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Wednesday 30 May 2012

Returning the money to the poor former shareholders is charity too

Senator S. Ramakrishnan,

The recent sale of Maika holding’s 79.85% stake in Oriental Capital Assurance Bhd to Tune Insurance holdings Sdn Bhd by G Team Resources has raised concern as to how will be the surplus cash distributed. Tune insurance acquired the 79.85% stake in OCS BHD for RM156.91million. It is reported that oriental capital assurance Bhd (OCS) was sold for RM1.965 per share. OCA's net tangible assets per share were at RM1.22 as of December 2009. A merchant bank and an insurance company were interested to buy the stake from Maika at RM1.59 per share that translated to 1.3 times price-to-book. But the OCS was finally sold for RM1.965 per share thus giving raise to surplus cash.

G team resources should be more transparent and explain to general public what the surplus is after the sale of OCA shares. MAIKA was set up as a vehicle to alleviate the economic achievements of Indian community. Even though MAIKA holding company was bought over and being liquidated, the Indian community is still angry and reeling over the mismanagement and abuses by MIC. Poor shareholders invested to support the attempt of MIC to set up an investment arm. Therefore as a liquidator G team resources must be transparent and sensitive to the feeling of disappointment of poor Indian shareholders and if there are any surplus that must be redistributed back to past shareholders.

The last AGM was held in June 2007. There was no AGM in 2008, 2009, 2010 and 2011. Not all shareholders sold their shares to G team resources. Some of the MAIKA shareholders refused to sell their shares. They are therefore minority shareholders now. Why no AGM was called.

It is public knowledge that MAIKA holdings affair had become an embarrassment and a political laibility to PM Datuk najib during the Hulu Selangor by election in April 2010. To absorb MIC and Samy Vellu from their wrong doings PM roped in Tan Sri Gnanalingan to buy the MAIKA shares at RM106 million and the 66000 shareholders were paid 80 cents per share. MAIKA had 74% stake in oriental Capital Assurance Bhd and some land left over from the Tumbok estate near Nilai plus a 60 million laon.

Samy Velu and his cohorts who cheated and mismanaged the holding company got away with frauds they committed. The BN government gave the criminals police protection and now the PM asking Indians to trust him. Even though Datuk Najib dissolved MAIKA holdings, Malaysian Indians will never forget the great injustice done to them by protecting the criminal and making him an ambassador for projects. It’s an insult to Malaysian Indians.

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