Easy access: The depressed share prices of public-listed companies due to Covid-19 have technically helped make it easier to carry out M&As.
RECENT privatisation attempts which have failed to be completed have raised the issue of whether Malaysia’s takeover code is in need of a revamp.
It is understood that some company owners and advisers have been grumbling about the strictness of the current rules. Their argument is that the rules ought to be relooked at considering that the current climate needs more merger and acquisition (M&A) activities to build stronger companies to emerge from the Covid-19 doldrums.
Amendments to public spread positive for the market theedgemarkets.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from theedgemarkets.com Daily Mail and Mail on Sunday newspapers.
PETALING JAYA: The pace of mergers and acquisitions (M&As) in Malaysia, which has been affected by the Covid-19 pandemic, is expected to gain momentum going into the second half of the year.
According to experts from professional services firms, the positive momentum is expected to be supported by low interest rates, accommodating capital markets and ample private capital environment.
Although the number of M&A deals in the country may not be as high as in 2019, it is expected to pick up steam this year.
Experts also opined that the M&A landscape could return to the pre-Covid 19 pandemic levels in 2022.
IN 2019, Lembaga Tabung Angkatan Tentera (LTAT) set a goal to reduce its heavy dependence on dividend income from the listed Boustead group of companies as part of its plan to rebalance its investment portfolio. Two years on, it seems no closer to realising that goal after it aborted its plan to take Boustead Holdings Bhd private last week.
The proposed privatisation was mooted by LTAT last May in what was seen as an important step for the armed forces pension fund to support the potential restructuring of the loss-making diversified conglomerate’s businesses away from the scrutiny of public shareholders and regulators. The proposal is now entirely off the table and attention has now shifted to Boustead to turn itself around.
Minority Shareholders Watch Group (MSWG) chief executive officer Devanesan Evanson said virtual AGMs are susceptible to abuse, as virtual questions can be ignored to the exasperation of the shareholder
PETALING JAYA: With virtual AGMs becoming the new normal in the face of a global pandemic, there have been calls by experts and observers to enhance such meetings in the interest of corporate governance.
Minority Shareholders Watch Group (MSWG) chief executive officer Devanesan Evanson said virtual AGMs are susceptible to abuse, as virtual questions can be ignored to the exasperation of the shareholder.
“This has happened to MSWG analysts who have attended virtual AGMs and their virtual questions were ignored. The questions are not even read out by the chairman.