Wednesday, October 12, 2011

Will ECM Libra back down?

NST 11/10: Sime Darby said it received a Securities Commission letter. SC found in its review that Sime doesn't have to make offer for E&O shares. For full story, click h e r e

In my posting on the matter last Thursday (The (still) continuing E & O saga: The Sime Darby vs ECM Libra tussle a proxy war?), I wrote, among other things, that
"the boys at ECM Libra are working hard to try and force a mandatory general offer ... Which is, by the way, a NO GO, I hear".
True enough, the SC has ruled in favor of Sime Darby. In the event of a GO, a lot of people would have made a lot of quick bucks. Because of the SC's decision, some people in ECM Libra have been denied the chance of making a cool RM150 million, give or take a few million ringgit.

Does the E & O saga end here? Certainly not, according to analysts which won't be quoted in the business pages of the mainstream media, ECM Libra is not expected to back down. If this was indeed an Umno vs DAP proxy war, they have to push on.

ECM Libra have several options. Two of them are:

1. Take a litigation suit against Sime Darby and E & O

2. Buy the "cheap" E & O shares from the market with vengeance and with a view of increasing their stakes (which currently could be around 20 per cent). Now that there won't be a GO, Kian Onn, the brains at E & O, won't want to hold 20 per cent that gives him no say in the running of E & O. So, he may consider the opportunity of outsmarting Sime Darby's Mohd Bakke and owning a bigger stake of E & O at a considerably lower price paid by Sime. 

Either way, analysts say, ECM Libra, now seen as a close ally of the DAP or at least the Penang state government, must end up with the ownership of E & O. Remember, the jewel of the crown is the massive tract of land on the island which could give Lim Guan Eng a lot of mileage in the run-up to the next general election, especially if it is in the hands of a "friendly" concern.

Big Dog has a different take on the matter in ...What about Insider Trading? 


  1. Anonymous12:37 am

    Malaysia's 'First' Lady tries too hard...

  2. Anonymous1:39 am

    I think you are officially nuts..
    Kali and ECM backing Lim Guan Eng? Those buggers have been UMNO stooges through and through. I really don't think LGE cares who owns E&O as the state govt controls land matters whoever owns the company. Thus all planning permission goes through state anyway...
    Would LGE trust Kali anyway?
    I think you have been drinking too much of the hard stuff

  3. Anonymous8:39 am

    Sorry off topic.
    All those who support PPSMI as an option in our international school please join this group.

  4. anon 1.39am,
    kali an umno stooge? how dare you :-). i don't think that's accurate at all. he was an abdullah loyalist when abdullah was pm. as for guan eng, we were all "friends" in the past when LGE was not the chief minister of penang. it is not a secret that ecm libra organised the Penang Invest week recently with/for the penang state government. from the purely business point of view, why not? azman hashim is a major shareholder of ecm ... money is blinder than love?

    as for LGE trusting kali, i have no answer to that. time will tell.

  5. Rocky,
    should have left my name - being know as Anon and a time is wierd to say the least.
    My point is why would LGE care about who owned E&O as the state always controls land matters so irrespectively they have a big say on what happens to any landbank.
    As for Kali and ECM Libra - these Investment Houses are loyal to only one thing - their pockets. Thus no politician with intelligence (and I would say LGE is brighter than some...) would dare trust them as they have a habit of switching sides in an instant.
    One can now see how Tony Fernandes has suddenly dropped Pak Lah and KJ and become all pro Tun M and Najib. Same goes with Vinny Tan and Francis Yeoh.
    Besides I think LGE would find it easier and safer to deal with E&O under Sime.
    As for the whole E&O - Sime - ECM share swop game - it really stinks to high heaven and its clear the SC is completely in on it as well.
    Its these sort of games that completely discredits our capital market and I am amazed as you are at how the SC Chairman can be still in her post....

  6. Salam sejahtera, Harap dapat dilink blog hamba disini..Terima Kasih.

  7. Anonymous12:55 pm

    Kian Onn is the brains behind E&O ? What have you been smoking ?


  8. Anonymous3:21 pm

    ECM Libra is a value investor .. got nothing to do with DAP or any political party lor. The whole issue is started by SIME which acquire 30% E&O by paying 2.30 !! GILA ! WTF Sime do that for ? Must be something DIRTY lor ... no other explanation.

    We should not drag ECM Libra into this .. but I would rather thanks them for keep exposing and publicising this DIRTY sime action.

    I'll say let support ECM Libra .. let's buy E&O shares and put in ECM Libra into E&O to expose more !

    If fail to expose .. we still can make some money out of this investment mar ...

    What say u ? Dun say anything ... just BUY lor ... so damm cheap now !


  9. Anonymous4:54 pm

    Well Sime should just make a G O and cut the DAP route. Failing which, Sime and Bakke must be held responsible in Najib fails to win back Penang.

  10. Anon 1.39

    Kali & will always be a Singaporean agent. He failed security screening when En Ghafar wanted to make him his press sec in 1986. Thats a widely known fact!

    DAP is PAP's creature in Malaysia & its purpose is to break the Malay dominance in this region.

    (Note: Buzz word here is Malay!)

    Furthermore, Kali & ECM Libra been doing a lot of work in Penang lately. LGE even trust Kali & ECM Libra more than he trust MIDA!

    So, pls do the math.

    If you're not bright enough to do the math, go surf or google for these materials.

    Plenty around!

  11. Godfader, pray tell who is brains behind ECM Libra then? :-)

  12. Anonymous8:28 am

    Kali and Bakke are buddies from Penang. Suma boleh kautim. Mamak gang rules!

  13. chichirato10:43 am

    speculation. that is all there is. is that what this website has become? speculative pro-umno bullsh*t?

    Come on brader, what have they given you to smoke?

  14. Anonymous5:29 pm

    Lim Kian Onn.

    Hmmm... long time ago I used to work for him and Roger Tan.

    Haven't seen him for years now. Not the nicest person in the world (may now a bit less hot tempered la) but certainly not your average joe.

    LKO is ECM Libra and vice versa. No question about that.

  15. Anonymous6:53 pm

    Leave deciphering corporate/political intrigues to professionals. You guys are a joke