Donald Lim: Re-evaluate Matang-Scope merger price

Azril Annuar, fz.com

The RM145 million price tag for the merger of Matang Holdings Berhad into ACE market-listed Scope Industries Bhd should be reviewed by the Valuation and Property Services Department (VPSD), MCA vice president Datuk Donald Lim said.

This is necessary as there are two different valuations for the deal with the RM145 million valuation being the lower one, Lim told a press conference here today.

“There were two valuations and one was lower by around RM20 to RM30 million. So I think it’s best that the VPSD conduct a third valuation on how much it really costs,” said Lim.

He also pointed out that the current Matang shareholders should have the option to sell out their shares instead of just being granted shares by Scope Industries.

“By giving shares there will be a four-year moratorium and the shareholders cannot sell it. We won’t know what will happen in four years. What happens if the share prices go down? Maybe from RM1 to RM0.30 in four years.

“Matang has nearly 20,000 shareholders controlling 90 per cent of the shares. The other 10 per cent is held by the MCA-owned Huaren Foundation. So for the sake of the other shareholders they should allow them to cash out if they want to.

“And for the upcoming Annual General Meeting on May 31, Huaren should not vote. Since it is owned by MCA and there is no mandate from MCA’s Central Working Committee, Huaren should abstain from voting,” said Lim who also owns 3,000 units of Matang’s shares.

Matang Holdings entered into a business merger agreement with electrical and electronics manufacturer Scope Industries sometime in November last year and transferred its entire business and undertakings including assets and liabilities to the latter.