tag:blogger.com,1999:blog-6833372664905554734.post4508476083202280658..comments2024-03-23T03:41:27.086+08:00Comments on Corporate Governance in Malaysia: Horrible deal for Hirotako Warrant holdersM.A. Windhttp://www.blogger.com/profile/16833927103193297126noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-6833372664905554734.post-44611562622851005412011-12-31T22:46:02.872+08:002011-12-31T22:46:02.872+08:00I am afraid I don't know, I haven't seen t...I am afraid I don't know, I haven't seen this happen yet in Singapore, an offer for the shares of a company when there are warrants outstanding.<br /><br />From what I quickly read, an EGM for warrant holders MAY be called, vague language, useless, either they have to call it or not. They get away with not calling it, meaning the warrant holders don't have much rights at all, very surprised by that, surely that is wrong and should be dealt with.M.A. Windhttps://www.blogger.com/profile/16833927103193297126noreply@blogger.comtag:blogger.com,1999:blog-6833372664905554734.post-22243048328306654632011-12-31T22:19:44.531+08:002011-12-31T22:19:44.531+08:00Wonder if warrant holders face similar issue in Si...Wonder if warrant holders face similar issue in Singapore? And is there any regulation in Singapore that addresses this issue.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6833372664905554734.post-64636547795568047792011-12-31T22:03:36.305+08:002011-12-31T22:03:36.305+08:00Me too, but I don't think the adviser will eve...Me too, but I don't think the adviser will ever clarify .....<br /><br />But where are the authorities?<br /><br />I am not a legal expert, but I get the impression that only the shareholders had a chance to vote at an EGM, and they voted in favour (not a surprise). But why did the warrantholders not get a chance in their own EGM, I am sure they would all have voted against this deal. And that would have forced MBMR to come with a better deal.M.A. Windhttps://www.blogger.com/profile/16833927103193297126noreply@blogger.comtag:blogger.com,1999:blog-6833372664905554734.post-16486118422944966132011-12-31T21:56:26.221+08:002011-12-31T21:56:26.221+08:00"If the adviser finds tradeability reasonable..."If the adviser finds tradeability reasonable (as you suggest), then all offers are reasonable by definition."<br /><br />Exactly!<br /><br />At offer price of merely 5 sen, they still have the "conscience" to comment that it is reasonable, incredible... Malaysia Boleh<br /><br />Yup. That's the point I wish the "independent" adviser would clarify...Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6833372664905554734.post-89636837309179650892011-12-31T21:46:45.171+08:002011-12-31T21:46:45.171+08:00Thanks for your comment.
The warrant still had m...Thanks for your comment. <br /><br />The warrant still had more than 4 years to go, if the share price woiuld go to say RM 1.42 (very reasonable assumption, Hirotako is a good company and the current price is not expensive at all at RM 0.97) then the warrant would be worth RM 0.50, 10 times as much as what they received. <br /><br />Downside RM -0.05, Upside RM +0.50<br /><br />Is that reasonable?<br /><br />If the adviser finds tradeability reasonable (as you suggest), then all offers are reasonable by definition. And thus all have to be voted in favour, and that is indeed always their suggestion.<br /><br />Caught between a rock and a hard place, but surely that should not be the case. It is very clear in the rules that minority shareholders / warrant holders should not be in that place, should not be pressured, should receive a fair treatment.<br /><br />I am simply amazed how badly the warrant holders were treated, but aparently nobody cares. It slipped my attention, otherwise I would have written about it before. Not that it would have made a difference.M.A. Windhttps://www.blogger.com/profile/16833927103193297126noreply@blogger.comtag:blogger.com,1999:blog-6833372664905554734.post-85871514646883084272011-12-31T19:41:11.938+08:002011-12-31T19:41:11.938+08:00In this case, it seems when the independent advise...In this case, it seems when the independent adviser evaluated the reasonableness of the warrant offer price, the offer price seems irrelevant but the tradability of the warrant.<br /><br />It is just short of saying you have very limited choice but to sell the warrant at any price offered even if the warrant offer price is less than 5sen/ warrant.<br /><br />Else, at what price the independent adviser would feel the offer is unreasonable?Anonymousnoreply@blogger.com