Chua Ma Yu sets to make Good Money Again



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Jul 14 2007
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Chua Ma Yu was in the limelight again after his company CMY Capital (L) Ltd reportedly will pay RM1.168bil cash to acquire a 14.02% stake in Star Cruises Ltd from Resorts World (KLSE: RESORTS, stock-code 4715). Resorts World’s wholly owned subsidiary, Resorts World Ltd (RWL), had accepted the offer from Datuk Chua Ma Yu-owned CMY to purchase 1.01 billion shares of 10 HK cents each in Star Cruises.

Resorts World said it was reducing its 33.91% stake in Star Cruises to mitigate its exposure to the volatile earnings of the Star Cruises group. Until March 2007, Star Cruises’ unaudited results showed a net loss of US$79.39mil on revenue of US$564.88mil.

Based on Resorts World’s audited consolidated financial statement as at Dec 31, 2006, the proposed disposal is expected to result in a net gain on disposal of RM309.7mil. That is equivalent to consolidated earnings per share of 5.67 sen.

It’s interesting to see what this investor legend (well, I’ve high regard for Chua Ma Yu) will do with the newly acquired stake in Star Cruises. Chua is a well-known low-profile investor who often seen as able to acquire and dispose of his stock investment in time to make good profit. He’s more of an investor than a businessman, so I’m not sure he’ll keep Star Cruise for a very long time. He might just be the middleman and time will tell if he’ll make another round of great money when he resells Star Cruise to someone else.

If you do not know who Chua is, maybe it’s worth to mention that he’s the co-founder of Rashid Hussain Bhd (KLSE: RHB, stock-code 1309) back in 1983 only to be forced out from the company due to mostly “greed” of the other partner. I would probably remember him as the person who “pioneered” the ESOS (employee share option scheme) when he was still with RHB and in the journey made a lot of millionaires (or half-milionaire).

Chua also was the person who broke the stalemate when Nazir Razak hit the wall in acquiring Southern Bank. When Nazir Razak (brother of current Malaysia Deputy Prime Minister and CEO of Bumiputra-Commerce Holdings Berhad or BCHB) couldn’t seem to find a way to forcefully acquire Southern Bank, it was said that Nazir turned to Chua for help. Chua, via his direct 17.5 percent stake in Killinghall (which owned 16.4 percent of Southern Bank), master-minded the removal of four of Southern’s seven directors (namely Tengku Zaitun Tengku Mahadi, Ian Craig Buchanan, Nicholas Spiro Zefferys and Sieh Lee Mei Ling.) and approved the Bumiputra-Commerce bid via shareholders EGM and the rest is history.

Too bad he’s no very active in the Malaysian corporate scene since he brought most of his major business out to Hong Kong (via Waterfront Group) right before the 1997 Asia Crisis.

You can read more about Chua at the other old articles below.

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