TA Global minority shareholders confused over corporate exercise – MSWG Speaking to reporters today, Minority Shareholder Watchdog Group (MSWG) chief executive officer Devanesan Evanson said minority shareholders who attended a discussion forum today pointed out that their main concern was that the offer price of 28 sen for TA Global shareholders was lower than TA Global's estimated revised net asset value (RNAV) of RM1.10. The offer price represents a 74.5% or 82 sen discount to the RNAV. On top of this, Devanesan also said the corporate exercise is not straightforward and has caused confusion for the shareholders as this deal involved the cash and share swap options. "If shareholders opt for cash, they will get 28 sen. Otherwise, if they take share swap, indirectly [they] get to enjoy both TA Global growth through TA Enterprises as TA Enterprises will have both stockbroking and property businesses (assuming the corporate exercise is approved by TA Enterprises' shareholders at its extraordinary general meeting)," he added. Meanwhile, he pointed out that the proposal could trigger a mandatory general offer (MGO) in TA Enterprises as TA Global chairman Tony Tiah would fund the cash settlement for TA Global's shareholders who opt for cash. Nonetheless, he said MSWG has suggested that the minority shareholders of both companies take a view from any independent advisory circular when it is available later. "We think the independent advisor's report will contain more information as [it is] prepared by licensed professionals, and able to give more guidance to minority shareholders, he said. Required: Why MSWG involve in the above case? Justify the consequences if MSWG does not play its role.
TA Global minority shareholders confused over corporate exercise – MSWG Speaking to reporters today, Minority Shareholder Watchdog Group (MSWG) chief executive officer Devanesan Evanson said minority shareholders who attended a discussion forum today pointed out that their main concern was that the offer price of 28 sen for TA Global shareholders was lower than TA Global's estimated revised net asset value (RNAV) of RM1.10. The offer price represents a 74.5% or 82 sen discount to the RNAV. On top of this, Devanesan also said the corporate exercise is not straightforward and has caused confusion for the shareholders as this deal involved the cash and share swap options. "If shareholders opt for cash, they will get 28 sen. Otherwise, if they take share swap, indirectly [they] get to enjoy both TA Global growth through TA Enterprises as TA Enterprises will have both stockbroking and property businesses (assuming the corporate exercise is approved by TA Enterprises' shareholders at its extraordinary general meeting)," he added. Meanwhile, he pointed out that the proposal could trigger a mandatory general offer (MGO) in TA Enterprises as TA Global chairman Tony Tiah would fund the cash settlement for TA Global's shareholders who opt for cash. Nonetheless, he said MSWG has suggested that the minority shareholders of both companies take a view from any independent advisory circular when it is available later. "We think the independent advisor's report will contain more information as [it is] prepared by licensed professionals, and able to give more guidance to minority shareholders, he said. Required: Why MSWG involve in the above case? Justify the consequences if MSWG does not play its role.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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![TA Global minority shareholders confused over corporate exercise –
MSWG
Speaking to reporters today, Minority Shareholder Watchdog Group (MSWG) chief executive
officer Devanesan Evanson said minority shareholders who attended a discussion forum today
pointed out that their main concern was that the offer price of 28 sen for TA Global
shareholders was lower than TA Global's estimated revised net asset value (RNAV) of
RM1.10.
The offer price represents a 74.5% or 82 sen discount to the RNAV.
On top of this, Devanesan also said the corporate exercise is not straightforward and has caused
confusion for the shareholders as this deal involved the cash and share swap options.
"If shareholders opt for cash, they will get 28 sen. Otherwise, if they take share swap, indirectly
[they] get to enjoy both TA Global growth through TA Enterprises as TA Enterprises will have
both stockbroking and property businesses (assuming the corporate exercise is approved by TA
Enterprises' shareholders at its extraordinary general meeting)," he added.
Meanwhile, he pointed out that the proposal could trigger a mandatory general offer (MGO) in
TA Enterprises as TA Global chairman Tony Tiah would fund the cash settlement for TA
Global's shareholders who opt for cash.
Nonetheless, he said MSWG has suggested that the minority shareholders of both companies
take a view from any independent advisory circular when it is available later.
"We think the independent advisor's report will contain more information as [it is] prepared by
licensed professionals, and able to give more guidance to minority shareholders, he said.
Required:
Why MSWG involve in the above case? Justify the consequences if MSWG does not play its
role.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F35efc7fa-d15a-4753-9a31-d05a3d3f3fd3%2Fba3e36c6-7c9b-41f1-a80b-c758865cc3e3%2F4ohlhr7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:TA Global minority shareholders confused over corporate exercise –
MSWG
Speaking to reporters today, Minority Shareholder Watchdog Group (MSWG) chief executive
officer Devanesan Evanson said minority shareholders who attended a discussion forum today
pointed out that their main concern was that the offer price of 28 sen for TA Global
shareholders was lower than TA Global's estimated revised net asset value (RNAV) of
RM1.10.
The offer price represents a 74.5% or 82 sen discount to the RNAV.
On top of this, Devanesan also said the corporate exercise is not straightforward and has caused
confusion for the shareholders as this deal involved the cash and share swap options.
"If shareholders opt for cash, they will get 28 sen. Otherwise, if they take share swap, indirectly
[they] get to enjoy both TA Global growth through TA Enterprises as TA Enterprises will have
both stockbroking and property businesses (assuming the corporate exercise is approved by TA
Enterprises' shareholders at its extraordinary general meeting)," he added.
Meanwhile, he pointed out that the proposal could trigger a mandatory general offer (MGO) in
TA Enterprises as TA Global chairman Tony Tiah would fund the cash settlement for TA
Global's shareholders who opt for cash.
Nonetheless, he said MSWG has suggested that the minority shareholders of both companies
take a view from any independent advisory circular when it is available later.
"We think the independent advisor's report will contain more information as [it is] prepared by
licensed professionals, and able to give more guidance to minority shareholders, he said.
Required:
Why MSWG involve in the above case? Justify the consequences if MSWG does not play its
role.
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