MI accurate about Zarinah quitting?

Let’s see if this is true. The Malaysian news portal with not much credibility after their failed slander against former MAS Chairman Tan Sri Tajudin Ramli reported that Security Commission Chairman Tan Sri Zarinah Anwar will be throwing in the towel soon.

SC chief to quit amid row over E&O

By Shannon Teoh
February 04, 2012

KUALA LUMPUR, Feb 4 — Tan Sri Zarinah Anwar will step down as Securities Commission (SC) chief next month amid pressure over the market regulator’s role in Sime Darby’s acquisition of a 30 per cent stake in property group E&O last August, The Straits Times reported today.

According to the Singapore daily, Zarinah, the first woman to head the capital markets watchdog, will leave at the end of her contract, ending six years at the helm of the commission.

The Straits Times said government officials and financial executives close to the situation told the newspaper that “ Prime Minister and Finance Minister Najib Razak will decide on her replacement in the coming weeks.”

“The E&O deal has put Tan Sri Zarinah (picture) in a tight spot. The reason is that her husband, who is E&O chairman, had raised his personal stock holdings in the company just days before Sime Darby’s announcement,” it reported.

State-controlled Sime Darby purchased its 30 per cent interest from three major shareholders — E&O managing director Datuk Terry Tham, Singapore’s GK Goh Holdings and a group of investors led by businessman Tan Sri Wan Azmi Wan Hamzah — at the end of August last year in a deal that valued E&O shares at RM2.30 a piece.

The purchase price represented a 60 per cent premium over the value of the shares in the company on the open market when the deal was announced.

The RM776 million deal triggered unease over the widely perceived coddling by the agency of large state-controlled companies at the expense of minority shareholders when exercising its authority on corporate takeovers.

The SC ruled six weeks after the deal that the plantation-based conglomerate did not have to make a general offer, prompting E&O minority shareholder Michael Chow to sue the SC for failing to compel Sime Darby to make a general offer for the rest of the shares, which would cost an additional RM1.8 billion.

This came despite a SC task force finding that Sime Darby was obliged to make a general offer for E&O shares after acquiring a 30 per cent stake in the property developer.

Singapore’s The Straits Times reported last week that the task force was of the view that a general offer obligation had been triggered as a new “concert party” was created between Sime Darby and Tham, who jointly controlled more than 33 per cent in the property concern after the deal.

Malaysia’s takeover rules stipulate that any party that acquires more than a 33 per cent interest in a public listed entity must carry out a general offer for the remaining shares.

A general offer can also be triggered if a new party buys less than 33 per cent, but secures management control of the target company.

The Straits Times also reported today candidates to replace Zarinah include deputy central bank governor Datuk Muhammad Ibrahim and the SC’s managing director Datuk Ranjit Ajit Singh.

It also said that Datuk Johan Raslan, executive chairman of PricewaterhouseCoopers, has repeatedly turned down the offer to head the watchdog agency.


MI got this from the Straits Times. However, ‘market talk’ was quiet about this. Never the less, the news of this report is something that should have happened a long time ago.

PM ‘Flip-Flop’ Tun Abdullah Ahmad Badawi appointed SC Chairman Zarinah has been on so much controversy, ever since her ascensionto the top securities industry supremo in mid 2006. Unlike the two speculated personalities been said in this MI report slotted to replace her, she had not industry credence nor respect. SC failed to reprimand the rogue ‘merger’ of a medium-sized-stock-broking-house ECM Libra and then MOF inc controlled Avenue Capital Resources Bhd. Despite demanded by so many parties, she also failed  to explain on all of the ‘irregularities of the merger’, which SC failed to act even though complaints filed.

Then it was the recent dodgy Sime Darby acquisition of E & O, where her husband Dato’ Azizan Abdul Rahman is the Chairman and very mush interested party in the deal. Azizan should have been investigated for ‘Insider Trading’. There are even issues about Azizan failed to discharge his fiduciary duties.

Everything about the acquisition was thought to be ‘non halal’, even the AGM. The dodgy decision for a public general offer (GO), was often raised. The SC decision on this acquisition brought upon credibility and integrity issues.

Then again, issues about Zarinah’s dear hubby being a rogue corporate player and she being the regulatory body head which failed to act was even raised in Dewan Rakyat several times. All of these ‘irregularities’, scandals and unholy corporate deals which SC has been deemed to fail to act eroded a lot of confidence on the regulatory body.

Zarinah Anwar must go. SC integrity must be returned, to enable Prime Minister Dato’ Seri Mohd. Najib Tun Razak’s economic transformation program and agenda roll out and progress smoothly.

Published in: on February 4, 2012 at 12:00  Comments (5)