MCA leaders today expressed their objections to the proposed takeover of Matang Holdings Bhd by Scope Industries Bhd.

MCA deputy president Liow Tiong Lai said he strongly insisted  that the Matang Holdings extraordinary general meeting set for May 31 be cancelled.

“Based on the MCA constitution and also a statement by the president on May 21, the disposal of party assets can only be effected with the approval of at least two-thirds of the party’s central committee.

“However, until today, the treasurer-general of MCA has neither tabled the proposal to the central committee nor obtained its approval,” he said in a statement in Kuala Lumpur today.

Matang’s largest shareholder is MCA-owned Huaren Holdings, with a controlling stake of 10.75 percent.

Liow said the board of directors had also failed to explain the proposed takeover deal to the minority shareholders of Matang Holdings.

“We have, for instance, discovered a significant discrepancy between the two valuation reports on the property value of Matang Holdings.

“This, in itself, has raised the alarm and created concerns among the shareholders that it will be an inequitable deal that will leave them out in the cold,” he said.

Matang Holdings is a debt-free company and to date has RM25 million in liquid assets.

Liow said Huaren should look out for the best interests of the minority shareholders.

“Failing this, MCA will be letting down its members, especially those who have held on to Matang Holdings shares for more than 30 years.

“This could even be another blow to the party, which has already undergone a punishing experience in the recent general election,” he said.

Chua: Deal will result in reverse takeover

In another development, MCA president Dr Chua Soi Lek stressed that the share exchange between Matang Holdings Bhd and Scope Industries Bhd will result in a reverse takeover (RTO) of Scope by Matang Holdings, and the deal is meant to add value to Matang Holdings shares.

“It does not involve the sale of any Matang Holdings’ asset and it is wrong to construe this transaction as asset stripping by MCA.

“Hence, it was not tabled in the MCA central committee meeting for deliberation nor needed the two-thirds approval of the central committee,” he said in a statement in Kuala Lumpur today.

Matang’s largest shareholder is MCA-owned Huaren Holdings with a controlling stake of 10.75 percent.

He said the deal would also enable Matang Holdings to become a listed company and the biggest shareholder in the company.

“As the MCA president, I have no right to call off or stop the Matang Holdings’ extraordinary general meeting (EGM).

“I would like to emphasise that although MCA through Huaren Holdings, has about 10 percent controlling stake in Matang Holdings, there are still 90 percent of other shareholders who may support this proposed transaction,” he said.

However, he said if Parit Sulong MCA division chairpersobn Tan Teck Poh had a better proposal on the RTO of Scope by Matang Holdings, he should table his  proposal in black and white to all shareholders for consideration during the EGM which will be held on May 31.

He said Tan should not make any statement without producing any written proposal.

“I am disappointed with Tan who is obviously not familiar with the rules and regulations of the company EGM and that he should stop politicising the RTO deal between Matang Holdings and Scope Industries,” he said.

The RTO deal between Matang and Scope had been discussed in the Johor MCA state liaison committee meeting on May 19.

Matang trustee Tay Puay Chuan had also explained the issue in detail that the proposed deal was conducted after consulting the investment bank and lawyers and was done in accordance with the law and have obtained approval from various authorities.

Dr Chua said Tan had allegedly claimed that there was a proposal to acquire Matang estate at the price of RM80,000 per acre and he should table the proposal to the Matang EGM for deliberation.

- Bernama