Squeezed by Tycoon – You should Squeeze IRD back





Jun 28 2007
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The longer I looked at the checks of Maxis Communications Berhad (KLSE: MAXIS, stock-code 5051) which I’ve received, the more I hate the way minority shareholders are being treated. Before Ananda was where he’s today, he sweet-talked the public into subscribing to his Maxis’s share (it wasn’t cheap then, mind you) so that he can use the shareholders’ fund to expand the business. And when he was in the comfort level making tons of money through his stake appreciation, he launched the privatization.

Secretly behind the curtain, he already secured Saudi Telekom (SAU:
7010) as the new buyer into 25% of Maxis for a whopping $3.04 Billion valueing each share at $16.40 while he forced the minority shareholders to sell the share at a pathetic $15.60 (exclude dividends) to himself. With a stroke of a bully-stick, he made more than 5 percent, instantly.

I’ve held to Maxis shares to the last minute and when other minority shareholders chicken out and decided to submit to Ananda’s command, the shares acquisition reached above 90 percent threshold. This prompted Maxis to be delisted on Monday, 25th June 2007. Hence I’ve no choice but to sell mine as well before the delisting. Due to the time constraints and the fact that the shares were being snapped up $15.40 in the open market, I decided to dispose mine at the same venue instead of the tedious way of filling up the form before submit it to the registrar.
Based on the dividend received, what can you do to earn some money out of it? Most of the shareholders who do not have huge portfolio normally do not care about dividends declared and received. But do you know that all dividends are being taxed to the maximum before leaving the left-over to you? They’re being taxed at mind-boggling 27 percent. So if your annual income falls below this bracket, you should declare it in your annual income-tax declaration. For example if your annual income is taxable only at 20 percent max, the Inland Revenue Department (IRD) should refund the 7 percent difference to you.

Can you imagine the extra amount of money you can gain back if your income is not taxable, not that I wish you belong to such a low income bracket, mind you?

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Comments

The IRB is definitely a squeezer, but why the bitter grapes against a smart man like Ananda?

He already made you and everyone TONS of money. Would you have rather bought a stock of a crappy ass company??

hello gr,

the way you praise ananda seems to point to how the minority shareholders are thinking today (in this country) – happy with short-term windfall without looking at the long-term …

the fact remains that shareholders money were being used to help him build the empire and when the prospect of making more fortune is on the wall, he took it private and denied the same shareholders who’ve been giving him the funds to start the business at the first place …

it’s like your partner (wife/hubby or girlfriend/boyfriend) told you to put in your money into his/her business … and after 5 years, the company got very successful and your partner ask you to fly kite and force you to leave the company by paying you an extra 20% when the company could have unlimited prospect … do you see the picture here?

it’s not how much ananda made me money (maybe you had bad experience with other ass-hole listed companies) but the way we were asked to take another bus halfway the journey …

maybe maxis is a relatively good company as far as investors are concerned in this country (compare to others) … so when ananda gave a slightly bigger carrot, everyone seems to be complacent and happy …

cheers …

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