Tuesday, March 26, 2013

Abu Sahid plans to raise stake in Scomi

By Sharen Kaur
sharen@nstp.com.my
Published in NST on March 26, 2013


KUALA LUMPUR: Tan Sri Abu Sahid Mohamed said yesterday he could increase his stake in Scomi Group Bhd as he believes that the company is undervalued.

The businessman also told Business Times that he is quitting as Avalon Minerals Ltd chairman.

Abu Sahid had bought into Avalon, a company listed on the Australian Stock Exchange, in 2008 and controls about 11 per cent of its shares.

However, he has no plans to hive off his stake in the Australian company as he is betting that the mineral exploration company will deliver in the long run.

Abu Sahid will be succeeded by Crispin Henderson, who is Threadneedle London chairman and Ameriprise Inc vice-chairman.

Ameriprise, which is the holding company of Threadneedle, manages assets worth US$127 billion (RM393.5 billion) in 16 countries.

Nevertheless, Abu Sahid seems to have an open mind on Scomi Group, saying he has no comment on the performance of Shah Hakim Zain's performance as Scomi Group's chief executive officer.

"I hope and believe that the management is good. If they do not perform, they should change the management. The bottomline is that the company must make money," said Abu Sahid.

Shah Hakim is also a key shareholder of Scomi Group.

To recap, Abu Sahid had disputed IJM Corp Bhd's emergence as a shareholder in Scomi, citing that it will dilute the stake of current shareholders.

IJM's entry into Scomi is said to have the backing of Shah Hakim. Under the deal, Scomi would issue RM110 million worth of convertible debt to IJM, which, upon conversion, would see the construction company owning 24.3 per cent of Scomi.

The convertible debt proposal went ahead after gaining shareholders' approval.

Abu Sahid, who owns 6.8 per cent stake in Scomi, however, looks to be staying for the long run.

"I have enough shares in Scomi to shake everybody," he declared in jest.

The tycoon last bought Scomi shares on March 19 when he acquired some 1.19 million shares.

"I am monitoring and observing what they are doing. I will continue to buy Scomi shares as long as I have the money. I have nothing to hide," he added.

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