Liow says no to Matang-Scope deal

MCA leaders are objecting to the proposed takeover by the MCA-linked plantation firm Matang Holdings Berhad of electronics company Scope Industries Berhad on the grounds that it will be an unfair deal for Matang shareholders.

MCA deputy president Datuk Seri Liow Tiong Lai said complaints from Matang's minority shareholders on the takeover centre on the lopsided terms of the deal as well as a discrepancy in the valuation of the companies involved.

"This has raised the alarm and is a cause for concern among shareholders that it will be an inequitable deal, and leave them out in the cold," he told a press conference today.

Matang Holdings's largest shareholder is MCA-owned Huaren Holdings, which holds 10% stake, and the rest are held by some 20,000 minority shareholders.

Liow urged Matang Holdings to postpone its extraordinary general meeting (EGM) scheduled for May 31, when the deal is expected to be inked, until the concerns of the shareholders have been addressed.

Former MCA Selangor chief Datuk Seri Donald Lim said last week that the proposed takeover must be "re-evaluated" as there were two different valuations of the deal, with a difference of at least RM30 million.

He also raised concerns over the four-year "freeze" on shares, whereby Matang shareholders would not be able to sell or move their Scope shares.

However, barely a few hours after Liow's press conference, MCA president Datuk Seri Dr Chua Soi Lek issued a statement backing the deal.

"Such a deal is meant to add value to Matang shares, and does not involve the sale of the any Matang Holdings asset and it is wrong to construe this transaction as asset stripping by MCA," he said in the statement, adding he had no right to call off the EGM.

DAP's Liew Chin Tong, Tan Hong Pin and Liow Cai Tung reportedly said last week the deal deliberately puts the small shareholders at a disadvantage, claiming that Matang's key assets were deliberately undervalued. -Thesundaily