theSun | FRIDAY JULY 31 2009 15

business

CIMB keen to
Bernas to buy back part of win mandate
for Maxis listing

shares owned by HK company

KOTA BARU: Padiberas Nasional Bhd (Bernas)
plans to buy back part of the 31% equity shares
held by Hongkong company, Wang Tak Co Ltd
(Wang Tak), in Bernas.
International Trade and Industry Minister
Datuk Mustapa Mohamed said Bernas had
personally relayed its intention to buy back the
shares from the foreign company as a move in
keeping with the company’s role as the national
rice supplier.
“This, however, does not mean that the
government intends to restrict the entry of
foreign investment. Infact, the government
encourages the entry of foreign investments,”
he said.
As for Bernas issue, it was a normal process
when it was listed on the stock exchange, and a
specific party had bought the shares and there
were no restrictions on it by the government
as the sale was in accordance with the laws,
he told reporters after officiating the SME Bank
Entrepreneurs Expo here yesterday.
He said this when asked to comment on
the 31% equity held by Wang Tak in Bernas,
and the concerns raised by several parties
on the major equity ownership by a foreign
company in the country’s national rice supplier
company.
Bernas in a statement on Wednesday had
clarified that its position was not in jeopardy
with the foreign equity ownership as Wang
Tak’s purchase of the shares, through the open
market, did not involve any structural change
to the control and management of Bernas.
Following Bernas listing on the Bursa
Malaysia’s Main Board in August 1997, the
management and direction of the company
came under full control of the Bernas Board
of Directors which is fairly represented by
the major and minor shareholders of the
company.
They include the Malaysian government as
the special shareholder represented through
the Finance Ministry and the Agriculture
and Agro-Based Industries Ministry.
This is stated in the terms and conditions
of the Company Memorandum and Arti-
cles as well as the privatisation agreement
signed between Bernas and the government
in 1996.
Article 3 (1) states that any merger which
can involve the transfer of power or man-
agement of the company to any individuals
or foreign firms or any foreign controlled
firm, is not allowed at all.
Mustapa, however, did not say when
Bernas will be buying back the shares.
He also called on all parties not to worry,
saying the management of Bernas will not
be affected including changes to the price
of rice.
Mustapa said the government had the
Golden Share, giving it the absolute power
to decide the direction of Bernas.
“This means any action by Bernas will
need the approval of the government before
KUALA LUMPUR: CIMB Group will try to win
the mandate to manage Maxis Communica-
tions Bhd’s listing if the telecommunication
giant decides to relist on Bursa Malaysia, group
chief executive Datuk Seri Nazir Abdul Razak
said yesterday.
“If there is such a mandate, we will certainly
try to win it and I am sure every banker will
also try to win the mandate,” he told reporters
after the presentation of prizes to the winners
of CIMB Bank’s “Dream Deposit Drive – Back
Again!” campaign.
Recently, Maxis said it would consider Prime
Minister Datuk Seri Najib Abdul Razak’s call for
its relisting on Bursa Malaysia.
“It would be a major international initial
public offering (IPO). It would be perhaps the
most important equity transaction in the Asia
Pacific region if it goes ahead. Therefore, many
bankers would chase for the deal,” Nazir said.
Maxis made its debut on Bursa Malaysia on
July 8, 2002, but five years later, Binariang GSM
Sdn Bhd, part of Tan Sri T. Ananda Krishnan’s
Usaha Tegas group, made a general offer to
take the company private.
Its market capitalisation prior to the delist-
ing stood at RM39.8 billion.
Commenting on the government’s move to
set up private pension funds, Nazir welcomed
the initiative, saying the government should
come up with a new framework where

Rights issue will not affect it is undertaken. suppport is mainly low income earners.
“It also covers the fixing of rice price in According to him, the present framework is
the market, and this will not change even causing distortion in terms of the government’s
if a foreign company owns 31% equity in participation in the capital market.

dividend payout, says Lee Bernas.

