Thursday, June 11, 2009

Government urged to rescue Maika Hoildings

THE Government must step in and save the RM160mil asset-based company Maika Holdings.
Malaysia Nanban reported former Malaysian Associated Indian Chamber of Commerce and Industry president V.K.K. Teagarajan as saying that such a move would bring fresh hope for Maika’s 66,000 shareholders.
He proposed that the government’s takeover of Maika be conducted via a special purpose vehicle set up by Khazanah Nasional to secure the Indian community’s economic future.
Teagarajan said this could be done because the Government had reportedly set aside RM300mil to assist the community.
Teagarajan, who is also a Maika shareholder, said the company was not a “dead horse” as claimed by many people.
“Maika Holdings has assets worth more than RM160mil, which could be used to revive the community’s interests and regain the confidence of Indian voters,” he said.
He also called for Maika’s revamp and due diligence and prudent management policies to be implemented to increase its investment rate.
“With the injection of new funds from the Government, the poor Indians, who have a RM50mil stake in Maika, can be paid off while at the same time maintaining the rest as share capital,” he said.
Teagarajan said allocating 5% to 10% of government infrastructure projects to Maika would also boost the company.
He added that new Maika shares could then be distributed to the low-income group to increase their investments and the community’s equity share from 1.1% to 3%.

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