KINIBIZ Tiger has found a simple, lucrative way to finance its operating costs as it hunts for bigger deals in the corporate financial jungle - buying good companies on the cheap to provide Tiger with cash flow.

Laugh all you want, but Tiger has found a way. First Tiger will find an under-performing company, then ah…’persuade’ their owners to sell to Tiger at a discount. Tiger is exceptionally charming with its teeth and claws, don’t you know?

Then after Tiger’s management genius turns the company into a cash cow, Tiger will start raking in the money. Rinse and repeat!

Oh, the simplicity just proves that Tiger’s brilliance knows no limits.

But credit goes where it is due, and Tiger must confess that this sure-win strategy is inspired by UMS-Neiken’s proposed sale of its wholly owned subsidiary, High Project Ltd (HPL), to its major shareholder Ip Tai Hoi Paul.

In an announcement on Oct 11, 2013, the investment holding company said that it signed a sale of share agreement (SSA) with Ip, who holds a 58.82 percent stake in the company as at April 5, 2013.

What lit the light bulb in Tiger’s magnificent head is that UMS-Neiken wants to sell its entire stake in HPL to Ip for RM4.46 million after acquiring HPL in 2004 for RM6.778 million — the company expects a loss of RM2.552 million from the sale.

Go to KiniBiz for the full article.

This article was written by Khairie Hisyam.