Anita Gabrial and Tee Lin Say of BizStar have just confirmed that Pantai Holdings is now, sadly, in Singapore hands.
So, the Prime Minister got it wrong when he declared last week on tv that "there is no Malaysian company that is controlled by a foreign company". The Star, a leading mainstream medium, has proven him wrong.
Here, extracts from their cover story, "Poser for Pantai", yesterday:
"In Parkway Holdings' financial statement on its first quarter ended March 2006, it notes that the group had acquired about 30% equity interest in Pantai Holdings.
It added, however, that "notwithstanding that the equity interest is less than 51% the directors consider Pantai as a subsidiary on the basis that inter alia, the group has board control of Pantai", adding that it has accordingly accounted for Pantai as a subsidiary with effect from sept 30,2005.
In other words, as pointed out by an accountant, although Parkway may not have control in terms of percentage (which is anything over 50%), it does have control in subtance as it clearly has board control of Pantai Holdings; it now has four members (out of seven) representing the interest of its new major shareholder.
In addition, she says that it is important to look at the rest of the shareholding.
"If someone has a big block of shares in a company but it does not amount to over 50%, and the rest of the shareholdersare are small and are not likely to not consolidate to assert control, then it is called defacto control.
Cuit Sikit has an earlier post on Parkway Holdings establishing a big foothold in Pak Lah's South Johor Corridor.
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