KUALA LUMPUR, May 12 (Bernama) -- There is no political motive in the
takeover of Maika Holdings Bhd shares but purely a noble intention to
help 66,000 long-suffering Malaysian Indians, port tycoon Tan Sri G.
Gnanalingam said on Wednesday.
Brushing aside speculation and news reports that the move to buy back
the shares was politically-linked, the businessman said his intention
was to try end the issue because he felt that shareholders should be
given a respite after being caught in the Maika share fiasco for the
last 26 years.
"I was appointed to the Cabinet Committee and Special Implementation
Taskforce aimed at assisting the Indian community, and I found this
issue to be a big problem faced by Indians.
"So, I have come out with this plan or proposal. This problem has been
going on and on.
"The prime minister (Datuk Seri Najib Tun Razak) and the committee are
certainly disturbed with this problem. So, I branched into this. We are
not looking at the past, but the future. Out of the 66,000 shareholders,
about 60,000 are without proper resources (cash). This is the important
segment that I want to assist in," he declared at a press conference at
the CIMB Bank headquarters here on Wednesday.
Also present at the press conference, held to announce the conditional
takeover offer by G Team Resources & Holding Bhd to acquire all
shares in Maika Holdings Bhd, was CIMB Group Chief Executive Datuk Seri
Under the proposal, Gnanalingam's firm, G Team Resources, will buy out
financially-troubled Maika for RM100 million and pay back the money
invested by the 66,000 long-suffering shareholders of MIC's investment
arm. Each shareholder would stand to get 80 sen per share.
Shareholders would be given 21 days to redeem their shares. They would
get their offer letters via post and would most likely be asked to
submit the share buy-back applications to any CIMB Bank branches
"G Team does not intend to gain any financial benefits from the
exercise. Should the subsequent disposal of Maika's assets and
settlement of liabilities result in any financial gain, the monies would
be donated to an established charity for the benefit of the Malaysian
"In the case of a shortfall in the asset and liabilities realisation,
the loss would be borne by G Team. The offer shall be conditional upon G
Team receiving more than 50 per cent of the voting shares in Maika,
falling which, the offer would lapse," the Westports executive chairman
However, the well-known businessman, dubbed the 'white knight' who
would save Maika and end the woes of the 66,000 Malaysian Indians, said
from the feedback received to date, the exercise would result in at
least 70 per cent of Maika shares being bought back.
On Oriental Capital Assurance (OCA) Bhd, a 74 per cent subsidiary of
Maika, he said G Team would explore the opportunities to dispose the
stake and were open to receive any offer for it from interested parties.
"We intend to cease Maika's operations and comply with BNM's (Bank
Negara Malaysia) condition to dispose the stake in OCA within 12 months
from the completion of the subsequent general offer on OCA. CIMB would
be assisting G Team manage the sale of OCA to parties approved by BNM,"
On Maika's second biggest asset, a 32 hectare land in Sepang,
Gnanalingam said the land was en*****bered and once its title and
valuation had been verified, a committee led by him, would determine the
best way to realise the value of the land.
Gnanalingam however, declined to reveal the exact percentage of Maika
shares owned by MIC president Datuk Seri S. Samy Vellu.
It had been reported that many people who invested in Maika, the
investment arm of the MIC, in 1984 were Indian estate workers who had
pawned their family jewellery and withdrawn their life savings to
But Maika Holdings, which was established in 1982 to enable Malaysian
Indians to participate in the country's economic growth, did not produce
good returns, much to the disillusionment of its shareholders.
Asked if a court order taken out by some Maika shareholders to stop
such a sale in the past would hamper the exercise, Gnanalingam said it
would not be stumbling block but "we can't do anything about it until we
become substantial shareholders of Maika".
Meanwhile, Nazir explained that both G Team and CIMB did not have any
intention to short change the shareholders through the exercise and that
"the key thing is to look forward."
He said the whole exercise would clear one hurdle at a time and would
"cross the bridge when we come to it but we are clearly going ahead
(with the exercise).
"We will issue the share sale proposal forms and it must be submitted
at CIMB branches. We want to ensure every single shareholder receives
the forms for the share buy-back," he added.
****G Team Serves Takeover Offer Of
Maika Shares At 80 Sen Each
KUALA LUMPUR, May 12 (Bernama) -- G Team Resources
& Holdings Sdn Bhd this morning served a takeover notice to the
Maika Holdings Bhd Board of Directors, to acquire all its 125 million
voting shares, at 80 sen per share in cash.
The offer is based on the shareholders' original investment of RM100
million and 25 million bonus shares received in 1996, in the ailing
investment arm of the MIC, it said in a statement Wednesday.
G Team Resources is a special purpose vehicle formed by port tycoon Tan
Sri G. Gnanalingam and another individual Datuk S. Kunasingam, to return
long-suffering Maika shareholders their original cost of investment.
