Lol was reading the CHGS termination circular... the below is comment from a planter's perspective. And no I do not own shares in CHGS...

The report states that the expected FFB yield is at best only 10 tons per hectare, this is the absolute lowest FFB yield I have ever seen, even in inhospitable terrain like central kalimantan, Irian Jaya and Sumatera. In those area, not only elephant but 'ninja' will come and harvest your trees at night, floods are common, roads are non-existent, they are still making good profits? In Sarawak the soil is even worse (peat soil), yet plantations trives there.... also why mention gua musang but not lahad datu... what happen to the land there?

The planter responsible for this debacle must be the worst planter on earth... or is the report made to scare investors? Or the plantation is badly managed to lower valuation? Anyone is even certain they bought fertilizer?

By the way Lahad Datu is one of the most fertile lands available to a plantation company, and they are getting record FFB yield there. Workers are sooooo plentiful they are waiting at street corners (daily wage) to be picked up to plantation to harvest. A fried of mine owned 100 hectares (hilly land) there and the profits is very good. Have a nice holiday to Tawau/Lahad Datu and you will see why. Foreigners outnumber locals... or you can stay at the Felda Sahabat Resort , nice seaside/plantation resort at Lahad datu.. to see even better picture and have a nice holiday with pristine waters, surrounded by palm trees.

Cost per ton CPO is about RM 1,500-1,800 now. CPO price is RM 2,400 and going up.. There is still a decent profit margin of RM 600 or 30% gross profit...

looking at the proforma 2012 financial results, they are getting >50% gross profit and >30% on the plantation which is already very good by industrial standard. Why such good results but painted such a bad picture on the future viability of the plantation? I see that the profit is starting to shoot up due to the tree coming to the 7-15 years peak production period... and they know it.

If they want to terminate, then by all means pay everything up, why wait 2 years... or they are using future profits (from plantation) to pay zero interest loans...? You are basically selling the land to them and take interest free payment spread over 2 years Oh yeah, biological assets are not mentioned.. are they getting for free?

Such a important decision, decided by show of hands at AGM? This is the most silly method, to be fair to minorities they should have a postal vote to share holdings. Why show of hands, they can just get 100-200 proxy to dominate the meeting. Each shareholder can split to unlimited proxy.... each proxy represent a portion of shares, and a 'hand'. You got 1 share also count 1 hand, and 1000 shares also count 1 hand... Also show of hand do not need to be counted, as long as the 'chairman' is 'satisfied' there is enough majority in the show of hands, the resolution will be passed.

A letter of recommendation from the con-sultant? No audit report, no valuation report, no expert (in palm oil plantation) viability report, no geo-tech report. How come so easy ah?

Also the books does not balance... total cash received 197 million, 90% of 215 million. Land is 107 million which is proposed to be sold to Bee garden as part of liquidation. Where is the biological asset?!?!?! This should form part of the fixed asset if they do a proper valuation.

Also those bad points given by CHGS and the 'biased' con-sultant does not match the financial results...the excellent FY13 proforma results. Why ah?

This post has been edited by gark: Jan 28 2013, 01:42 PM

You are right, they have considered all legal challenges, there is nothing much a investor can do other than vote NO or force the meeting to be postponed.

The AGM meets all rules and regulation.

MSWG cannot attend the meeting cannot act on behalf of holders, they are merely NGO with no executive power. They can only advice and complaint, but so many complaints by MSWG goes unheeded by the government, just like the Glenealy plantations takover, Bandar Raya, and many more.

All these discussion of what to do etc is a waste of time.

Either you have 25% of the votes to scuttle the proposal or you have to accept whatever liquidation money they decide to give you, and it will probally below your investment cost.

Basically no need to discuss anymore, they are out to eat you alive, get as many people to attend and vote NO! That's basically all you all can do.

IMHO i think the management already have >50% votes (including proxy) in hand, otherwise they will not dare to propose such a termination and have the minorities shoot it down. I am sure they have all the time to prepare for everything and rigged the votes in your favour. If you are them, will you not do so?

This deal is very similar to the one done by Glenealy plantations recently, in which the minority shareholders stormed out after outvoted by the management...

