pic courtesy of AnotherBrickInTheWall.
Breaking up Sime Darby
A Question of Business
By P. GUNASEGARAM
IT was due to the advantages of size and economies of scale that Sime Darby and other companies in the Permodalan Nasional Bhd (PNB) stable notably Guthrie and Golden Hope decided to merge some three years ago to form what would be for some time the largest company by value on the local bourse.
It was knocked off that top perch as the market downgraded the share following massive losses at its energy and utility division which gobbled up all the great profits made at its other five divisions – plantations, property, motor, industrial and healthcare.
Yesterday, there seemed to be some support for the share price when its new CEO Datuk Mohd Bakke Salleh announced that the six divisions would soon be put under six different companies with their own boards and corporate structure.
The billion-ringgit question is whether this is a prelude to the effective de-merger of the entity barely three years after they came together and whether Sime Darby should undertake it. - MORE
That the failed-administration of Abdullah Ahmad Badawi had basically screwed up Sime Darby, Golden Hope and Guthrie is not news nor a secret any longer.
The recent shameful developments and close to a BILLION RINGGIT losses suffered by the merged Sime Darby is indeed a black spot in Malaysia's corporate history.
The merger of the three conglomerates was indeed a bad idea from day one but since someone close to the then administration was out to make a quick buck, everything else was swept under the carpet or forcibly silenced.
You can't keep shit under wrap for long and as expected by many a critic, it finally hit the fan slightly over three years after the three iconic organisations were caged.
When the failed-administration of Abdullah Ahmad Badawi 'caged' the three biz entities, there was actually not much consideration for their future ... it was all about the Abdullah-friendly brokers making a quick buck.
Abdullah didn't stop at the blunder of nodding to the much objected merger but went a step further and ruined the merged entity by appointing none other than his 1987 Team B buddy Musa Hitam to the coveted Chairman's position.
It's now an open secret too as to how Musa had allegedly abused Sime Darby for his own personal gains and out of sheer frustrations of not being able to occupy the Prime Minister's seat.
Sime Darby, under the new leadership of Mohd Bakee, is once again abuzz with Musa's abuse of power and authority as Chairman.
The internal and external audit findings of the chairman's penchant for flying in private jets and getting Sime Darby to pay for the private jet usage of some of his foreign friends has now hit the fan, like the same old shit.
Read the previous reports on the foxy-guy Chairman HERE, HERE, HERE....
p/s Would the powers that be maintain Musa Hitam as the Chairman of Sime Darby and risk eroding every Tom, Dick and Harry's confidence in the now humiliated conglomerate?
Dear Mr.Prime Minister / Finance Minister, please LISTEN - It requires wisdom to understand wisdom: the music is nothing if the audience is deaf.
pic courtesy of AnotherBrickInTheWall.
1 comment:
Dear Author,
From reports "here and there" Sime Darby's cost overrun projects was detected many years before the "mega-merger" took place. As I see it, Sime Darby might has to find oxygen to breath when the matter burst.
Finacially, Sime Darby (prior to the merger) alone might not has the resources to honor its contractual obligation to fulfill the "cost overrun".
As a "smart" entity, Sime Darby might has planned to merge with Guthrie & Golden Hope just to save itself from the cost overrun slaying. Looks like a scheme. Fishy scheme.
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