Reverse takeover of Scope will not benefit Matang shareholders, says firm

(The Star) – Holding company Lau Chek Min Sdn Bhd, which is the second largest shareholder of Matang Holdings Bhd, is against the reverse takeover of Scope Industries Bhd by Matang.

Chairman Lau Liang Fook, whose company owned 1.1% or 1.472,500 million shares in Matang, said it was against the exercise as the shareholders would be at the losing end.

“This is because there are four main issues that need to be addressed by the Matang board of directors (BOD).

“One is that if the reverse takeover is approved, RM200mil cash should be returned to the shareholders but BOD failed to explain to us if this will take place,” he told The Star before the start of an extra-ordinary general meeting at the Grand Paragon Hotel here.

The EGM is held to decide on the reverse takeover of Scope Industries Bhd by Matang Holdings.

Lau added that another issue was that Matang was valued below market price at RM48mil while their own valuation found that the company is valued at RM200mil.

“Matang shareholders are on the losing side because they do not get their value of investment in Matang.

“We also have a problem with a term which states that Matang shareholders cannot dispose of their shares in the next four years if the takeover is approved whereas this ruling is not imposed on Scope shareholders,” he said.

He added that even though Matang would emerge as the major stakeholder after the takeover, only three Matang directors would be appointed on the new board whereas Scope, the minority shareholder, can appoint five directors.

About 500 shareholders are attending the EGM under tight security.

They were greeted upon arrival by a banner which reads “MCA please protect 19,982 minority shareholders. Our voices must be heard.”

Groups of shareholders we heard talking in loud angry tones while others did not mingle outside but walked straight into the hall to wait for the meeting to start.