In brewing MCA revolt, Soi Lek backs Matang-Scope deal

  • American cable TV exec fired over MH370 aid drive, says report
    American cable TV exec fired over MH370 aid drive, says report

    A senior executive with an American cable broadcasting company had been fired for using her company email account to source for aid for the families of passengers aboard missing flight MH370, Associated Press (AP) reported today. The report said Fox Cable Networks Group standards and practises vice-president Darlene Tipton had wanted to... …

  • No disciplinary action against Langkawi MP by Umno, says Tengku Adnan
    No disciplinary action against Langkawi MP by Umno, says Tengku Adnan

    Umno will not be taking disciplinary action against its lawmaker, Langkawi MP Datuk Nawawi Ahmad (pic) for his insensitive remarks following  Karpal Singh’ s death as the former had apologised. The Malay party’s secretary-general Datuk Seri Tengku Adnan Tengku Mansor said however, they will "advise" the first term parliamentarian . "I have... …

  • Tears flow as Penang bids farewell to Karpal
    Tears flow as Penang bids farewell to Karpal

    Thousands bade an emotional final farewell to Karpal Singh at the crematorium, where the last rites were performed for the prominent lawyer and politician also known as the Tiger of Jelutong. A massive crowd had gathered at the Batu Gantung crematorium hours before the hearse bearing his remains was scheduled to arrive at around noon. The... …

  • BN candidate will fall on MCA, says sec-gen
    BN candidate will fall on MCA, says sec-gen

    KUALA LUMPUR, April 20 — MCA will have first dibs on fielding a candidate for the now vacant Bukit Gelugor seat in Penang, the Barisan Nasional (BN) coalition secretary-general said today. The... …

  • Enforcement, punishment needed for graft-free Malaysia, not a run
    Enforcement, punishment needed for graft-free Malaysia, not a run

    It is either the height of symbolism or just someone unclear on the concept by organising an anti-corruption run in Kuala Lumpur today The organisers, Gerakan, managed to get Prime Minister Datuk Seri Najib Razak to launch and take part in the 3km run together with 3,000 runners after a 10-minute exercise session. And that really was it.... …

  • Friendship Park in Putrajaya to symbolise China-Malaysia ties – Bernama

    The China-Malaysia Friendship Park to be developed in Putrajaya is set to become a landmark project symbolishing the strong relations between the two countries. The Lingnan-style Chinese Garden is to occupy 0.24 hectares in the permanent 11.7-hectare site of the Putrajaya Flower and Garden Festival or Floria Putrajaya, in Precinct 4. A... …

BY CLARA CHOOI
ASSISTANT NEWS EDITOR

KUALA LUMPUR, May 28 — MCA president Datuk Seri Dr Chua Soi Lek (pic) denied today that the party was undergoing any asset-stripping exercise, throwing his weight behind the proposed reverse takeover (RTO) bid by Matang Holdings Bhd in a move that could spark a major dispute with his deputy Datuk Seri Liow Tiong Lai.

Just hours after Liow and several senior party leaders slammed the deal at a press conference, Dr Chua issued a statement to insist that the planned takeover of listed electronics firm Scope Industries Bhd was meant to “add value” to the Matang Holding’ shares.

“It does not involve the sale of the any Matang Holdings asset and it is wrong to construe this transaction as asset stripping by MCA,” he said in the statement.

“The deal will also enable Matang Holdings to become a listed company and the biggest shareholder in the company,” he added.

Matang’s largest shareholder is MCA-owned Huaren Holdings with a controlling stake of 10.75 per cent, while many among its 19,984 minority shareholders are said to be Johor MCA members and their associates who had bought the shares in 1981.

Three DAP lawmakers voiced suspicion yesterday over the Matang-Scope RTO deal, suggesting the possibility of asset-stripping by the beleaguered MCA, which suffered colossal losses in the just-concluded general election.

“MCA must answer whether it is embarking on an asset-stripping exercise by exchanging hard-earned savings of ordinary MCA members and their friends to secure the financial position of its political elite and its cronies,” DAP’s Liew Chin Tong, Tan Hong Pin and Liow Cai Tung had said.

