Friday, 3 April 2015

CMS and Corporate Governance

CMS announced a proposed acquisition of 50% of the shares of Sacofa for RM 187 Million.

An interesting comment was made by the managing director:

“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.’’

That is a rather remarkable statement, from a corporate governance point of view. Even if investors have genuine questions regarding this deal, they will not be answered for the time being?

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.

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