Published: Friday June 18, 2010 MYT 1:14:00 PM
Updated: Friday June 18, 2010 MYT 6:04:15 PM

Maika faces winding up if 50% shareholders' acceptance not secured

KUALA LUMPUR: Maika Holdings may have to be wound up if G Team Resources fails to get 50% of the shareholders to accept its offer to buy their shares by next Tuesday, a senior official said.

The official said Maika Holdings, which had incurred accumulated losses of RM106.7mil as at end December 2008, had no funds in its kitty.

"The independent advisers have also advised winding up if G Team fails to get the majority of Maika Holdings shareholders to accept its proposed conditional takeover offer of the company," the official said.

G Team, incorporated on Jan 29, 2010, has a paid up capital of RM2 and is 50% owned by Westports Malaysia Sdn Bhd's executive chairman Tan Sri G. Gnanalingam, while the other half is owned by Datuk S. Kunasingam, executive director of HSS Integrated Sdn Bhd.

The offer document for G Team to acquire all the shares in Maika for 80 sen a piece was issued on June 1. The three-week offer is conditional on G Team receiving more than 50% of the total voting shares of Maika.

The official said a condition had been imposed that G Team would have to dispose off the 74% stake in Oriental Capital Assurance to an interested investor within six months after it obtained the shareholders approval.

When contacted, Gnanalingam said his intention was to return the money to Maika Holdings' shareholders after getting their acceptance for the takeover of the company.

"I have no other intention. Anyone who wants to take over the company can come and discuss with us," he said.

He said that about 15% of the shareholders had already deposited their shares while another 23% being held by major shareholders was expected to be deposited soon.

Gnanalingam said they had taken up advertisements in the major newspapers to advice shareholders and the next of kin for deceased shareholders on how to accept the offer documents.

He said this advertisements was necessary as more than 5,000 letters sent out were returned to the Maika headquarters because the addresses could not be traced.

"They bought the shares about 28 years ago and many may have moved elsewhere or forgotten to update their new addresses," he said.

Gnanalingam said another big chunk of shareholders had lost their share certificates while some had settled abroad.

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