AMMB Holdings has agreed to a RM2.83
billion global settlement in relation to the 1MBD matters. This is in addition
to the paltry RM53.7 million penalty imposed by Bank Negara Malaysia and paid
by the AmBank Group.
The Sarawak Report (Mar 17, 2021)
suggested the whole thing is a “stitch-up” with counsels for Government and
AmBank working together to conclude an agreed sum! If that is true who is
representing the minority shareholders? The Minority Shareholders Watchdog? The
SC? It doesn’t seem so for now.
Why did 7 members of AmBank’s senior
management dispose their personal shares in the bank on 29/30th
December 2020? Is this insider trading?
The date happened to coincide with a
spike in prices after a poor year at the bank. Price, of course, plummeted
after the announcement of the settlement.
ANZ, a key shareholder, has written down
its equity interest of 24% in AmBank by AUD212 million. ANZ has been
unsuccessful in trying to sell its stake. The carrying value of its stake is
lowered to AUD850 million from AUD1.05 billion.
AmBank’s AMMB Holdings Bhd CEO, Datuk
Sulaiman Mohd Tahir, recorded a huge jump in pay from RM6.64 million in 2020
compared to RM4.2 million in 2019, a 58% increase. However, the financial year
for AmBank is April 2019 to March 31, 2020 and so it is not reflective of more
recent developments --the effect of the pandemic and the settlement sum.
Whatever the case, the minority shareholders are left with the consequences,
drop in value and little say on proceedings.
Reference:
1.
Did
AmBank's Minor Shareholders Just Get A Mugging From All Sides? 16 March 2021,
Sarawak Report
2.
Ahmad
Naqib Idris, SC says reviewing share disposal by Ambank senior execs, declines
further comment, 18 March 2021, The Edge
3.
ANZ
writes down AmBank stake after 1MDB settlement, 1 March 2021, The Star
4.
AMMB
agrees to RM2.83bil global settlement over 1MDB, 26 Feb 2021, The Star
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