Dear i3lurker,
Do not know why I am facing this problem of unable to post my comment hence I post the reply in my blog.
Posted by i3lurker > Jul 23, 2019 11:06 AM
sslee
19.2% means a lot to savvy investors. It means mgmt backs are against the wall coz 20% is minimum for equity accounting. They had cash crises so no choice sell until had to have meeting with auditors for special forgiveness and special dispensation.
It could also mean they cannot sell anymore in future. Maybe. No one knows.
Insas is a founding shareholder of Inari 11 years ago and its original 51% equity interest in Inari has been diluted over the years primarily due to its IPO in 2011, the subsequent capital raising exercises carried out by Inari to raise funds to expand and grow its businesses and part disposal of the Inari shares by Insas. Insas as an investment holding company had on a prudent basis disposed of some of the Inari shares to realise capital profit. Notwithstanding the disposal of some of the Inari shares, the value of the Group’s remaining shareholding in Inari is still significant.
Inari Berhad effective equity holding: 19.1% (2018), 20.2% (2017), 22.8% (2016), 27.2% (2015) 33.1% (2014), 33.9% (2013), 33% (2012), 44.1% (2011)
Mr. Koon Yew Yin was here and demand CEO to sell Inari and CEO sold Inari from holding 33.1% (2014) to 27.2% (2015)
http://koonyewyin.com/2014/09/21/insas-bhd-should-follow-naims-footsteps/
Posted on September 21, 2014
Insas should sell say 6.4%, still holding 30%, to realise more than Rm 100 million profit in cash. Even its CEO Dato Thong Kok Khee sold 500,000 shares in the open market on 2nd Sept 2014. It would be foolish not to lock in some profit. If it did, Insas share price would have also shot up like Inari. That is why it is so depressed!
Imagine if that block of Inari was not sold in 2014-2015. How much it worth now?
With effect from 1 January 2016, the Group commenced equity accounting for its interest in Ho Hup although the Group holds less than 20% of the voting shares in Ho Hup, in compliance with the provisions contained in MFRS 128 Investment in Associates and Joint Ventures, by virtue of the Group’s ability to exercise significant influence and participate in the financial and operating policies in Ho Hup.
The Group has continued equity accounting for the Group’s investment in Inari although it holds less than 20% of the voting shares in Inari, as the Group undertakes to hold its equity interest in Inari for long term and is able to participate in the financial and operating policies in Inari by virtue of having board representation in Inari.
I did propose to the Board share dividend of 1 Inari share for every 2 Insas share held during last AGM. The board explained to me important of Inari to Insas as Inari is still in the growing phase to capture more market (5G roll out) and development of plant 34 Batu Kawan for different products and customers. Hence it is not in company and shareholder interest to do so. I agreed with the Board.
Thank you
P/S: Dear Stockraider, can you please not posting your repeated comments everywhere to drown other people opinion. I am learning from other people opinion in how to move forward and get the best deal from the Board for myself and others minority shareholders.
https://klse.i3investor.com/blogs/Sslee_blog/216384.jsp