They pointed out that a large number of the 19,984 Matang shareholders are Johor MCA members and friends, who had bought the shares in 1981 which allegedly helped the state MCA raise RM50 million in “interest-free loans”.

“Many of these shareholders have held on to their Matang shares for 30 years, only to be now exposed to a deal that jeopardizes them.

“Worse still, these small shareholders face an uphill battle to stop the RTO deal since they will likely be outvoted by Matang’s largest shareholder, Huaren Holdings, which is also MCA’s investment arm,” they said.

They claimed that in the RTO deal, Matang Holding’s assets, which includes a 1,105ha oil palm estate, had been deliberately undervalued.

Obtaining it at such an undervalued rate would result in a windfall for Scope, the trio added.

The lawmakers also alleged that the deal would include offering Matang Holding’s entire RM25 million cash holdings in exchange for Scope’s shares, which they claimed are lower in value.

At a 2pm press conference today, Liow and other senior leaders, including MCA Youth chief Datuk Wee Ka Siong, voiced their objection to the impending deal and proposed that Matang Holdings cancel its extraordinary general meeting (EGM) this Friday.

Shareholders are expected to vote on the proposed RTO during the Friday EGM but with Huaren Holdings having the controlling stake.

“Failing this, MCA will be letting down its members, especially those who have held on to Matang Holdings shares for more than 30 years. This could even be another blow to the party, which has already undergone a punishing experience in the recent general election,” Liow said, with his view supported by several members of the MCA Central Committee.

But Dr Chua said that as the MCA president, he still does not have any right to call of the meeting.

He said that although MCA’s Huaran Holdings has the controlling stake in Matang Holdings, there are still 90 per cent of other shareholders who may choose to support the proposed transaction.

Singling out Parit Sulong MCA division chairman Datuk Tan Teck Poh who has spoken about the matter, Dr Chua said the latter should table his proposal to the EGM in black and white instead of issuing statements.

“I am disappointed with Tan who is obviously not familiar with the rules and regulations of the company EGM and that he should stop politicising the RTO deal between Matang Holding and Scope Industries.”

Under a reverse takeover deal, a private company skips the initial public offering (IPO) process to become a listed company by taking over companies that are already on the stock market.

This is in contrast to a typical takeover, where larger public listed companies take over control of smaller private companies by buying the latter’s shares.

Follow @YahooMalaysia on LINE for daily news updates.

Comments on Yahoo pages are subject to our link to Comments Guidelines. You are responsible for any content that you post. Yahoo is not responsible or liable in any way for comments posted by its users. Yahoo does not in any way endorse or support comments made by its users.

  • Langkawi MP unrepentant, continues insults on late Karpal, says Facebook user The Malaysian Insider
    Langkawi MP unrepentant, continues insults on late Karpal, says Facebook user

    A Barisan Nasional MP whose Facebook posting poking fun at the death of Karpal Singh shocked Malaysians has again insulted the late DAP leader, this time comparing him to a hostile figure in Islamic history who fought against Prophet Muhammad. Facebook user Shamsul Kamal Ariffin Mohd Nasir, 42, told The Malaysian Insider that Langkawi MP,... …

  • Karpal’s car crashed into lorry, not the other way around, says Perak police The Malaysian Insider
    Karpal’s car crashed into lorry, not the other way around, says Perak police

    Initial investigations have revealed that Karpal Singh’s Toyota Alphard crashed into a five-ton lorry in the accident yesterday that claimed his life and that of his assistant, Perak police said today. State police chief Datuk Acryl Sani Abdullah Sani also dismissed rumours and speculation that the accident was caused by the lorry crashing... …

  • Clarify reminder on use of ‘RIP’ by Muslims, former Perlis mufti urges fatwa council The Malaysian Insider
    Clarify reminder on use of ‘RIP’ by Muslims, former Perlis mufti urges fatwa council

    The National Fatwa Council has been urged to clarify its statement discouraging Muslims from using the phrase “Rest in Peace" (RIP) when condoling a non-Muslim's death. Commenting on the council's reminder that Muslims are not permitted to use the phrase, former Perlis mufti Associate Professor Datuk Dr Asri Zainul Abidin said the... …