KUALA LUMPUR (Bernama), Nov 26 — Maika Holdings Bhd, in its existing structure, will continue to be a punching bag for aspiring politicians to make political gains, according to its chief executive officer S. Vell Paari.

As such, it would be better for Maika to be liquidated, he said in a statement today.

Vell Paari said this in response to the claim by businessman, Datuk V.K.K. Teagarajan, that Maika had suffered losses and its shares, which were priced at RM1.00 apiece when it was formed in 1986, were now sold for 30 sen each.

He said the company last year had proposed a resolution to sell all its assets and distribute the surplus to shareholders.

“Maika would have been in a position to buy back its shares at a minimum of RM1.00 each including its bonus shares, but that plan has to be put on hold due to injunction by a shareholder to stop the company from acting on the resolutions,” he said.

Vell Paari said Maika had tried discussing with the shareholder to come to an amicable solution.

In the meantime, he said, Maika has submitted an application to the High Court to allow it to set a date to hold an extraordinary general meeting (EGM) and the court has set to hear the application on Dec 2.

“If successful, Maika will then immediately call for an EGM to approve the resolution for share buyback at a minimum of RM1.00,” he said.

He said since the announcement of the buyback plan at RM1.00 per share, there were unscrupulous people who preyed on innocent shareholders so that they could make a quick 70-sen profit per share.

“I will get my officers to immediately call Teagarajan to give information on any knowledge of the 30 sen per share transaction that has taken place," he said.

Vell Paari said for shareholders who approached Maika to sell their shares, the company would identify potential buyers to undertake transactions at RM1.00 per share.

He said since there were many shareholders who did not want to cash out and wanted the company to exist, it would be advisable to set up a new company (newco).

“The funds of the shareholders who wanted to stay and the remaining assets of Maika after liquidation would then be transferred to the newco, which would have new board members appointed by shareholders,” he said. — Bernama