The news is not unexpected, but still it is bad for the minority investors of SP Setia. The share price has not performed well recently, probably in anticipation of these events, especially considering the almost all time high valuation of the CI:
Aberdeen Asset Management Asia last year already ceased to be substantial shareholder of the company, according to this announcement. Aberdeen has a good track record being a long term value investor, so their departure as a shareholder is worrisome.
I have written many times about SP Setia and the controversial hostile take-over by PNB. PNB should rethink its strategy if this kind of corporate manoeuvre is indeed worth its while. I doubt it, I think they can better stay as a relatively smaller share holder on the side-lines in a supportive role, while the founder/CEO is running the business, while keeping a large share in the company.
Minorities not only have to deal with the loss of the top management, but also with the huge dilution caused by a Private Placement and new ESOS scheme, the details are to be found here.
The only good news is that Liew will stay on as Chairman for the large Battersea project in London and as Managing Director of the Qinzhou Development Consortium.
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