JOHOR BARU (May 31): Shareholders present at the EGM of Matang Holdings Bhd this morning unanimously voted against a controversial deal to inject the company’s cash and assets into loss-making listed SCOPE INDUSTRIES BHD [].
All present at the meeting – mostly MCA leaders and members – rejected the Matang-Scope deal by show of hands after intense debate on this resolution tabled for deliberation and adoption today.
The company’s chairman, Datuk Tan Chai Ho, who previously stated he was for the motion, unexpectedly abstained from voting today.
He declared to reporters the deal between Matang and Scope is now off. “Since shareholders do not agree to the merger of Matang and Scope in this EGM, the proposed merger – I think – is no more already.”
The EGM went ahead in a hotel in Johor Baru despite calls by top leaders of MCA to postpone the meeting, after many MCA heavyweight leaders voiced concerns over the raw deal Matang would get in this so-called “revese takeover”.
Tan told reporters after the two-hour long meeting that it was his personal decision to abstain from voting.
A shareholder told fz.com: “There were a lot of arguments inside the FGM. While debates took about one hour, voting finished within two minutes. All show hands to oppose it.”
The outcome of the EGM today put an end to speculation that there might be another long-running, acrimonious political battle within the MCA brought about by this issue.
While MCA president Datuk Seri Chua Soi Lek is keen to inject Matang into the ACE Market-listed firm which has weak financials, his deputy Datuk Seri Liow Tiong Lai and seven other MCA central committee members are against the proposed takeover of Matang by Scope.
Chinese media reports have warned that Chua’s political opponents may use this new issue to mount pressure on him to step down, after failing to unseat him following a humiliating defeat by the MCA in the recent general election.
So far, Chua has managed to stay at the helm despite open demands from many quarters — including past leaders of MCA — for him to take responsibility for MCA’s election loss and quit the top post.
Written by Chen Shaua Fui of fz.com (contributor to theedgemalaysia.com)
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