Local tycoons remained relatively quiet this year without any major corporate exercises or manoeuvres, probably sensing the rising uncertainty ahead in the domestic as well as global economies. Nevertheless, tycoons being tycoons, they created some interesting news that grabbed the headlines. - by Siow Chen Ming

T Ananda Krishnan
Major shareholder of Maxis, Astro All Asia Networks, Bumi Armada

The year has not turned out so well for Ananda, who faced graft charges in India and saw the market value of Bumi Armada Bhd, an oil and gas service provider that is majority-owned by him, more than halved as a result of the recent tumble in global oil prices.

According to foreign news reports, Ananda — along with South Indian politician Dayanidhi Maran (India’s telecommunications minister between 2004 and 2007) and Dayanidhi’s brother Kalanithi Maran — was charged in August with alleged corruption in helping the Maxis group take control of Aircel Ltd in 2006.

According to The Edge Review, executives of Maxis Communications and Astro All Asia Networks Ltd — which Ananda owns — claim the tycoon and his corporate entities have “fallen on the wrong side” of Indian politics. It was also reported that Ananda and his associates intend to fight any attempt to extradite them.

Meanwhile, as global oil prices plunged, Bumi Armada, in which Ananda holds a 42.26% stake, saw its market capitalisation fall 59% from the beginning of the year to RM6.2 billion as at Dec 15. Bumi Armada’s CEO Hassan Basma has also tendered his resignation effective Jan 1, 2015.

Tan Sri Syed Mokhtar Albukhary
Major shareholder of MMC Corp, DRB-Hicom

In a surprise move, Syed Mokhtar’s DRB-Hicom Bhd in May appointed former prime minister Tun Dr Mahathir Mohamad as the chairman of its unit Proton Holdings Bhd.

That sparked murmurs in the automotive sector that the tycoon and Mahathir would seek more concessions from the government to help Proton, which is struggling to regain market share. News of the national carmaker seeking huge amounts in R&D grants from the government also grabbed the headlines.

The year has not seen major corporate or M&A exercises by Syed Mokhtar while the planned listing of independent power producer Malakoff Corp Bhd, which is controlled by his flagship MMC Corp Bhd, has seen delays.

Nevertheless, MMC’s purchase of MISC Bhd’s 15.73% stake in port operator NCB Holdings Bhd for RM221.9 million is deemed significant as it is said that NCB could become the listed port vehicle for MMC’s Port of Tanjung Pelepas as well.

Syed Mokhtar’s Tradewinds group also tied up with prominent Middle-Eastern businessman Ali Rashed Alabbar this year to develop properties in Malaysia.

Tan Sri Vincent Tan
Chief of Berjaya Group

It has been a busy year for Tan, who made the headlines not only in the local media but also in the UK and the US.

Most recently, he was in the news when  the share price of his company MOL Global Inc — in which the sultan of Johor Sultan Ibrahim Ismail is an investor — tumbled after its Oct 9 listing on the US’ Nasdaq. Triggered by reports of a sharp fall in earnings, the stock plunged to US$1.69 on Dec 1 from its initial public offering (IPO) price of US$12.50, wiping out US$729.7 million in market capitalisation.

Tan then issued a statement to express confidence in MOL Global’s prospects and its management. The stock had rebounded to US$2.64 by Dec 16, but that is still far below its IPO price.

Tan also listed 7-Eleven Malaysia Holdings Bhd this year. It performed well initially but was dragged down by the overall bearish mood on Bursa Malaysia.

The businessman, who owns English football club Cardiff City, also drew media attention in the UK for supposed run-ins with the fans and the club’s manager. Tan has said he will consider selling the club after it makes it back to the Premier League.

Tan Sri Quek Leng Chan
Chief of Hong Leong Group

While Quek is known as an avid stock picker, it would appear that he chose the wrong time to enter the oil and gas industry, whose prospects have been dimmed by falling oil prices.

The tycoon bought a 9% stake in TH Heavy Engineering Bhd (THHE) in 2013 at 45 sen per share and briefly enjoyed good gains as the stock surged to RM1.04 in February this year. But then the market turned, sending THHE tumbling to only 29.5 sen as at Dec 15.

In April this year, Quek and his former lieutenant Paul Poh bought a 15.5% stake in Alam Maritim Resources Bhd at RM1.35 a share. The stock had dropped to 54 sen as at Dec 15.

Quek’s Hong Leong Capital Bhd (HL Cap) was also in the news after repeatedly failing to meet the required 25% public shareholding spread, which led to its recent appeal to Bursa Malaysia to keep the spread at 18.67%.

HL Cap’s tight public spread is a result of Quek’s failed bid to privatise the company, which was blocked by substantial shareholder Datuk Dr Yu Kuan Chon.

Tan Sri Lee Shin Cheng
Chief of IOI Group

Lee’s IOI Properties Group Bhd (IOIPG) earned worldwide attention after it recently signed a deal to buy a 37.17% stake in Taipei Financial Centre Corp, which owns skyscraper Taipei 101, for RM2.74 billion.

The deal, inked with vendor Ting Hsin International Group, which was in financial distress due to a major tainted cooking oil scandal, provoked uproar in Taiwan’s political and corporate circles, considering the importance of Taipei 101 as a symbolic landmark.

In a statement, IOIPG assured that it was sincere about the proposed acquisition and that it would abide by Taiwanese laws in all respects if the said proposal goes through. “IOI Properties is apolitical and has no hidden political agenda behind the proposed acquisition,” it said.

IOIPG was relisted in January this year.

This is not the first time Lee has shown a penchant for iconic buildings. His IOI group had made a bid for the HSBC Tower in London in 2009, reportedly for about 800 million. The deal did not materialise.

In 2008, the group won a bid to acquire Menara Citibank in Kuala Lumpur, but then pulled out just as the US subprime mortgage crisis began to unfold.

This article first appeared in The Edge Malaysia Weekly, on 22 - 28 December 2014.

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