By Sharen Kaur
sharen@nstp.com.my
Published in NST on September 22 2011
Kuala Lumpur: ECM Libra Financial Group Bhd is tight-lipped on why it wants board representation in Eastern & Oriental Bhd (E&O).
On Wednesday, E&O told the stock exchange that ECM had nominated Mahadzir Azizan and Leong Kam Weng to sit on the board of the property developer.
A spokesperson from ECM told Business Times that the management declined to comment on the matter.
On September 30, E&O will be holding its yearly shareholders meeting and at the meeting, four directors are standing for re-election to the board.
The four are Datuk Azizan Abd Rahman, Datuk Tham Ka Hon, Vijeyaratnam V. Thamotharam Pillay and Datuk Henry Chin Poy Wu.
Assuming the ECM nominees are appointed to the board, it will have two representives in the nine-man board.
Speculation in the market place is that the appointments to the board are the first of many moves designed to force Sime Darby's hand in E&O.
Sime Darby emerged as a substantial shareholder in E&O last month after it acquired 30 per cent stake at RM2.30 a share from Tham (12.2 per cent), Tan Sri Wan Azmi Wan Hamzah (9.1 per cent) and G.K. Goh Holdings Ltd (9.5 per cent).
ECM has been buying shares of the Penang property developer recently.
"ECM has been buying shares at low prices in the market. If the MGO (mandatory general offer) happens at RM2.30, ECM will make a handsome profit. But, the question is whether ECM will agree on the price," the analyst said.
Analysts said that E&O minority shareholders are not happy with the Sime Darby deal, which did not trigger an MGO.
-ENDS-
sharen@nstp.com.my
Published in NST on September 22 2011
Kuala Lumpur: ECM Libra Financial Group Bhd is tight-lipped on why it wants board representation in Eastern & Oriental Bhd (E&O).
On Wednesday, E&O told the stock exchange that ECM had nominated Mahadzir Azizan and Leong Kam Weng to sit on the board of the property developer.
A spokesperson from ECM told Business Times that the management declined to comment on the matter.
On September 30, E&O will be holding its yearly shareholders meeting and at the meeting, four directors are standing for re-election to the board.
The four are Datuk Azizan Abd Rahman, Datuk Tham Ka Hon, Vijeyaratnam V. Thamotharam Pillay and Datuk Henry Chin Poy Wu.
Assuming the ECM nominees are appointed to the board, it will have two representives in the nine-man board.
Speculation in the market place is that the appointments to the board are the first of many moves designed to force Sime Darby's hand in E&O.
Sime Darby emerged as a substantial shareholder in E&O last month after it acquired 30 per cent stake at RM2.30 a share from Tham (12.2 per cent), Tan Sri Wan Azmi Wan Hamzah (9.1 per cent) and G.K. Goh Holdings Ltd (9.5 per cent).
ECM has been buying shares of the Penang property developer recently.
"ECM has been buying shares at low prices in the market. If the MGO (mandatory general offer) happens at RM2.30, ECM will make a handsome profit. But, the question is whether ECM will agree on the price," the analyst said.
Analysts said that E&O minority shareholders are not happy with the Sime Darby deal, which did not trigger an MGO.
-ENDS-
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