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
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
“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.
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
“The very long wait of more than 26 years is finally
over for these thousands of people,” said one of them.
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
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
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
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
This included the establishment of a Cabinet
Committee and Special Implementation Taskforce aimed at helping the
Indian community in the country. —Bernama