Sunday, November 11, 2012

Scomi Grp/IJM Corp

Datuk Phillip Siew Mun Chuang increased his shareholding in Scomi Group Bhd acquiring an additional six million shares on 05 Nov 2012 and nudging his shareholding up to 72.98 million shares or 5.48% of the company. His purchased is ahead of a crucial shareholder meeting – to be held soon – to vote on the issuance of convertible debt paper to IJM Corp which could potentially use that to tighten is grip on Scomi Group if it chose to convert the paper into shares. Siew is against issuing the paper to IJM corp, citing dilution to existing shareholders.
Siew is aligned to Tan Sri Abu Sahid who has 7.7% stake in Scomi Group. The duo who collectively hold 13.1% stake in Scomi Group have aired their grouses against the existing board of Scomi Group and its CEO Shah Hakim over IJM Corp’s entry.
On the other side, Shah Hakim together with his partner Datuk Kamaluddin Abdullah have about 13.06% stake in Scomi Group. But things took another turn when Shah Hakim’s long standing partner Kamaluddin wrote to Kaspadu’s board seeking a split in their shareholding in the private vehicle, which holds 13.06% stake in Scomi Group. Kamaluddin and Abu Sahid are close.
While the shares placement to IJM Corp has gone through, the issuance of debt paper to IJM Corp and the conversion of debt paper to shares require approvals from Scomi Group’s shareholders.
While Shah Hakim and IJM corp just require a simple majority to push the proposal through, the simple majority may not be so easily achieved.

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