On 2.6.2010, Kenmark was trading at 6 sen per share (market capitalization of RM10.74 million)
Mr. Ishak bought 57.6919 million shares on 1.6.2010 and 2.6.2010 (32.36% of total market shares).
Surely this buying is based on unequal information which he possesses.
Who were the sellers of these shares?
Pity the shareholders whose shares were pledged as securities for loans which were forced sold.
How can this market be better regulated?
Here is an attempt at estimating the liquidation value of Kenmark:
http://spreadsheets.google.com/pub?key=tZ7l9at-gaLGGpM4h5RaOsw&output=html
Ref:
http://announcements.bursamalaysia.com/EDMS/edmsweb.
nsf/LsvAllByID/337D2BBAB10029B248257737003B6066?OpenDocument
Announcement Details :
Name
Date Acquired ... No. of shares ... %
BHLB Trustee Berhad for a discretionary trust
for the family of Ishak Bin Ismail
1.6.2010 ... 10,000,000 ... 5.61%
2.6.2010 ... 20,000,000 ... 11.22%
Unioncity Enterprises Ltd
2.6.2010 ... 27,691,900 ... 15.53%
Also read:
http://whereiszemoola.blogspot.com/2010/06/
more-incredible-news-flow-from-kenmark.html
----
Business Times
Ishak now a major investor in Kenmark
By Azlan Abu Bakar
alan@nstp.com.my
2010/06/04
Datuk Ishak Ismail, former KFC deputy executive chairman bought 32.36 per cent of Kenmark, a furniture maker, on June 1 and 2
DATUK Ishak Ismail, KFC Holdings (Malaysia) Bhd's former deputy executive chairman, is now a major shareholder of financially-troubled Kenmark Industrial Co (M) Bhd (7030) as he bought while others were busy dumping the stock.
He bought 32.36 per cent of Kenmark, a furniture maker, on June 1 and 2, as the stock hit record lows of between 3.5 sen and 4.5 sen. The group did not say who were the sellers.
Kenmark also did not say how much he paid for the stake but based on the closing and last traded prices of the two days, Ishak could have spent about RM6 million. He may have even paid much less, or probably half of that, if he had bought the stake at the days' lows.
Kenmark, a PN17 company, has yet to report its fourth quarter numbers for the period to March 31 2010 as its managing director and major shareholder James Hwang, a Taiwanese, went missing since last week.
From then on, the group went into a tailspin as two banks said it defaulted on loans, named a receiver to a subsidiary while all operations ground to a halt and some 400 of its workers were uncertain of their future.
Kenmark is now the subject of Securities Commission (SC) probe while Bursa Malaysia has ordered it to appoint a special auditor to ascertain if there are any irregularities.
The group has hired Messrs UHY Diong as its special auditor.
In 2001, Ishak was fined RM400,000 by the Sessions Court for giving false information to the SC.
A former politician, he was once involved in a battle with the Lau brothers for control of KFC. Ishak was firmly in control of KFC until the Asian financial crisis hit Malaysia in 1997.
Kenmark also named new directors yesterday. They are executive chairman Datuk Abd Gani Yusof, executive director Ho Soo Woon, and independent non-executive directors Ahmed Azhar Abdullah and Woon Wai En.
Kenmark's independent directors Zainabon @ Zainab Abu Bakar and Yeunh Wee Tiong have tendered their resignations yesterday.
"The new directors are currently assessing the current situation of the Kenmark Group and are in discussion with the receivers of Kenmark Paper Sdn Bhd to allow the re-activation of business operations at the business and corporate office at Port Klang soonest possible and restore market confidence," Kenmark said in a statement to Bursa Malaysia.
The new directors also stressed that all employees have been paid salaries up to May 2010 and all payments to statutory bodies have also been made.
On June 2, Kenmark said Hwang fell ill in China from May 24 and he could not be reached as his family barred all calls. The group's new directors hope that he could return by next month.
As for the other two Taiwanese directors, Chang Chin-Chuan and Chen Wen-Ling who were also said to be missing, they have made contact with Kenmark.
Shares of Kenmark have been suspended since June 2 and its last traded price was 11.5 sen.
http://www.btimes.com.my/Current_News/BTIMES/articles/kenshak/Article/index_html
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