PLANS are underway, by the Chin Boon Long led group, commonly referred to as the Corporate Mafia to squeeze out the last of the remaining minority in Hong Seng Consolidated.
THE Corporate Mafia's weapon of choice is a reverse share exercis exercise, better known in this part of the universe, as a share consolidation offing.
AN announcement of the share consolidation is expected to be out very soon, which will a minimum of ten shares boxed into one or a maximum of 30 existin g Hong Seng Consolidated shares, consolidated into one share.
SHARE consolidations are a big red flag, that a company is financially distressed, and is at risk of being delisted from the stock exchange witbout such a corporate exercise. READ : Share consolidation leaves shareholders with numerically fewer shares, as it forces a company to consolidate shares in an attempt to save itself from failure.
IN, Hong Seng Consolidated's case, such an exercise,is all the more of a bogeyman, as the company has lost more than RM7 billion of its value inside 36 months due to a large chunk of its announced proposed multi billion ringgit earning ventures turning out to be HOT AIR
