SC: No evidence of CDS leaks

By Aidila Razak

The Securities Commission (SC) said that preliminary investigations found no evidence to support claims that confidential information from CDS accounts have been leaked, SC chairman Ranjit Singh said.

“We have asked the Bursa Malaysia to give us a full report on this and Bursa has undertaken their review.

“At the moment there has been no credible evidence to support the allegations…Having said that, the review is ongoing at Bursa and the SC,” he told reporters at the commission’s headquarters today.

Ranjit was responding to a question on whether the Finance Ministry had instructed the commission to probe an alleged leak of personal information from the CDS account.

In particular he was asked to respond on complaints by investors that they are being contacted by those wanting to sell Patimas and Tiger Synergy shares.

Ranjit said that the probe was the SC’s initiative and that no directive was given by the ministry.

‘Shareholders can decide not to sell’

Eugene Wong

Meanwhile, on disputes over takeover prices, the commission’s executive director for corporate finance and investments Eugene Wong said that the matter is between the shareholders and company.

“In a takeover situation you have a choice. If you feel the price is low, you don’t have to sell. Of course then the company may be delisted and this will then come under the Companies Act,” he said.

In the event of compulsory acquisition, shareholders can take the matter to court and there have been cases where offers have been revised following complaints.

He added that the commission’s job is to ensure that shareholders get adequate information and the opportunity for independent advice on the matter.

He said that independent advisors must indicate if the offer value matches the value of shares.

If the offer value is lower than the value of the shares, then the advisor must then inform if this is reasonable, given prevailing conditions.

For example, he said, it could be the case that to achieve a fair value assets need to be liquidated.

He said that the commission also looks at how independent advice is presented, and it will take “appropriate steps” if found that independent advice does not give shareholders the required information.