The offer do*****ent is expected to be despatched to Maika shareholders
within 21 days. The offer would remain open for at least 21 days from
the date of the offer do*****ent.
CIMB Investment Bank has been engaged as the adviser and financier to G
Team for this exercise.
Gnanalingam had recently moved to help resolve the woes of Indian
shareholders in Maika, considered the biggest problem besetting the
At a press conference here Wednesday, Gnanalingam said he was confident
of receiving more than 50 per cent of the voting shares, failing which,
the offer would lapse.
He said a general offer of Oriental Capital Assurance Bhd (OCA), a 74.16
per cent subsidiary of Maika, would also be triggered once the offer
"We do not intend to continue with the operations of Maika and will deal
with the assets and liabilities of the firm in a transparent manner,"
Maika currently has two main assets, namely its stake in OCA and a piece
of land in Sepang.
He added that the land in Sepang was en*****bered and once its title and
valuation was verified, a committee would be set up to determine the
best way to realise its value.
At the same event, CIMB Group Chief Executive, Datuk Seri Nazir Razak
said G Team would explore opportunities to dispose of the stake in OCA
and was open to receiving interest from all qualified parties.
This is in line with G Team's intention to cease Maika's operations and
to comply with Bank Negara Malaysia's condition to dispose of its stake
in OCA within 12 months from the completion of the subsequent general
offer on the insurance firm.
"G Team does not intend to gain any financial benefits from the exercise
and should the disposal of Maika's assets and settlement of liabilities
result in a surplus, it would be donated to an established charity for
the benefit of the Indian community.
"But the case of having a surplus is remote. The probability is there
for G team to be short-changed, instead of the shareholders," he
In the case of a shortfall in the asset and liabilities realisation, the
loss would be borne by G Team, he said.
Nazir also said that they were looking at a mechanism to assist
shareholders in dealing with the process of selling their shares to G
"The obvious way is to post it. But, we will also look at having
collection centres at our branches, to facilitate with the form
submission by shareholders," he said.
Samy to chair 'moonless' CWC meet
By M Kumaran
KUALA LUMPUR: With the tides turning against him, MIC president S
Samy Vellu is said to have turned to the moon for help.
According to an MIC source, this is the reason why the 74-year-old
party boss chose to hold the Central Working Committee meeting tomorrow.
Normally, the meetings are held towards the end of the month, and on
However, the source claimed that Samy Vellu's trip to India last week
with his son Vell Paari had led to a change in plans.
“Father and son carried out prayers in India, and the priests there
advised them to hold the meeting on Amavasai (no moon day),” he said.
He claimed that the prayers were done to ensure that Samy Vellu does
not face any “embarassment or arguments” during the meeting.
“The president was told that he would face no hurldes if the meeting
is held on this day, since the moon has the power to influence people,”
New deal for Maika
Several pricky issues
are expected to be raised at tomorrow's meeting such as the Maika
Holdings deal and the post-mortem results for the April 25 Hulu Selangor
Maika Holdings, MIC's debt-ridden investment arm, is to be rescued by
prominent business tycoons G Gnanalingam and S Kunasingam through a
special purporse vehicle called G Team Resources & Holdings Sdn Bhd.
This morning G Team Resources served a takeover notice to the Maika
Holdings board of directors to acquire all its 125 million voting shares
at 80 sen per share in cash.
The offer is based on the shareholders' original investment of RM100
million and 25 million bonus shares received in 1996.
G Team Resources' offer was however lesser than the one made in the
past by a company linked to another tycoon, T Ananda Krishnan.
The MIC source said Samy Vellu is expected to take credit for the new
deal during tomorrow's meeting, but he is hoping that the 80 sen offer
will not draw flak from CWC members such as KP Samy.
KP Samy is closely linked to Samy Vellu's arch nemesis, former deputy
president S Subramaniam, who was behind a court injunction which
prevented Maika from disposing its insurance firm.
“This is where the 'Ammavasai' is expected to work its magic by
keeping the critics silent,” said the source.
Maika Holdings, which has been the subject of numerous reports and
allegations, is now helmed by Vell Paari, who is the company's chief
'Samy holds the trump
Meanwhile, the source said the MIC president is also expected to
touch on the issue of “sabotage” during the Hulu Selangor by-election.
In the run-up to the contest, Hulu Selangor MIC Youth chief V Mugilan
was accused of working against party interest.
Previously, FMT also reported that Samy Vellu was mulling
disciplinary action against his deputy G Palanivel on the same grounds
as well. Ties between the two is said to have struck a sour note.
The MIC source said the president will not be initiating disciplinary
action against anyone, “but he will hold the trump card since he has
compiled all the evidence”.
Apart from these issues, Samy Vellu is also expected to talk about
the pressure from Umno with regard to a leadership transition in MIC.