This article first appeared in The Edge Malaysia Weekly on November 6, 2017 - November 12, 2017

SINCE emerging as a substantial shareholder in Sumatec Resources Bhd in 2013, businessman Tan Sri Halim Saad’s repeated attempts to turn the then-PN17 company around have faced numerous hurdles.

In a brief conversation with The Edge, Halim says he has invested roughly RM900 million in Sumatec and the Rakushechnoye oil and gas field in Kazakhstan.

At the time of writing, he held a 16.79% stake in Sumatec. Since his entry in May 2013, the adjusted share price of Sumatec has risen from nine sen to a high of 61 sen on Aug 18, 2014, before tumbling to six sen last Thursday.

Given Sumatec’s legacy problems from before Halim’s entry, particularly with its former shipping business, have continued bogging down the company to this day, it would seem easier for the businessman to cut his losses and find another listed vehicle to monetise his oil and gas concession in Kazakhstan.

So, why persist and offer the concession to Sumatec to buy now?

In response, Halim indicates that doing so would leave other Sumatec shareholders high and dry, and reiterates his commitment to the listed company.

“My name is riding on [Sumatec]. If I abandon Sumatec now, I will not enjoy support from the capital markets in future,” he says.

At present, Sumatec is the only listed vehicle on Bursa Malaysia where Halim’s name surfaces.

Last Thursday, the company’s market capitalisation was RM223.22 million — a far cry from its last peak of about RM2.1 billion back in August 2014 when global oil prices began their long tumble from a peak of US$114 on June 19, 2014.

Halim is confident that Sumatec’s fortunes will improve once the legacy issues are resolved and it is able to focus on the Rakushechnoye field operations.

To get there, however, he will need other Sumatec shareholders to agree to the proposed acquisition and its related proposals — a tough proposition as many may hesitate to put more money into the company, given its performance in the past few years.

Time will tell if the latest proposals bear its promised fruits.  

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