Deputy Finance Minister told Parliament: MAS-AirAsia share swap based on share price on 5-8-2011
YB Datuk Awang Adek, the Deputy Finance Minister told Parliament during Questions Time that MAS – AirAsia share swap of 20.5% MAS share against 10% AirAsia Bhd was based on closing price of both share counters on 5-8-2011. The Deputy Minister also told Parliament that said share swap was all about “KERJASAMA”/Co-operations between the two airlines. But he could not elaborate what he meant by “Kerjasama”/co-operation. He also said the public will be told of the “Kerjasama” from time to time. Why from time to time? Why not do a tell-all now. Are there anything to hide, Mr Deputy Finance Minister?
The only “KERJASAMA” yours truly can see after the inking of the said secret share swap were as follows:
1. The cancellation of full load Firefly flights during Raya season – believed to have involved 7,000 passengers.
2. Termination of Firefly’s profitable routes from JB to Kuching and KK from 25-9-2011.
3. The whiz kid, En Mohammed Rashdan Yusof, flew to London to commit MAS to sponsor QPR home jersey for RM18 million for 2 years. (Please take note that Genting paid RM17 million sponsorship for Aston Villa home and away jersey for 2 years.)
4. The termination of MAS’ profitable routes to Bandung, Indonesia, from 3-20-2011.
Mr Deputy Minister of Finance: Were you talking about the above as the “KERJASAMA” between MAS and AirAsia? Please tell that to the marines!
Many MPs from both divides were extremely unhappy with the reply. When the Deputy Minister was pressed for clarifications he was unable to give details. He looked shaken.
The Deputy Minister’s reply was most unsatisfactory to say the least. First and foremost, the formula of the share swap must be strictly based on financial consideration and there should not be any representation in the Board of both companies. In this secret share swap, Tan Sri Tony and Datuk Kamarudin sit on MAS Boarrd and MAS has no representation in AirAsia Bhd. This must be also another form of “Kerjasama”.
The proportion of the share swap should be based on Net Tangible Assets (NTA) of both companies which can only be determined by proper due diligence exercise i.e. proper valuations of their respective net worth.
It is a known fact in Malaysia that share price can be easily manipulated due to lack of control of the security market by the authorities. Yours truly is not saying that there were manipulations here.
Prior to the suspension of trading of both counters on 8-8-2011, there was no report filed by MAS or AirAsia Bhd with Bursa Kuala Lumpur.
Surely, the negotiations between parties for the share swap must have taken some weeks, if not months. Under the Bursa KL Rules both companies had to file a report to the KLSE so that the investing public are kept informed of the development of both companies. BURSA KL, your comments please!
Please go the Bursa Kuala Lumpur website for AirAsia Bhd to look at the movement of its shares from 30-5- 2011 until 5-8-2011. You will witness the unprecedented rise of its share price and its volume. On 4-8-2011 AirAsia Bhd share rose to its majestic height of RM4.20 and on 5-8-2011 of RM4.00 and closed at RM3.90. You will also see that on opening for trading of the said share on 10-8-2011, there was a tremendous dropped of 41 Sen in a day with an unprecedented volume of 905,755 lots. Subsequent days trading also show very high volume. On 11-8-2011 399, 296 lots, 12-8-2011 532,050 lots. As of 3-10-2011 the said share closed at RM2.97, a drop of RM1.00. Read HEREto see the historical prices of AirAsia share.
The trading of MAS share has been constantly quite low except from 27-5-2011. From 27-5-2011 to 3-6-2011 the volume of MAS rose to an unprecedented height. On 27-5-2011 111,396 lots, 30-5-2011 225,353 lots, 31-5-2011 523,181 lots, 1-6-2011 163, 714 lots and 2-6-2011 114, 567 lots. Now please look at the closing price and volume of MAS share from 3-8-2011 to 5-8-2011 (before suspension of trading), there were an unprecedented increased in volume of shares traded. On 3-8-2011 closing price RM1.60 and volume of 165, 329 lots, 4-8-2011 RM1.67 127, 551 lots and 5-8-2011 (before suspension from trading) RM1.60 71,496 lots. Please read HERE for the historical prices of Mas share.
Security Commission, your comments please! Please read HERE for yours truly’s Parliamentary Questions and HERE. Hopefully the Security Commission will give Parliament the true answers to the situation.
Its food for thought. Yours truly leaves these figures for you to judge.
In any event, yours truly has tabled a letter to the Chairman of Public Account Committee (PAC) in Parliament to commence investigations into this secret share swap. The said letter was also copied to the Speaker of the House, YB Tan Sri Datuk Panglima Pandikar Amin Mulia, PM YAB Datuk Seri Najib Abdul Razak, and the Secretary of the House, Yg Bhg Datuk Roosme binti Hamzah. The said letter will be published in yours truly’s blog in due course.
Tan Sri Azman Mokhtar and his former business partner in BinaFikir Sdn Bhd, the whizz kid En Mohammed Rashdan Yusof aka Danny, the old and new Board of Directors of MAS, please get ready for PAC and Parliamentary debate. Your truly hopes that the, tanpa Fikir“ boys will start to “FIKIR“ now.
The Budget debate will definitely be very interesting.