THE reason being, if you are a sucker then the following transactions would look perfectly normal to you, but if you are not a sucker, market regulators should pursue for a criminal conviction to defraud minority shareholders.
CONSIDER the following. On Feb 2021, Greenpacket bought Xendity Pte Ltd READ For RM40.5 million, promising shareholders READ : a 15% compounded annual growth rate (CAGR) with over RM100mil revenue over the next five years and a healthy profit margin.
HOWEVER, by Jan 2023, Greenpacket in which Francis Leong Seng Wui was the second largest shareholder, as well as executive director plus a director in Xendity, decided to sell Xendity READ : to Innov8tif Holdings Sdn Bhd for RM17.5mil or more than 50 per cent discount over its original proposed purchase price.
ONE can assume since the discount is huge, and the duration of Greenpacket buying and then selling of the asset is about two years, that Xendity is an asset of diminishing value.
YET now Francis Leong Seng Wui who has become the second largest shareholder in Revenue Group and its executive director not only wants to to buy back Xendity at a huge premium, he also wants to buy the company which bough Xendity. READ : Francis Leong Seng Wui's Revenue Group intends to pay a 14.5 per cent premium for Innov8tif Holdings over its Jan 2023,Sale Value of RM30.85 million in a deal now worth RM36 million
WAS Francis Leong Seng Wui acting in the best interest of Greenpacket when Xendity was sold or is he now pushing for Revenue Group to buy a horse with a broken leg?
