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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