- We have been informed that
UEM Sunrise will be merged with EcoWorldUEM Sunrise will bail out EcoWorld. If this goes thru, the guys at Khazanah are committing treason! The deal will entails that the merged entity will be run by TS Liew and his band of thieves from EcoWorld. - The deal was approved by Khazanah board, chaired by Prime Minister a.k.a. ‘Abah’, two weeks ago. Apparently, the deal was devised by UMNO trustee (read here) Dato Shahril Redza the MD of Khazanah, and the criminal owner of EcoWorld Tan Sri Liew Kee Sin (more of this later). Apparently Shahril has been bankrolling Liew since his EPF days. Sayang betul kepada Liew eh? Kenapa ye?
3. Azmin Ali, who supported Tun M’s objection to the deal when it was tabled at Khazanah Board last year, changed his mind this time around (not surprising!) and vehemently pushed for the bail-out to be executed.
4. The BN Band Boy lead singer a.k.a. politician wannabe Zafrul Aziz also supported the idea. We were informed by high-placed sources that when the deal was mooted last year, the investment bank that put the deal together was CIMB, who was then led by Zafrul.
5. Abah, who proclaimed himself the defender of the Malays, as usual, also supported the deal. He has no qualms giving TS Liew billions in public money to bail out EcoWorld, while at the same time poor Malay fisherman got extra RM50 in assistance. Abah also happily giving away one of our remaining prime land in Kuala Lumpur owned by the government (Bandar Malaysia) to Tan Sri Lim Kang Hoo and his mainland Chinese partner a project that worth RM140 billion in gross development value, while at the same time aim to increase welfare assistance to Makcik Kiah et al by RM1000. So generous to the poor Malays. Alhamdullilah.
6. We don’t want to be racist, but it is such hypocrite of Abah and gang to say that Malays are losing if Bersatu stays in PH (total opposite when he was in PH), but all his actions now actually the opposite. Takpa, he will read doa, and all is well. Takbir!
7. Ok back to the topic. Why this deal is bad for the rakyat, and why should public money used to bail out private businesses?
8. Firstly, Ecoworld is in deep shit. It has debts of RM3bn vs a cash pile of about RM350m. For a construction company, this is bad given the cashflow cycle mismatch of payments & receipt. What this means is that the debt situation has made it difficult for EcoWorld to secure further bank lines. This is more so, that the company has no institutional backer. It is a company that facing a slow death.
9. Just look at its share price. It is currently trading at 0.41 cent, it has declined by 71% in the past 5 years. In fact, the total shareholders return of Ecoworld in the past 5 years of about -15% is the WORST compared to other property company. In other words, if you buy the shares 5 years ago, you will lose money a lot. UEM Sunrise did better than them.
10. It is a market knowledge that EcoWorld has been going around approaching the GLICs to ask them to become substantial shareholders, which many have declined. In fact, this deal was pushed by Shahril Redza to Khazanah (who also generously gave EPF money to TS Liew to bankroll his project at Bukit Bintang when Shahril was the CEO of EPF), but it was rejected flat by Khazanah board. At that time, the board of Khazanah was filled with honest and smart highly respected Malaysians such as TS Hassan Merican and Dr Sukdave Singh. Shahril proposal was shot down flat.
11. Ecoworld can’t secure an institutional shareholder. Institutional shareholder is key. This will be used as form of guarantee with banks to secure more funding, in the hope that there will be a bailout should they default on the loans.
12. All the GLICs own a bank substantially, Khazanah – CIMB, PNB – Maybank, EPF – RHB, so they are unlikely to see these banks fail given they are sources of great income for the funds. Should EcoWorld default, there will be tendency on the GLICs to rescue them, for the banks’ sake. This is what Ecoworld wants.
13. UEM Sunrise has been struggling with many issues, the merger of UEM & Sunrise (again the deal initiated by the Khazanah clowns for the benefit of Datuk Tong Kooi Ong – the owner of The Edge) has never really bedded down properly. Two different cultures coming together, with skills mismatch. And lets not forget what Tong said of the merger “Tong says the merged company is expected to have a market capitalisation of RM10 billion, with various segments from construction to property development to hospitality”. Well guess what is the market capitalization of UEM Sunrise now? RM 10 bil? RM 25bil?
14. Nope! It is only 17% of what was promised, current market cap is only RM1.7bil. Kena tipu lagi. Bodoh. Never learn. Why our overpaid GLCs heads zaman Pak Lah and Najib banyak dungus?
15. Now if put both UEM Sunrise & Ecoworld together as one, you have one giant property company, massively leveraged (by state banks), in an industry that will see no growth for few years.
16. We know that Ecoworld is a lousy partner. UEM Sunrise board commissioned a study, which was done by Bain & Co, and it was suggested that the best partner for UEM Sunrise was either MRCB or Sime Property. NOT ECOWORLD. It was presented to UEM Sunrise Board and Khazanah management, but it was ignored. The current UEM Sunrise Chairman Datuk Norazman Aziz who is formerly director of investment in Khazanah is not a tough guy, a pak turut who will do anything to please the political master. Same goes for almost the entire board member of UEM Bhd and UEM Sunrise. Will they dare to stand up and say no? We won’t hold our breath.
17. It is clear that this bail-out is value destroying. Hardly any synergies. One only needs to see what happened after PNB bought Setia, the latter went into massive debts and facing huge impairment. This could be Setia 2.0. Public money will go down the drain, and only TS Liew and his band of bandits will benefit.
18. Lest we forget, PNB was another idiot for buying SP Setia from TS Liew. PNB generously gave him millions of the poor Malays’ money, and what did he do with the money? He went ahead and set up rival property company EcoWorld. Bijak lah PNB! Orang Melayu kena tipu lagi. Now Ecoworld will be bailed out by another company melayu? Melayu keparat korporat di GLCs ni suka biarkan Melayu rakyat biasa terus miskin ke?
19. What worse, the investment was disastrous. PNB paid RM3.90 per share in SP Setia back in 2011. What’s the price of SP Setia now? RM 0.76 cents!!!!! The entire PNB board shoud be sacked! Did anyone at PNB got fired? The Malays should be very worried, apparently PNB would need to impair about RM3-4bn for Setia this year. That is equivalent to about 1/3 of ENTIRE dividend paid to ASB unitholders last year! Orang Melayu kena tipu lagi!
20. The Rakyat should not be fooled again and taken for a ride for bailing out tycoons. Khazanah board should resign, and Shahril Redza should be sacked for this traitorous stunt.
21. In the next posting, we shall expose documents that show that TS Liew is a criminal, and why he should be in jail. Tunggu. Small preview for you readers below.
22. We will expose entire document when the time is right. It is puzzling that Shahril ‘UMNO lackey’ of Khazanah and Tengku Zafrul ‘band boy’ who are fully aware of the above report still adamant to bail out EcoWorld. TS Wahid who is formerly the Chairman of PNB also very well aware of the report but he refused to take action. We know why. Do you?
You will be surprised! 