Malaysia Pacific Corp Bhd (MPCorp) has until Dec 31 this year to submit a regularisation plan to Bursa Malaysia, failing which its shares will be suspended and delisted.

Considering that MPCorp’s shares were last traded at nine sen — below its net asset value per share of 19 sen as at June 30 — the market seems to have written off the company, although it owns Wisma MPL, which is located in a prime area of Kuala Lumpur. While there are issues with the strata title, the building is being sold for RM189 million. This compares with MPCorp’s market capitalisation of RM25.9 million.

Recall that MPCorp fell into Practice Note 17 (PN17) category on Dec 1, 2014, which means that the management and board have not been able to turn the company around in the last five years.

Since 2011, MPCorp has not been able to make any profit except in FY2013, but that was from a revaluation surplus of investment properties, among others. In FY2019, net loss came up to RM81.07 million on revenue of RM14.63 million.

Still, MPCorp paid out RM2.46 million collectively to its vice-chairman and executive director Kong Yuk Chu and her children, CEO and executive director Charles Ch’ng Soon Sen and executive director Ch’ng Se Hua.

Note that Kong and her husband Datuk Bill Ch’ng Poh @ Ch’ng Chong Poh control 51.36% equity interest in MPCorp via Top Lander Offshore Inc.

Back-of-the-envelope calculations indicate that the Ch’ngs have been paid at least RM11.45 million by MPCorp since FY2015. Couldn’t some of the money have been used to appoint a professional manager to turn the company’s fortunes around?

Looking at the bleak situation, is there hope for MPCorp’s minorities?