Wednesday, March 25, 2009
Oooiiii Advisors, Wake Up La For TMI
TMI was suspended yesterday, and will trade again today. Well, it seems that somebody thought it was sufficient already to announce that you will be raising RM5.25bn via an issuance of RM1.00 par value shares. Eskue me, investors also need to know the ratio and pricing. You can do a variety of combinations and come up to RM5.25bn you know. What was surprising was, didn't SC already approve the rights issue??? Is it OK to approve the rights issue as long as you know the amount you are raising, but not the ratio and pricing??? Same for going into an EGM to approve the size only??
Can you announce the EGM to approve the rights without informing about the ratio and pricing beforehand? It is not just a technicality. Hallooo advisors and lawyers... rights issue by a listed company not something new... you all probably have a checklist....
1) listen to Khazanah
2) follow Khazanah on what they want
3) Khazanah tells you how much to raise
4) make sure there is somebody to mop up amounts that are under subscribed
5) make sure SC is well informed on time line for approval
6) make sure EGM is set within time line for rights issue approval
7) make sure rights issue ratio and pricing are communicated well before EGM
Probably number (7) was on the next page and the paper was jammed in the copier!!??
Seriously, I think they were all caught up doing something else.... preparing the incredible launch of the change of name for TMI to Axiata... ta-dah... Hmmm... Axiata... isn't that part "co-axial cable" and part "data"??? ... sounds like a cable and wire company, but isnt TMI primarily mobile?? Isnt mobile and cellular the improvement and innovation from not having to use cable and wires anymore for data transfer??????????
p/s photos: Sammi Cheng