Good news to minority investors!
Several changes have been made by Securities Commission to the Malaysian Takeovers and Mergers Code, which now requires copanies to adopt a higher level of disclosure and makes independent directors more than just rubber stamps. The SC’s announcement on changes to the Malaysian Takeovers and Mergers Code should enhance transparency and the protection of minority shareholders, indirectly benefits us.
Several changes have been made by Securities Commission to the Malaysian Takeovers and Mergers Code, which now requires copanies to adopt a higher level of disclosure and makes independent directors more than just rubber stamps. The SC’s announcement on changes to the Malaysian Takeovers and Mergers Code should enhance transparency and the protection of minority shareholders, indirectly benefits us.
With requirements that potential offerors or offerees of a takeover be prohibited from any such activities for 6 months if a denial is made and also for SC to be notified of any material changes in takeovers after documents are dispatched, we should able to reduce the news/rumour trades mentality in the local market, which can only serve to increase its credibility in the long run.
Another good news is that, the controversy surrounding the takeover or privatisation of companies via the A&L route lies in the fact that it requires only the approval of 50% of shareholders plus one share. The new takeover method for now requires at least 75% of the shareholder of a target company approval, effective from 15th Dec, 2010.
Between, I'm surprised that SOZO is opening at slightly below IPO price and closed at IPO price. What a good opportunity for those investors who did not manage to obtain SOZO IPO earlier. As we understand, the downside for this counter may limited. Will it be repeating CNOUHUA path that it will soars right after a couple of trading days? Let's see.
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