Gamuda Berhad’s (KLSE: GAMUDA, stock-code 5398) was as good as dead the moment it’s Managing Director Lin Yun Ling threw in the towel and cashed-out from the company he co-founded. Of course the stock would not die the same way as junk stock PECD Berhad (KLSE: PECD, stock-code 5093) but the impact was great enough to wipe out millions of market capitalization. Unlike PECD, the branding of Gamuda enables the stock to stay afloat but just like the Titanic tragedy time is running out and the rescue boats better arrive soon or else.
TheEdge reported that Gamuda’s single largest shareholder, Perak royal family via Generasi Setia (M) Sdn Bhd., who has a stake of 7.5 percent had given its consent to sell its holdings to a Persian Gulf fund. The Middle Eastern group was rumored to be potentially acquiring 23% or more in Gamuda. After the acquisition this Persian Gulf fund which is believed to be none other than Abu Dhabi-Kuwait-Malaysia Investment Corp (ADKM) might launch another round of M&A (merger and acquisition) to combine Gamuda and IJM Corp. Interestingly Utama Banking Group (KLSE: UBG, stock-code 6831) which has acquired Putrajaya Perdana Bhd and Loh & Loh Corp Bhd from ADKM has invited ADKM to become its partner in the construction and infrastructure business.
Just like how the government was rushing against time to gain Anwar’s DNA profile / sample to fabricate evidence in this second episode of sodomy, Gamuda’s shareholders are rushing against time to put up a new business roadmap. While the government has Anwar’s 10-year-old DNA profile, it can’t be used just in case an independent foreign expert was to be called to re-check the evidence. It would be an embarrassment if the world were to know a decade-old DNA was used as evidence that Anwar had left his “semen” on Saiful’s underwear *grin*. So, just like the government badly needs Anwar’s new DNA profile, Gamuda badly needs new management and direction profile in order to deliver the message that Gamuda is not dead, yet.
ADKM, a unit of Abu Dhabi Investment Authority is said to have received the clearance from Securities Commission to own 35 percent in UBG Berhad. However IJM Corp’s Managing Director who is also a Certified Public Accountant, Krishnan Tan Boon Seng, was said to be unhappy with the offer price and if Gamuda were to merge with IJM then nothing less than an attractive premium should be proposed on the table. Nevertheless with the bearish market especially in the construction sector, Gamuda might just be able to find an acceptable bargain.
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