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Why David Chua exits ECM-Libra he co-founded?

David Chua has cashed out of ECM-Libra -- the company he co-founded with Lim Kian Onn and Kalimullah Masheerul Hassan -- at a timing that couldn't have been better, said S. Jayasankaran who writes for Singapore Business Times, August 12, 2006.

Chua has called it quit in the wake of the political storm surrounding the fast-growing Malaysian boutique investment bank, the Singapore business daily said. Quote:

David Chua Ming Huat exited the industry altogether when he sold his interest in the company on Thursday to an unidentified foreign party for RM32 million (S$13.74 million), bankers familiar with the matter said.

Mr Chua, who is in Hong Kong currently, could not be immediately contacted for comment but the bankers said that he was tired of the business after 21 years of chasing after deals.

Even so, other analysts familiar with Mr Chua said that he had already taken a back seat in the firm six months ago.

The analysts also said that Mr Chua had fallen out with Lim Kean Onn, ECM's driving force, over the group's strategic direction.

Chua sold 56 million ECM Libra Avenue shares at 57 sen apiece - a sharp discount to its last quoted price of 70 sen on Friday -- for RM32 million.

At the point of his disposal, Chua did not need Bank Negara's permission to sell, as ECM-Libra Avenue has yet to become an investment bank.

The Business Times quoted bankers as saying Chua would probably take up a senior position in casino group Genting Berhad.

While Khairy Jamaluddin and Chua had sold off their entire shareholding in ECM Libra Avenue on Thursday and Friday respectively, and Kalimullah had scaled down his holdings in the company and that of ECM-Libra Berhad, Lim will stay put.

Lim also represent the 'Libra' portion of the estate which he opened up for also-rides some four years ago.

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Comments

May be they should about investing in ECM-Libra. The cost estimated by Malay Mail .... Hmmmmm


THE COST SO FAR:

Dowry: RM588,888
Engagement ring from Paris: RM400,000
Wedding ring: RM250,000
Datuk Shah Reza fee as wedding planner (Nusantara Gems): RM1.5 million
Cost of horse-carriage to ferry the couple: RM500,000
The hantaran: RM2 million
Porcelain trays from Italy: RM125,000
Rental for KLCC’s exhibition halls 1 & 2 for the reception: RM4 million
Estimated cost of engaging six designers for the couple’s attire:
Embun:RM305,000
Radzuan Radzwill : RM305,000
Michael Ong : RM310,000
Khoon Hooi: RM270,000
Anna Avanti from Indonesia: RM180,000
Adjie Notonegoro from Indonesia: RM205,000
Estimated cost of engaging two make-up astistes:
Nurul Shukor: RM550,000
Mia from Indonesia: RM550,000
Food and beverage: RM800,000
Ke n d a r a t group: RM22,000
Bunga telur: RM25,000
Kompang: RM3,000
TOTAL: RM12,888,888.00

PLEDGES FOR TV RIGHTS:
TV3: RM2 million
Trans TV Indonesia: RM1.2 million
TOTAL AMOUNT: RM3.2 million

It's CRAZY !!!!

This is certainly a story within 48 hours, and something is brewing in there in wake of the PAC investigation. Certainly, the Biro Rasuah Negara (ACA) should be called in to probe the transactions in ECM Libra. [ DELETED = speculative innuendo ]

williamc,

hold your horses, lets see whats comes up of it ....sometimes it can be just becoz someone up there has gotten fed up of questions ...and says ...get out now! at whatever cost!

Btw..isnt selling at a lost, and buying at a premium, a malaysian way of life?

Both during TDM & AAB, it has happened!

I smell something fishy... its not something what KJ would normally do... he sold off his shares last week and till now he is yet to gloat.. the normal KJ i ve seen would have been splashing all over the front page of mainstream medias saying he sold it off to show that he there is nothing up his sleeves... but till now.. nothing... not even on tv... wonder why?

PAC recommended ECM-Libra to be remained a GLC.

Is this good or is this bad?

BAD, if when KH and KJ may stand to be protected by potential bail-out by the govt in case ECM-Libra (by being a GLC) screwed up like MAS & Proton.

GOOD, is when KH and KJ had no more interest in ECM-Libra, thus should be okay by remaining a GLC.

Anyway, KJ, your move in buying and selling shares in ECM-Libra in quite a short time frame and at a loss is really quite surprising.

AAB could be the most head-ache-ed father-in-law in M'sian history.

williamC: What proof do you have to back up your allegation that Khairy [DELETED as the original speculation has been deleted]

Even if he chose to sell his ECM-Libra Avenue shares at a loss at this point in time, that proves nothing. At most, you may say it provokes certain questions.

But it is Khairy's right to do with the shares as he please, when he pleases subject to whatever rules and regulations that are applicable.

I think it may be wise to phrase your opinions more carefully - as Jeff has warned repeatedly, the Internet does not operate in a legal vacuum. See the BIG RED notice just above the box you use to post your comments [at the bottom of each webpage].

Being careful will help to protect not only Khairy's rights and show that you respect his rights, but also help to protect the relative freedom we now enjoy on the Net.

My mind is too tired to do the research, but did KJ sold the same number of shares that he bought, or did he end up with more shares after the swap and hence, he's not making a loss?

Dear Leithaisor,
OK, thanks for advice. It is just my novice writing. Still a long way to learn to write / express opinion in right way. Not meant to direct at any particular person, but hope for the truth. But realise now, in politics, it is difficult for me to understand. Then, I will keep to myself only, and just blank-off my earlier posting, but as a public, I still hope PAC will do a better throrough investigation on such a sudden exit and huge transactions at below market price within 48 hours. Fundamentally, it would be stupid to sell at a discount when the market trading is above the sold price.

Over TV3, Datuk K said that he was embarrased by that report by Malay Mail. Its' " a fitnah" but no worry. Like Stevan Gan of Malaysiakini states ...the media can always as for forgiveness when the make mistakes. That easy or is it! May Datuk K should not keep quite about it and teach these media people ..printed or electronic, a lesson or 2 about honor.

JEFF OOI says: Last caution. Don't hijack this blog topic with Siti Nurhaliza's future husband. You've got the wrong K!

Datuk K aside but let's talk about apology and apology.
You report...
"What’s important, however, is our readiness to make amends. We immediately owned up to our mistake. We were willing to apologise to the police. However, it appeared they were not interested in our apology. Instead, a probe was launched."

Is it that easy? You made a mistake and then say sorry.

JEFF OOI says: Now I know you silly man. This blog -- Screenshots" -- is not part of Malaysiakini. The "Screenshots" is syndicated thorugh the frontpage of Malaysiakini, bu we are editorially independent of each other. The paragraph you quoted was waritten by Malaysiakini Editor-in-Chief Steven Gan. But this blogger is Jeff Ooi. YOU OWE ME AN APOLOGY for accusing me for the wrongtarget and for the wrong reason.

What about the damage done? Imagine the police asking for forgiveness? What would Steven Gan response be? Be honourable and man enough to face the consequences of your action and to say sorry is easy but will it be accepted is another story. The police should probe Malaysiakini to the "lubang cacing".

Testing only....

Does it mean KJ have to take out 'Investment Banker' tag from his weekly column since he no longer with ECM Libra?

Just a reminder to NST. =)

INTERNET does not operate in a legal vacuum.
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