Friday, 29 June 2012

MAS, where is the transparency? (2)

In addition to the previous posting on MAS, an new announcement has been made to the Bursa Malaysia.

a)        the parties in KLHC Suit No: S3-22-634-2006 will complete the Sale and Purchase Agreement dated 16 June 1997 (“SPA”) in which MAS purchased certain lands in Langkawi. MAS had sought to enforce the SPA by way of specific performance. This will result in the remaining land purchased (a 21 acre portion of the land held under HS(D) 623, Mukim Ayer Hangat, Daerah Langkawi) to be effectively transferred to MAS upon payment of the agreed balance purchase price of RM4,001,622.50 that is still outstanding under the SPA;

b)        all Counter-claims in KLHC Suit No: S3-22-634-2006, KLHC Civil Suit No: S7-22-487-2006 and SAHC Civil Suit No: MT3-22-365-2006 are to be withdrawn against MAS and parties related; and

c)        MAS and parties related will withdraw its claims in the above legal suits.

There is no adverse financial or operational impact on MAS arising from the settlement. MAS will not be incurring any financial or operational loss.

I find the announcement puzzling at best, and it throws up more questions than it answers, for instance:
  • What are the details of the SPA of 1997?
  • Why does it take 15 years to complete the SPA?
  • The claims against TSDTR and others were very specific and serious in nature, totalling many hundreds of millions of RM, why are they settled with a parcel of 21 acre land which even has to be purchased?
The claims, as detailed in the 2011 year report:

The Annual General Meeting of MAS has just been held, so shareholders have to wait almost one year to air their possible grouses regarding this settlement.

I doubt if they are happy with the performance, this is the 5-year chart of MAS:


  1. The Board that agreed to this must be held responsible.

    If they knew that they had no good chance why even sue in the first place.

    What happened in between that lead them to believe that they should drop the suit.

    What happens to the RM 90 Million that they were suing TR for?

    The irony is that this week AMMB had to settle a US SEC action for USD 1.6 Million!