SIAPA MEMBAYAR SEBENARNYA

Kes Time dotCom menghadiahkan Halim Saad RM1.89 bilion dengan underwriter terpaksa menanggung risiko. Dia boleh bergelak ketawa menuju ke bank kerana Time dotCom kini sudah tidak berhutang dan beroleh RM900 juta tunai pula. Pihak underwriter terpaksa mengeluarkan RM1.415 bilion tunai untuk membayar bahagian yang tidak terlanggan. Ini sudah tentu akan mencederakan institusi kewangan negara.

Soalnya apakah underwriter memilikki dana secukupnya untuk membayarnya nanti? Kes ini membabitkan banyak underwriter kerana mereka pun tidak yakin mampu menanggung bersendirian. Ini memungkinkan dana awam seperti EPF, SOCSO, Tabung Haji dll dipaksa membeli saham ini nanti. Dana awam ini perlu membuat kenyataan terang dan jelas pelaburan mereka jika tidak ramai pihak akan terjejas.

ALIH-ALIH BAIL-OUT JUGA

Saya terjemahkan satu maklum balas kepada kenyataak Lim Kit Siang:

"Mekanisma IPO itu bermakna Time dotCom tidak akan terjejas oleh kekurangan langganan. Denga nberjanji untuk menyokong terbitan itu, CIMB (dan lain-lain konsortium) telah mengikat kontrek untuk menyediakan dana buat Time, dan mereka terpaksa memberi Time semua bayaran dengan atau tanpa bailout kerajaan.

Masalah kini terletak di bahu semua underwriter kerana mereka terpaksa membayar baki 75% lagi dari tawaran tersebut walaupun mereka sendiri tidak mampu membayarnya. Jika dana awam digunakan ia akan merupakan bail-out untuk underwriter pula (walaupun tidak Time dotCom).

Ini bermakna pihak yang gembira sakan hanyalah Time dotCom, kerana mereka dijamin mendapat bayaran hasil IPO itu. Yang rugi adalah baki 25% pelabur yang kini sudah tidak yakin apakah IPO tersebut akan tersenarai sebagai premium kerana banyak analis meramalkan ia amat meragukan."

Dengan kata lain, terbitan IPO Time dotCom lebih merupakan bail-out dengan menggunakan pasaran saham sebagai topengnya. Harga yang tinggi yang ditawarkan langsung tidak on par (senilai) dengan harga sebenar. Pulangan yang dijanjikan pula tidak logik kerana permintaan terhadap laluan fiber tidaklah setinggi mana.

TANPA PERKHIDMATAN TIME DOTCOM TAKKAN KEMANA

Lagipun khidmat talian fiber optik tidak mampu dilanggan oleh syarikat dan orang awam masakini akibat tekanan ekonomi. Setakat ini hanya 15% sahaja talian fiber Time diguna-pakai. [Rujuk: FEER 8/2/2001] Selebihnya tidak terjual kerana Time pun tiada 'fiber based services'. Tanpa kepakaran seperti Singtel, Time terpaksa bergantung kepada permintaan dalam negara. Tetapi tidak banyak syarikat memerlukannya kecuali untuk persidangan secara langsung sekali sekala (Mahathir banyak ditonjol menggunakannya untuk bersuka ria buat tayangan perdana. Tak tahulah kita siapa membayar semua kosnya).

Time perlu mencipta 'fiber based services' yang murah. Pengguna internet Malaysia masih di sekitar 10% sahaja dan syarikat talifon mudah alih tidak perlu menggunakan khidmat Time buat masa terdekat ini kerana kesesakkan talian tidaklah seteruk mana. Yang kesesakkan kini wang sahaja... termasuk Time dotCom juga.

Rencana Rujukkan:

Source: [BUNGARAYA]

Time dotCom fiasco - EPF, SOCSO should declare position

Media Statement by DAP National Chairman Lim Kit Siang in Petaling Jaya on Saturday, 17th February 2001:

Time dotCom's RM1.4 billion IPO fiasco - EPF, SOCSO, Tabung Haji and other government-linked funds and agencies should declare whether there is any government directive that they take up the subscription shortfall

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Although Time dotCom's RM1.89 billion IPO fell flat on its face making double history as the country's biggest offering as well as the biggest flop when it was undersubscribed by 75 per cent, Tan Sri Halim Saad is laughing all the way to the bank.

This is because Time dotCom will be Malaysia's only telecoms unit with zero debt with some RM 900 million in cash as the joint lead underwriters Commerce International Merchant Bankers Bhd, Perwira Affin Merchant Bank Bhd and Affin-UOB Securities Sdn Bhd had fully underwritten the issue and would now have to pay RM1.415 billion cash for the unsubscribed portion.

This will have far-reaching implications not only for the banking industry but raises the question about the future of corporate restructuring in the country.

I had yesterday said that Malaysian taxpayers are very concerned that the government would be embarking on another scandalous bailout - this time the RM1.4 billion bailout of the Time dotCom IPO undersubscription fiasco by using government-linked funds and agencies like EPF, SOCSO, Tabung Haji to take up the shortfall.

I have received the following response to my media statement yesterday:

"The mechanics of an IPO would mean that Time dotCom will not bear any shortfall from the undersubscription. By agreeing to underwrite the deal, CIMB (and the underwriter consortium) have already contracted to raise the funds for Time, and they would have to provide Time with the IPO proceeds, with or without a government bailout.

