Monday, 5 September 2011

Sime-E&O: CIMB second "collaboration", ECM Libra insider trading?

From Another Brick in the Wall


In yesterday's posting here on the strange collaboration between Sime Darby and E&O, we observed a possible insider trading by the Chairman of E&O, Dato Azizan Abdul Rahman aka "Mrs Zarinah" or husband to SC Chairperson, Tan Sri Zarinah Anwar.

It seemed now that Azizan did not just buy for himself but tipped his long time business partner and collaborator, Dato Kalimullah to buy into E&O. Whether Kalimullah went in also is not certain, but ECM Libra went in big time. Bigdog has the story here.

He revealed also that CIMB is the broker for the collaboration between Sime Darby-E&O. First to do "collaboration" is MAS_Air Asia and CIMB CEO Dato Nazir Abdul Razak was the man to put the deal together. Now the second "collaboration" involving Sime Darby and E&O has CIMB involvement.

It was Nazir's mega merger of Sime Darby-Golden Hope-Guthrie that saw the synergy driven value creation merger turned into a bo-bo. Thanks partly to Tun Dol's appointment of a political animal in the form of wolf at the Chairmanship.

We know Nazir is the Prime Minister's brother but one have to be cruel to be kind. Supporting the Prime Minister does not mean continually covering up but also to tell him loud and clear that his brother is a liability to him and the party. If Nazir does not bother of his brother's predicament, why should we bother about him?

Insider Trading

Azizan is the Chairman and member of the Board of Director. We have exposed or morer accurately compiled his close business link with Kalimullah. And, Kalimullah is not someone favoured by PM Najib and have interest in ECM Libra.

This story was in the Edge dated 11 May 2011, below:

ECM Libra surfaces in E&O

Written by Jose Barrock

Wednesday, 11 May 2011 12:18

KUALA LUMPUR: ECM Libra Financial Group Bhd has emerged as a substantial shareholder in property developer Eastern & OrientalBhd (E&O) after accumulating 42 million shares or a 5.12% equity interest in the company at end-April.

In a filing with Bursa Malaysia yesterday, ECM Libra said it had nudged its shareholding in E&O to 5.35% or 41.41 million shares after mopping up an additional 3.4 million shares on May 9.

What ECM Libra plans to do with its block in E&O is not known.

In an announcement to Bursa Malaysia, ECM Libra merely said the “shares were purchased from the open market in the normal course of business”.

Datuk Terry Tham is the single largest shareholder with a 6.66% stake. Other substantial shareholders are Ample Echo Ltd (6.31%) and Halfmoon Bay Capital Ltd (5.36%).

ECM Libra surfacing as a substantial shareholder possibly explains the heightened trading volume in E&O shares from mid-April, which in turn, nudged E&O’s stock to its 52-week high of RM1.54 on May 3. Since mid-April, E&O’s stock has gained more than 20%. It closed down one sen to RM1.44 yesterday.

E&O has generated considerable interest lately. In the middle of last month, the Penang-based property developer said it had received approval in principle from the Penang government for phase two of its proposed mixed integrated development on land to be reclaimed in Tanjong Tokong.

In 1992, Tanjung Pinang Development Sdn Bhd, a unit of E&O, was granted the exclusive right to reclaim and develop about 980 acres of land in the north-east coast of Penang.

To date, E&O has reclaimed 240 acres and is developing phase one of the project called Seri Tanjung Pinang, and has been seeking the state government’s approval to reclaim the balance concession area of 740 acres.

ECM Libra ended trading at 90.5 sen, inching up 0.5 sen.
That transaction is about four month from the announcement of the deal. With Azizan's link to Kalimullah, it suspiciously look like Azizan may have tipped off Kalimullah of this impending collaboration.

Off course, SC Chairman will not do anything. She is there because of Tan Sri Nor Mohamad Yakcop and he has past business association with Azizan and Kalimullah.

Nazir again

Bigdog also revealed that CIMB is the adviser. Read the following snippet:

One interesting point is that the deal was brokered by non other than CIMB. It is the same financial institution which serve as an ‘adviser’ to a highly controversial corporate deal a month ago, where Khazanah Holdings Bhd. traded of 20.5% of Malaysia Airlines’ shares for 10% of Air Asia and had to further pay for 10% Air Asia X’s shares for an ‘undetermined price’. This explains for the ‘collaboration agreement’.
One wonders why is CIMB allowed to enter the Chairman and CEO office of Sime Darby after Nazir's much talked the "fee justify the deal" mega-merger that consequently resulted in a major dimunition in shareholders' value of for shareholders of the former Sime Darby, Golden Hope and Guthrie.

In fact, Nazir lied. 

The much talked idea of synergy and economy-of-superscale between the three giants did not materialed but end up into a bigger Sime Darby-style conglomorate. The conflomorate is now directionless under the Chairmanship of a political animal like Tun Musa Hitam.

Taking a shot at Nazir may invite criticism from certain party loyalist and this blogger may even be painted as being critical of Najib. We are associated with Rocky, remember?

However, we have a repution to hold on to. And, one has to be cruel to be kind.

We expect Najib - that claim the Government does not know everything but must learn to listen more - to be a better listener. He has failed us to take heed of our past warnings before and is now paying the price for the party's present predicament.

Nazir maybe his brother and blood is thicker than water. Unfortunately, his dealings as Investment Banker in the trimerger, MAS-Airasia collaboration and Sime Darby-E&O collaboration is showing him as that mean heartless I Banker.

He has become a political liability to the Prime Minister and it does not help that he uttered nasty comments on NEP at the last MCA Economic Conference .

Somebody has to tell the PM outrightly.

Don't expect someone working under and on PMO's payroll to do it. Neither could you expect some politician hard-up to run in the next General Election to tell him. Nor some veteran politicians turned businessmen or corporate board members.

Other than Rosmah, who is now like a magnet attracting negative comments from opposition and public, Nazir will eventually be so. So does Zarinah and Azizan.

Thus don't wait at the 11th hour to decide. It is usually too late.

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