KUALA LUMPUR: IOI Corporation Bhd’s
plan to raise up to RM1.22 billion in a rights is-
sue will not affect the group’s dividend payout,
executive chairman Tan Sri Lee Shin Cheng
said yesterday.
“Not really. Well, if they (investors) are not
happy, then IOI can take it up,” he said this
when asked on investors’ concern that the
planned rights offer could affect IOI’s short-
term dividend payout.
For its financial year ended June 30, 2009,
IOI declared an interim single tier dividend
of 30% or three sen per ordinary share of 10
sen each.
Last Thursday, IOI announced its plan
for a renounceable one-for-15 rights issue of
up to 421 million shares of 10 sen each at an
issue price of RM2.90 per share.
The proposed rights issue, which is ex-
pected to be completed by the second half
of calendar year 2009, would raised about
RM1.22 billion in total proceeds.
The fund will be used for capital expendi-
ture, investments and repayment of debts.
The last time that IOI made a capital repay-
ment totalling RM1.31 billion was in August
2007. Since then it has been actively buying
back its shares.
Lee said the fund raised will be kept for
investment opportunities in the related busi-
nesses of IOI and its subsidiaries, adding that
IOI has not yet identified the opportunities.
“Without the government’s agree-
ment, the action (increasing the price of
“We have a problem where Malaysians don’t
have enough savings when they retired. The
low income earners should be given support.
rice) cannot be taken by Bernas,” he said. This is a very critical issue for our future,” he
– Bernama said. – Bernama
Earlier, Lee was at the Third Annual
Best Financial Institutions in Southeast Asia
Awards event to receive the “Best Corporate of
the Year Award” on behalf of his company.
The non-banking related award was to
recognise a company that has made signifi-
cant contribution to its own industry and built
itself a leadership position through manage-
ment excellence.
“I am very delighted to receive this award.
I am always quoted as talking to the trees,
so looks like I have to continue to talk to the
trees to get another award,” Lee said.
The IOI group was cited for its ability to
manage its plantation estates efficiently and
generate value-driven returns not only for
its shareholders but stakeholders including
its employees as well which over time have
exceeded the industry average.
Ten of the awards went to local banks,
comprising Public Bank, Maybank, CIMB and
RHB Investment Bank. – Bernama

Chinese shoe sole maker to raise

RM49m from Bursa listing
KUALA LUMPUR: Multi Sports Holdings Ltd, one
of the top five sports shoe sole specialist makers
based in Jinjiang, Fujian (China), expects to raise
RM48.96 million from its initial public offer en
route to a Bursa Malaysia listing next month.
The company is offering 100.1 million ordi-
nary shares of five US cents each at 85 sen a
piece comprising an offer for sale of 42.5 million
shares and a 57.6 million public issue.
Of the shares made available to the public,
18 million will be allocated for the Malaysian
public while the other 39.6 million for private
placement to selected investors.
“Our primary aim is to extend our annual
production capacity from approximately 24.6
million pairs to approximately 74.6 million
pairs, expand our sales and marketing network
in China, boost advertising and branding, and
enhance product development capabilities,”
said Multi Sports executive director Huang
Wei Min at the launch of the company’s listing
prospectus yesterday.
He said that about RM30 million of the
proceeds would be utilised for the capacity ex-
pansion, RM3.96 million for expanding its sales
and marketing network in China, RM3 million
for advertising and branding, RM4 million for the
enhancement of product development capabili-
ties and RM1 million as working capital.
Total listing cost amounted to RM7 million.
Multi Sports will be the second company
from China to be listed on the local bourse. For
the year ended Dec 31, 2008, it registered a net
profit of RM49.2 million on back of RM205.6
million revenue.
Jinjiang city is known as China’s fourth shoe
manufacturing capital and one of the world’s
largest sports shoe manufacturing hub, ac-
counting for approximately 20% of the world’s
total sports shoe production. – Bernama