Sime Darby - E&O: What's the REAL deal?

Eastern & Oriental Berhad (E&O) was formerly just an additional the single of those stocks in the dilemma of Bursa Malaysia which unsuccessful to gain most interest between punters as well as the media.

But not anymore: in just the integrate of weeks, E&O has turned into the hottest corporate story, interjection in large partial to the impasse of firm Sime Darby. Unfortunately, the lot of the talk has the negative air to them; including murmurings of the abuse of position, insider trade as well as conflicts of interest in the deal. And that's not counting the business aspects of the understanding yet, for many analysts subject the rationale behind Sime Darby's ultimate foray into the merger as well as merger (M&A) game.

To recap, it all proposed when both E&O as well as Sime Darby announced on August 29 which the latter - which is the third greatest company in Bursa Malaysia in conditions of marketplace capitalisation - would be acquiring the thirty percent interest in the company. The vendors of the block of E&O shares have been the handling director as well as first member, Datuk Tham Ka Hon, Tan Sri Wan Azmi Hamzah who was formerly of Land as well as General celebrity as well as Singapore-listed GK Goh Holdings. The concluded cost is during RM2.30 per share as well as the understanding is to be finished this Friday.

The marketplace cost prior to ! to the p roclamation was RM1.45. See the widget below for the ultimate price.
A lot of questions have been being asked about th! e understanding the nd the personalities involved. The Another Brick in the Wallblog, which is confirmed by the blogger who wished to be identified usually as "A Voice", lifted the little of them in the post of SDarby squeeze in E&O: Strange buy as well as controversial figure:
  • *Why did Sime Darby - the some-more determined player in property development - forgoing government control when it has become the greatest shareholder... as well as having paid the premium during that?
  • *According to shareholder changes filed with Bursa Malaysia, estimable shareholder GK Goh Holdings Limited had bought 1.25 million E&O shares while the latter's chairman, Datuk Azizan Abdul Rahman acquired 100,000 shares just prior to to the proclamation of the Sime Darby acquisition. "Is which legal, or some-more precisely ethical, for the company's chairman - who is also the husband to the Securities Commission (SC), Tan Sri Zarinah Anwar - to buy prior to the major corporate announcement?"


Another critic of the understanding as well as the personalities as well as resources surrounding is the blogger "Big Dog". In his post of Smelling the rat, Big Dog said the Securities Commission "should be seeking into this probable insider trade since ECM Libra already got the balan! ce in the couple of months ago."

However, he combined that, "then again if the understanding is about the impasse of ECM Libra, it is puzzled which SC underneath Zarinah would essentially do anything. Selective prosecutio! n had al ways been the SC use underneath her. For the record, in her first month in SC she sealed the single eye as well as authorised the trashy understanding of ECM Libra taking over Avenue Capital which concerned afterwards Prime-Ministers-son-in-law Khairy Jamamuddin five as well as the half years ago."

There is the lot some-more to this than merely the normal, straight-forward business transaction where, in the pierce to expand further, the internal hulk buys into the smaller company to synergise. Since it involves the Government-Linked Company (GLC), public income is involved. And which means OUR money. Stay tuned for more.

- Mat Cendana

Courtesy of Bonology.com Politically Incorrect Buzz & Buzz

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