuantan Flour Mills Berhad.
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The contents and the opinions expressed in this newsletter are based on information in the public domain and are intended to provide the user with general information and for reference only. Best efforts have been made to ensure that the information contained in this newsletter is accurate and current as at the date of publication. However, MSWG makes no express or implied warranty as to the accuracy or completeness of any such information and opinions contained in this newsletter. No information in this newsletter is intended to be or should be construed as a recommendation to buy or sell or an invitation to subscribe for any, of the subject securities, related investments or other financial instruments thereof.
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