Thursday, 9 April 2015

CMS and Corporate Governance (2)

I wrote before:

"I would recommend shareholders (major or small) of CMS to forward their questions regarding this deal to Bursa Malaysia, who can then (possibly including own questions they might have) issue an official query to CMS. 

Those queries have to be answered within one working day, not until the sale and purchase is concluded. Let's see if CMS still will not make any further comment."

Bursa did indeed query CMS and CMS needed not one, not two, but three announcements to answer the queries (here, here and here).

The answer on the eighth question:

On behalf of the Board of Directors of CMSB, Kenanga Investment Bank Berhad wishes to provide clarification on the following statement in the press release:

"While CMSB understands that our major stakeholders will have many questions about this acquisition, we have no further comment to make until the sale and purchase is concluded, at which time we will make a further statement."

The above statement is meant to inform CMSB stakeholders that CMSB will make further necessary announcements once CMSB has completed the due diligence exercise and firmed up CMSB’s plans for Sacofa.

I would like to add: "except when the query comes from Bursa, then CMSB will respond in one working day".

Kinibiz also wrote about the above issue, but also from another dimension: that the deal might be good for CMS shareholders, and thus bad for the state government of Sarawak, the seller of the shares. Not only should CMS be more transparent, but also "It is imperative that the state government clear the air on whether Sacofa is being sold on the cheap or not before the deal is done.".

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