"The problem now lies with the underwriters as they are have to place the remaining 75% of the offer stock without being in a position to pay for it themselves. If government agencies and public funds were used, it would be a bailout of the underwriters and not Time dotCom per se.

"The only guys happy here would be Time dotCom, as they're assured of the IPO proceeds. The losers would be the 25%, who are now uncertain as to whether the IPO would list on a premium as most analysts say this is highly doubtful."

In the normal circumstances, where there is no extraordinary mix of politics with business, I would agree with the response and that the losers are the underwriters and may be the 25 per cent who had subscribed to the IPO.

However, the widespread concerns that the final losers of the Time dotCom IPO fiasco could be the taxpayers could not be dismissed and the following questions need to be asked:

Why was the full issue of RM1.89 billion fully underwritten by the underwriters concerned when the market reaction to the IPO at RM3.30 per share was that it was over-priced and that its value was more at RM2 per share? Was there any political pressure and/or any undertaking that government-linked funds and agencies like EPF, SOCSO, Tabung Haji and other public trust and provident funds would be tapped to make up for any shortfall in the event of undersubscription?

As the market is quite unanimous that when Time dotCom makes it public debut next month, its share price will nosedive below the IPO price, managers of EPF, SOCSO, Tabung Haji and other government-linked funds and agencies should declare whether there is any government directive, written or unwritten, that they take up the subscription shortfall.

In any event, these government-linked funds and agencies should be aware that the public are very vigilant and want full transparency to ensure that these funds should not be tapped for another bail-out operation for a private company, however well-connected politically, to buy up the undersubscribed IPO portion of Time dotCom at RM3.30 per share.

- Lim Kit Siang -

Time dotCom IPO fiasco - another RM1.4b bailout?

Media Statement by DAP National Chairman Lim Kit Siang in Petaling Jaya on Friday, 16th February, 2001:

Call on Daim to give assurance that the government would not bail out the Time dotCom's IPO undersubscription fiasco by using government-linked funds and agencies like EPF, SOCSO, Tabung Haji to take up the RM1.4 billion IPO shortfall

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Malaysian taxpayers are very concerned that the government would be embarking on another scandalous bailout - this time the Time dotCom IPO undersubscription fiasco by using government-linked funds and agencies like EPF, SOCSO, Tabung Haji to take up the RM1.4 billion IPO shortfall.

Time dotCom Bhd's initial public offering (IPO), the largest ever in Malaysia's history, suffered the ignominy of being one of the worst-ever performances by an IPO in the country when it was undersubscribed by 75 per cent. Applications were received for only 142.86 million shares worth RM471.4 million, or 25% of the total of 572 million shares (at RM3.30 apiece) worth RM1.89 billion made available for public subscription. The subscription rate will plummet to about 10 per cent if the placement of 84.2 million shares to certain investors and a turnkey contractor is stripped out of the subscribed portion.

Although the Time dotCom IPO fiasco highlights the crisis of corporate restructuring in Malaysia, it is of no concern to its managing director Tan Sri Halim Saad, as he is assured of RM1.89 billion cash as the joint lead underwriters Commerce International Merchant Bankers Bhd, Perwira Affin Merchant Bank Bhd and Affin-UOB Securities Sdn Bhd would have to pay RM1.415 billion cash for the unsubscribed portion.

Market analysts are fairly unanimous in the view that the underwriters will place out some of the excess shares to government-linked funds and agencies at the IPO price of RM3.30 per share. If this is the case, then it would be another deplorable example of the mixing of politics with business, where public funds are again raided to bailout a handful of selected corporate figures with special political connections to rescue them from their multi-billion ringgit follies and misjudgements.

The market is unanimous that when Time dotCom makes it public debut next month, its share price will nosedive below the IPO price. Independent analysts value Time dotCom at RM1.50 to RM2.30 a share, although there are those who expect the share to be eventually valued at below RM1.50.

Whatever the eventual price level of Time Dotcom, it is clearly not in the public interest for government-linked funds and agencies to be tapped to mount another bail-out operation for a private company, however well-connected politically, to buy up its undersubscribed IPO portion at RM3.30 per share.

For this reason, the Finance Minister, Tun Daim Zainuddin should give a public assurance that the government will not go to the rescue of the RM1.4 billion Time dotCom IPO shortfall and that the government would not bail out the Time dotCom's IPO undersubscription fiasco by using government-linked funds and agencies like EPF, SOCSO, Tabung Haji and other public trust and provident funds.

After the RM1.79 billion government bailout of Tan Sri Tajudin Ramli's 29.09 per cent of MAS stake through Naluri and the RM6 billion bailout for the two LRT companies, STAR and PUTRA, another billion-ringgit bailout for Halim Saad's Time dotCom IPO will be the last straw to break the camel's back.

The Auditor-General and the Accountant-General should issue stern warnings against any misappropriation of government-linked funds and agencies to bail out the Time dotCom IPO fiasco.

The Parliamentary Public Accounts Committee should also take the unprecedented pre-emptive action to summon an emergency meeting to get iron-clad guarantees from the Treasury that no government-linked funds and agencies, whether EPF, SOCSO, Tabung Haji or the various public trusts and provident funds would be touched for the purpose of taking up the RM1.4 billion Time dotCom IPO shortfall.

- Lim Kit Siang -