SUBANG JAYA: Tamco Corporate Holdings Bhd will announce its new core business in six months, group managing director Abdul Latif Mahamud said. “We will make that announcement in six to eight months when we feel the time is right,” he said after the company EGM yesterday.
There are 2 possibilities:
Possibility 1) Assuming they DO have a business plan in mind. From the point of view of an investor of the company, isn't it the obligation of the company to inform every shareholders the future direction of the company? Even if there is a delay, aren't 6 to 8 months a bit too far fetched? Let's look it another way. Let's say you and a partner, let's call him Ah Kiang, is operating a business, Ah Kiang being the managing partner. One fine day, Ah Kiang wake up and suddenly decided to sell off the business. Well, since he is the managing partner, you agree with his move and whatever the price he is selling. So now, the business gone and you two are holding a huge pile of money (to be exact, he is holding, because bank signatories are all under his name). So, you ask Ah Kiang, "what to do now?" And Ah Kiang replied "I cannot tell you now, but I will tell you in 6 to 8 months time, when I feel the time is right." I don't know about you. But I will laugh if I hear him saying this to me.
Possibility 2) They don't have a business plan in mind. The way I look at it, this is a more likely possibility.
Abdul Latif did not disclose the nature of the company’s future core business but said: “We are considering several options. We have plans but we cannot reveal them at this moment.”
However, he confirmed that the company was venturing into “new and different” business streams.
“We are looking at businesses other than what we have now and have identified certain areas,” he added.
Again it's like saying, "We don't know what to do with your money yet, but since you ask, I can only tell you that we are not going back into the old business".
Meanwhile, deputy chairman Datuk Siew Ka Wei said the company was in good hands and had a promising outlook.
“This is the management that brought the company from where it was (when it was listed) to where it is today.
“The management deserves the trust (of its shareholders) to look for a new business that would create value,” Siew added.
Now, Dato Siew is a more reasonable guy. My interpretation is: "Look, we've made you this much money over the years, so you have to give us time to sort this @#% out."
Anyway, I am excited with the phrase "promising outlook" he used.
At the EGM, Tamco shareholders approved the proposed disposal of the company’s core switchgear business to India-based engineering company, Larsen & Toubro Ltd, for RM378mil.
Siew said the bulk of the proceeds would be distributed to shareholders.
Nice proposals. Let's see if it materialise.
Tamco will be disposing of its entire equity interest in four subsidiaries: Tamco Switch-gear (M) Sdn Bhd, Tamco Shanghai Switchgear Co Ltd, Tamco Electrical Industries Australia Pty Ltd and PT Tamco Indonesia.
The disposal is expected to be completed in the first half of this year.
Whatever the case, I think the MD has a trustworthy look. So, the shareholders should have some patience and wait for 6 to 8 months when things become "Promising".
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