Maybank-BII Controversy... Part II
May 28, when I was attending the first sitting of the 12th Parliament -- for the first month as an elected representative -- I blogged about the Maybank-PT Bank International Indonesia (BII) Controversy that warranted the bank's senior management to give us MPs a briefing en masse.
One of the key issues, then, was the contentious topic of why Maybank had agreed to buy over from Temasek Holdings the block of shares at RM4.9 billion, which calculated to paying 23% premium over the market price at the point of agreement signing. Was there a broker from Malaysia who benefitted as the middleman in the deal?
The second serious issue was whether Maybank, by entering into the deal after CIMB had made an earlier market entry into Indonesia's banking industry -- both CIMB and Maybank ultimately report to the same person, the Prime Minister -- had flouted local law on the ownership in Indonesian banks.
It was only after that the Government made a startling revelation that Maybank could suffer total losses of up to RM3.5 billion as regulatory requirement in Indonesia warranted it to sell down the 20% block within two years.
Worse, if the Maybank-BII deal falls apart, Maybank may lose a further RM480 million which it paid as deposit to the vendor, Temasek Holdings, which was trying to dispose off the 55% controlling stake it owned in BII.
Typical of Malaysia, what were market rumours are now boiling over into facts.
When the final nail is knocked into the coffin, it's suckers like you and I, the taxpayers, who will rise to the occasion to pay for the mistakes that these GLC's made on behalf of Khazanah Inc, and the country.
BY THE WAY... Apart from the recalcitrant IPPs who refused to agree to PPA negotiations and refused to pay Windfall Tax, toll collectors are also thumbing their nose at the Abdullah Administration.
What toll cut, Zin?
Comments
One more. When you topup thirty ringgit, the telco counts the validity period from the day you top up. They also count it to the twenty-ninth day. In other words, in thirty months time, you will have to top up one month immediately the following day even if you don't use the phone at all.
Mobile credit kills poor folks who need to hold a phone to take any emergency calls.
Posted by: Neil![[TypeKey Profile Page]](http://www.jeffooi.com/nav-commenters.gif)
|
August 6, 2008 04:28 PM
How many deals has Malaysia GLC go through with Singapore Temasek and how many times Malaysia government become the sucker?
Countless time.
------------
Neil, if you are yellow telco prepaid subscriber, top up RM100 before 31 Aug 08, you will get 365 days validity period.
Posted by: moo_t![[TypeKey Profile Page]](http://www.jeffooi.com/nav-commenters.gif)
|
August 6, 2008 04:53 PM
Dear YB Jeff,
I totally understand & feel your frustrations in this latest posting of yours.
My heart bled for this great nation & its citizens since Tunku, our
Bapa Merdeka was "betrayed" by the "Elite Nationalistic Ketetuanan
Group"- some may still be alive today, still mentoring the BN, UMNO &
UMNOputras.
Have no fear as more incriminating revelations will be forthcoming to
put the final nail on the coffin of the "BN" administration by its OWN
enemies from WITHIN their ranks.
Initially we have YB LGE as one of the many TRUE Malaysian Leaders and
many more will "Evolve" in due course, not necessarily from any party.
Have FAITH & be PATIENT to witness the coming of a New Dawn for this
great nation Malaysia for all Malaysians. Insha Allah.
Posted by: flyer168![[TypeKey Profile Page]](http://www.jeffooi.com/nav-commenters.gif)
|
August 7, 2008 06:27 AM
as the first "malaysian blogger MP", shouldn't you be at the police sstation today support Bakaq (penarikbeca)>?
jeff..where are thou?
JEFF OOI says: You are a blur sotong or you didn't read my blog, here (Aug 4) and here (Aug 6)? I am currently overseas. But my SMS to Penarik Beca on Wednesday (Aug 6) afternoon didn't get reply. How is he now? Were you at the police station or stuck to the safe (but false) haven of your computer monitor :-0
Posted by: tomatoinc![[TypeKey Profile Page]](http://www.jeffooi.com/nav-commenters.gif)
|
August 7, 2008 05:10 PM
One of the key issues, then, was the contentious topic of why Maybank had agreed to buy over from Temasek Holdings the block of shares at RM4.9 billion, which calculated to paying 23% premium over the market price at the point of agreement signing.
on this point at least I think there is a clear answer:
the premium is known as "control premium" - the reason is, you could buy blocks of the share off the market, but if you wanted to actually control the company (which Temasek does have with its majority shareholding) you have to pay more to reflect the fact that you
(i) benefit economically from subsequent earnings of the company, and
(ii) have a major say over how the company will perform in future.
In any case, if you kept buying blocks of shares off the market, the market would interpret this as demand going up (and hence price going up) and hence you cannot buy a very significant block of shares at their current market price. There must always be a premium
Posted by: ruykava![[TypeKey Profile Page]](http://www.jeffooi.com/nav-commenters.gif)
|
August 8, 2008 01:47 PM
this blur sotong is sitting in front of a computer, 3000 miles away, trying to earn a doctorate degree.
you could at least make protest on your blog...just bad look on DAP, that no one came forward to support its PAS brethrens
JEFF OOI says: I did it my way in supporting Penarik Beca. He is not a PAS membership card holder but we do have good friends in PAS, and our common friends in PAS know that -- which ic more important than posturing it on my blog.
Posted by: tomatoinc![[TypeKey Profile Page]](http://www.jeffooi.com/nav-commenters.gif)
|
August 8, 2008 03:09 PM