Scope's takeover bid of Matang is off, AGM told

Business & Markets 2013
Written by Chen Shaua Fui, fz.com (contributor to theedgemalaysia.com)
Tuesday, 10 December 2013 18:24
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Last Updated: 6:15pm, Dec 10, 2013
JOHOR BAHRU (Dec 10): Plantation company Matang Holdings Berhad has
aborted the proposed takeover by Scope Industries Bhd that was mooted
earlier this year, the Matang chairman told shareholders at its AGM today.
Datuk Edward Khoo said that Scope had sent a letter to Matang in August to
offer an extension of the deal for nine months and the board of directors had
acknowledged that they received the offer, with no obligations attached.
"We have not continued to discuss the previous deal with Scope. Any decision
must be approved by the shareholders," Khoo said during the 35th Matang
AGM held at Danga Bay here.
He said that any future plan for the company controlled by MCA investment arm
Huaren Holdings Sdn Bhd will be brought to the table to be deliberated by the shareholders.
Khoo explained the status of the Matang-Scope deal after being pressed by shareholders who were unhappy about the extension.
The Matang-Scope deal which involved the injection of the Matang assets and liabilities, including more than 2000 acres of oil palm
plantation in Segamat, office lots and RM25 million cash into Scope in return for RM145 million in Scope shares.
The deal was rejected unanimously at the May 31 Extraordinary general meeting (EGM) after the biggest shareholders, MCA's investment
arm Huaren Holdings Berhad with a stake of 10.75%, abstained from voting.
However, Scope unilaterally announced the extension on Aug 19.
A shareholder who spoke at the AGM expressed his wish that the company be wound up and the cash distributed, because he had been
investing in the company for many years and wanted to get his cash back.
The shareholder had criticised the way the directors of Matang had set a condition in the tender notice requiring all the asset be sold
together with a baseline price of RM170mil.
"Who has the money to buy all that land? Why didn't the company break up the land and sell it in smaller lot as there are 45 land titles for
these lands," the shareholder said.
On the value of the Matang shares, executive director of administration Jason Teoh said that there is no fixed price for it.
Shareholders had sold their shares for between RM1 and RM1.50 per share. The share price it depends on how the shareholders deal
with the buyer, Teoh said.
He added, currently there are about 19,300 shareholders according to the new record following the re-registration of the shareholders.
Meanwhile the seven directors - Edward Khoo Keok Hai, Jason Teoh,Datuk Dr Lee Hong Ti, Goh Tee Tee, Wong Heng Keng, Lau Kok
Yuan,Chang Mei Kee - who sought re-election were returned.The three new directors elected are Datuk Lau Liong Fook, Lim Kong Yong, Chong Pow Onn.
However, the chairman of the Protection of Minority Shareholders Committee Tan Teck Poh was not elected as a new director.
The AGM began at 2pm and ended at about 5pm. The AGM which was held 11 days before the MCA poll was not as heated as was
expected.
Khoo also expressed his uneasiness that the AGM was politicised.
About 200 shareholders attended the AGM today which accounted for 16% of the total shares of the company.