Tuesday, 20 September 2011
Bandar Raya: another RPT
It is a busy time for corporate Malaysia, one after the other Related Party Transaction (RPT) or General Offer (GO) with delisting threat. And why not, minority investors have hardly any chance to fight them. The authorities (Securities Commission and Bursa Malaysia) are only looking for form, not substance and are definetely not making any plans to improve the fighting chances for the minority investors. Who cares about them anyhow?
From the Business Times:
"Bandar Raya Developments Bhd (BRDB)'s board of directors have accepted an offer from Ambang Sehati Sdn Bhd to acquire some of its assets and liabilities in a deal valued at RM914 million.
Upon completion of the deal, BRDB is also proposing to pay RM390.12 million or 80 sen a share as cash dividend to shareholders, upon receiving the cash from Ambang Sehati.
Early this month, the BRDB board hired CIMB Investment Bank to evaluate the deal.
Ambang Sehati is 26 per cent-controlled by BRDB's chairman Datuk Mohamed Moiz Jabir Mohamed Ali Moiz. Moiz also has an 18.8 per cent stake in BRDB.
Will the independent directors or the authorities force Bandar Raya to open up the offer for outside parties. I don't think so.
And lastly, as Ze Moola rightly asked in his blog: why all the hurry?
More about this deal: