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Maika: Maika buy-out a political gimmick, says activist

Contributed by Anonymous on Monday, April 19 @ 03:01:42 CDT

MIC
themalaysianinsider.com, KUALA KUBU BHARU, April 19 — A shareholders’ group rep claimed today that the timing of the Maika Holdings share buy-out suggested that it was a gimmick to shore up Indian support for the Hulu Selangor by-election.
 

makkal osai 200410


S. Nadarajah, an activist for Maika Holdings Shareholders Good Governance Task Force, called the buy-out announcement a “politically motivated election ploy” in his press statement, as it coincided with nomination day for the by-election. “Is this a real, genuine offer with intention to give back (to the shareholders) or is it a political gimmick because there are almost around 1,500 shareholders in Hulu Selangor?” he asked. Speaking at the PKR Information Centre, Nadarajah also said the buy-out deal lacked transparency, calling the buyers “mysterious”. He asked why there was no authoritative statement from the board or Prime Minister Datuk Seri Najib Razak despite Datuk Seri S. Samy Vellu issuing a statement thanking the latter for initiating the deal. “Is this another ploy to overcome the current problem where he (Samy Vellu) is having difficulties with the Indian community so he can get the vote?” Nadarajah, flanked by five other shareholders, said the RM106 million offer from unknown sources potentially undervalued Maika Holdings’s paid-up capital of RM125 million. “Effectively for one share which the Indian community bought... they are not given a par value of RM1.00. More or less, they’re only making 85 cents. “We welcome the move... After a long wait by the shareholders, then they are getting back the money. But we need to be paid the right price,” he stressed. Nadarajah questioned why this offer was accepted while earlier offers of RM129 million made by Selcon and RM149 million made by Ananda Krishnan in 2008 through Usaha Tegas Sdn Bhd were not. “All these offers were rejected by the board without consulting the shareholders. How come RM105 million offer is more attractive than RM150 million offer?” he asked. He added that the board was only made up of two directors, Samy Vellu’s son Vell Paari and his lawyer, Datuk Vijaya Kumar, and urged the government to appoint a judicial administrator to oversee the buy-out to ensure accountability to the shareholders. To underscore the lack of transparency in the company, the activist pointed out that its 66,000 shareholders last received an account statement from Maika Holdings in 31 December 2006, and received no statements from 2007 to 2009. “How can the shareholders exercise and form a well-informed opinion whether the price he’s offering is right?” Nadarajah later passed to the press photocopies of a police report he had made in which he alleged he was beaten by members of Samy Vellu’s retinue on 4 April 2010 when he tried to approach the MIC leader for clarification on the Maika Holdings issue.
 


********
Saturday April 17, 2010 Maika buyover looms

KUALA LUMPUR: The long wait by 66,000 shareholders of Maika Holdings Bhd is about to end as a local Indian group from the private sector has agreed to purchase all of their investments for about RM106mil, according to sources close to the matter.
The proposed purchase value of the shares was RM20mil above the total net value of Maika’s assets, which was currently worth only about RM85mil, they told Bernama yesterday.
“The very long wait of more than 26 years is finally over for these thousands of people,” said one of them.
The sources said the Government understood that the Maika share problem had been a sore point with the Indian community for many years and it had decided to resolve the prickly issue.
It had been reported that many people who invested in Maika shares in 1984 were Indian estate workers who had pawned their family jewellery and withdrawn their life savings.
But Maika Holdings, which was established in 1982 to enable Malaysian Indians to participate in the country’s economic growth, had not produced good returns, much to the disillusionment of its shareholders.
The sources said that the Government expected that all parties involved in the Maika share purchase would have the interest of the shareholders at heart and act quickly to resolve all outstanding matters.
They also said that the Maika share issue was one of the many significant issues that had been brought up to the attention of the Government by the Indian community, non-govermental organisations and leaders.
The Government, they said, was aware of the many issues and was working towards resolving them through various means.
This included the establishment of a Cabinet Committee and Special Imple­mentation Taskforce aimed at helping the Indian community in the country. —Bernama

 
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