PETALING JAYA: Maika Holdings Bhd incurred accumulated losses of RM106.7mil as at Dec 31, 2008 and has been in the red for the past five financial years (FYs) except for FY2005 when it had an extraordinary gain due to a writeback following the liquidation of a subsidiary. In FY08, the group made a loss after tax of RM46mil on the back of RM259mil revenue.
These details on the flagging financial state of MIC’s investment arm was revealed in the offer document for the conditional takeover offer of Maika at 80 sen per share in cash by G Team Resources & Holding Sdn Bhd. Maika’s latest results were based on management accounts as the group had ceased to publish any audited financial statements since Jan 1, 2007.
As at Dec 31, 2006, Maika’s audited net tangible asset (NTA) stood at 72.5 sen per share while it stood at 23.2 sen per share as at Dec 31, 2008 (as per the management accounts). As such, the offer price of 80 sen per share represents a premium of 245% or price-to-book ratio (PBR) of 3.45 times over Maika’s latest NTA.
G Team, incorporated on Jan 29, 2010 has a paid-up capital of RM2 and is 50% owned by Westports Malaysia Sdn Bhd executive chairman Tan Sri G. Gnanalingam while the other half is owned by Datuk S. Kunasingam, executive director of HSS Integrated Sdn Bhd.
“G Team believes that the implementation of the offer will allow shareholders to recover their adjusted cost of investment of 80 sen per Maika shares (on the basis that the shares were acquired at par and after taking into consideration the bonus shares) and assist in resolving a long-standing issue besetting the Indian community,” it said in the document, pointing out that the state of Maika’s financial affairs has been a major concern for shareholders as the company has been loss-making.
Noteworthy is that Maika’s loss per share has widened from 5.3 sen in FY06 to 35.4 sen in FY08.
The first closing date for the offer is June 22, 2010. However, G Team may extend the offer beyond the first closing date.
The offer is conditional on G Team getting acceptance of over 50% of the total voting shares of Maika.
G Team does not intend to continue with the operations of Maika and intends to sell or dispose of Maika’s 74%-owned subsidiary Oriental Capital Assurance Bhd to an interested investor. In the event it records excess proceeds from the disposal of assets and settlement of liabilities of Maika, it intends to donate the excess proceeds to approved charitable organisations in Malaysia established for the benefit of the Indian community. Upon completion of this exercise, G Team intends to liquidate Maika. Consequently, Maika employees will be dismissed.
G team is also making an arrangement with Maika’s substantial shareholder Intercontinental Nominees Sdn Bhd to acquire the latter’s 12.37% interest. For latest Bursa Malaysia indices, charts and other information click here
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