Change of government, change of fate

TheEdge Fri, Dec 28, 2018 10:01am - 5 years View Original


KUALA LUMPUR: May 9, 2018 is a memorable day for Malaysian voters. But May 14, is probably even more unforgettable for shareholders of e-government service companies like MyEG Services Bhd, Datasonic Group Bhd and Prestariang Bhd.

MyEG co-founder and managing director Wong Thean Soon saw some RM214.84 million of his wealth evaporated in a single day on May 14 — the first trading day after the 14th general election (GE14). MyEG’s share price hit limit-down, tumbled 29.84% or 77 sen that day.

Some over RM2.78 billion worth of market capitalisation was wiped out as investors fled from companies perceived to be linked to the Barisan Nasional administration.

MyEG shares were hammered again to below RM1 following the new government’s announcement  that the goods and services tax (GST) would be zerorised in line with its pledge to remove the GST under its election manifesto — putting MyEG’s GST monitoring project at risk.

At a closing price of 96.5 sen yesterday, Wong, whose fleet of luxury sports cars is the envy of many in town, has lost some RM515.09 million of his wealth since May 14.

Prestariang president and chief executive officer (CEO) Dr Abu Hasan Ismail is probably worse hit. He lost his entire shareholding in the company due to margin calls.

With Prestariang shares slipping 29.65% or 49 sen, Abu Hasan saw some RM64.3 million of his wealth gone on May 14.

Making matters worse for him, Abu Hasan was forced to sell his entire stake through his private vehicles EkoHati Sdn Bhd, Sigma Dedikasi Sdn Bhd and Anjakan Evolusi Sdn Bhd, ceasing to be the group’s major shareholder simply because of the margin calls from stockbroking firms.

The government’s decision to scrap the RM3.5 billion concession for the national immigration control system (SKIN) project, in which Prestariang holds a 70% stake, is the final nail in the coffin.

On Dec 14, he sold his remaining 117.19 million shares or 24.3% stake. Previously, on Oct 22 and Oct 23, Abu Hasan had also disposed of Prestariang shares amounting to a 3.13% stake, to rectify a personal margin position as well

To put things into perspective, Abu Hasan had a stake of 132.3 million shares as at Dec 31 last year, which would mean that the CEO lost RM150.82 million worth of wealth in one year.

Over at Datasonic, the share price dropped 8.37% in one day to 83.2 sen from 90.8 sen, losing only some RM100 million in market capitalisation on May 14. In conjunction, Datasonic managing director Datuk Abu Hanifah Noordin, the company’s single largest shareholder holding a 28.37% stake, lost RM29.11 million on the same day.

Its deputy managing director Chew Ben Ben, who held a 25.32% stake, or 184.68 million shares, lost RM25.98 million in the company on May 14.

Abu Hanifah (with a 28.38% stake now) and Chew (22.86% stake) have lost some RM176.37 million and RM141.34 million respectively since May 14.

Meanwhile, Scicom (MSC) Bhd managed to recoup some lost ground but it is still down 28.6% year to date.

Scicom’s share price slipped to a four-year low of 94.5 sen on Dec 14 due to the contagion effect from the cancellation of SKIN project.

It closed at RM1.22 yesterday.

Also, its CEO and founder Datuk Seri Leo Ariyanayakam, with a 25.2% stake or 89.73 million shares, saw some RM60 million of his wealth evaporated since May 14.

The content is a snapshot from Publisher. Refer to the original content for accurate info. Contact us for any changes.






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