Sour Grapes

Kudos to the Wrath of Grapes for the enlightenment on the ASLI saga... in layman's terms that is. And there are a few equations and scenarios given to make your understanding of the saga much clearer. Not withstanding Dr. Lim's findings, there's the best there is. Here goes:


Posted by: TheWrathOfGrapes October 13, 2006 04:21 PM on Jeff's Blog

Situation: Ali owns 100 Tenaga shares. Par value $100 ($1 per share). Market value $1,000 ($10 per share. Ah Chong owns 1,000 Farlim shares. Par value $1,000 ($1 per share). Market value $430 ($0.43 per share)

Oxford Methodology: Ah Chong is 10 times richer than Ali

Situation: Ali owns 100% of Ali Berhad. 5 years ago, he sold off 90% of Ali Berhad at $100 million. He bought a property in London for $30 million and a property in Malaysia at $10 million after 7% discount; Invested in shares in Africa $20 million ; Spent son's wedding $10 million; Gave his first wife alimony $30 million after marrying his 2nd wife.

Oxford Methodology: Ali is holding only 10% share in Ali Berhad now. Ali is marginalised because other races have 90% share. He should be given an additional 20% to make 30%. Nobody knows anything about his foreign assets although his personal marital affairs became hot news in Utusan Malaysia.

Situation: Ali owns 100% of Ali Berhad. He sells off 90% of Ali Berhad to a GLC controlled by UMNO

Oxford Methodology: Ali Berhad is no longer a Bumi company since GLC is not counted as a Bumi company. Ali share is 10%. Since the GLC doesn't want to sell down its shares, Ali should be given another 20% in another company, Ah Chong Berhad to make 30%.

Situation: Ali owns 100% of Ali Berhad. He sells off 90% of Ali Berhad at $100 million (market $10 per share) to Ah Chong 5 years ago.

Oxford Methodology: Ali share is 10% now. Ah Chong should sell back 20% of Ali Berhad to Ali at par value of $1 per share to comply with bumi equity policy.

Situation: Ali is given 30% share (30 million shares) in Muthu Berhad at an IPO price of $1.50 per share for a total sum of $45 million. After 1 year Ali sold off all his shares in Muthu Berhad at $10 per share for $300 million. He made a cool profit of 255 million.

Oxford Methodology: Since he does not now own any share, he is entitled to another bumi portion (30%) of IPO in Ah Chong Berhad at $1.50 in the 2nd year. Since the authorities adopt a Never Ending Policy, it doesn't matter how many times you apply for an IPO as long as you are smart enough to sell off all your shares before applying for an IPO or use the name of your father uncle, aunty, cousins, in-laws, who-so-ever as long as it sounded malay. Ali proceeded to buy Peter Berhad, Ranjit Berhad, Sayonara Berhad, etc, .... in the 3rd, 4th, 5th year.....

Conclusion: With Oxford methodology who needs other methodologies?