This post has been edited by gark: Jan 29 2013, 09:58 AM

Not really, if you look at the FY13 proforma accounts, they have fantastic profit buried in the back pages of the proposal. Gross profits margin >50%, net profit margin >30%.

It's a fantastic business, why else do you think the owners want to take it private. They paint a bleak picture to 'entice' the minority shareholders to sell it to them...

This post has been edited by gark: Jan 29 2013, 10:07 AM

That is why they want to take over before the payment date on 14/02...so no need to pay the dividends.

Also there are no sign of accounts manipulation, all is proper, except the management give a bleak prospects for the future. Future earnings are anyone's guess. So this is not accounts manipulation.

They only need 75% of the votes present to force you to sell as per listed in the circular. If only 100 people come to EGM, 75 person vote yes, means the whole proposal goes even though the other 20,000 people did not attend they are forced to sell their shares.

The management have decked all this in their favor, expect 200-300 proxy which is pro management to be present at the meeting, including lawyers, con-sultants, accountants and lots of bouncers...

However all is not lost, as long as the minority shareholders can muster enough votes in they can break the 25% barrier.. but is those minorities as organized as the management? The management have lots of time to prepare, the minorities are running around like headless chicken and have 1 more week to go...

This post has been edited by gark: Jan 29 2013, 10:52 AM

Well the circular proposal is a legal document and need 75% votes to approve as per written agreement between the company and investors. There is nothing to dispute as it is black and white and all growers agreed to this when they agree to join the scheme. It is just that they never thought it can be used back against them.



Legal documents are powerful.... Look before you sign....

This post has been edited by gark: Jan 29 2013, 11:10 AM

Read Clause 17.1 of the trust deed you sign when you joined the scheme...

Pursuant to Clause 17.1 of the Trust Deed, the CHGS may be voluntarily terminated by resolution passed by a majority in number representing three-fourths (%) in value of the Growers present in person or by proxy at a meeting of the Growers to be convened in favour of any proposal made by PGCB as an alternative to the CHGS.

The amount of people attending is not material, as long as the 'chairman' is satisfied there is quorum to start the AGM. Probally they will plant lost of supporters there... so there will not be 3 people...

This post has been edited by gark: Jan 29 2013, 11:14 AM

Really really smart and overpaid lawyers which made the agreement in the management favor...

"convened in favour of any proposal made by PGCB as an alternative to the CHGS"

Read closer, not only termination, they can invoke the clause to ANY other proposal .....

This post has been edited by gark: Jan 29 2013, 11:20 AM

Don't think so, the clause is listed very very clearly, and the growers signed every page of it. The clause is not manipulated, it is doing exactly what is written in the clause. A clause can be used for good and bad reasons.

In the eyes of the court the agreement is legally binding and not challenge-able.

With only 46 likes and several comments with hardly any updates on the facebook page.

I just don't see any concerted effort to thwart the termination of the scheme. How many people actually turned up at the meeting in Ipoh and SS2?

I really wish you guys all the luck!

Hhahahahahaha

At least one less excuse for them to terminate later right?

Last day of lodgement of form of Proxy is on 6th February 2013 at 10 am. This means the last date you can send the form of proxy to attend the AGM is probably by 3/02 or 4/02 (if send by overnight courier).

This means you have exactly 5 days to do so...get cracking...

Please note that a proxy appointed MUST be a grower and not anyone you like...

This post has been edited by gark: Jan 29 2013, 06:54 PM

Yesterday their website auto direct you to virus/trojan website.. LOL.. lucky my anti virus stopped it. I think they are being hacked as many people hate them.

Wah lau soooo long discussion like than can last 2-3 hours with no results. This is war, not casual supper meeting....

Easy steps :-
1. Appoint grower who are going to AGM
2. Everyone else not attending, sign their proxy to these growers who are going.
3. Vote NO at AGM!

That is the best bet, no point discuss SWOT analysis lah, strength, weakness lah.... somore want next meeting dateline in 4 days lah...

THIS IS DO OR DIE... EGM.

The way I see this is organized, the big fish is gonna win easily...

This post has been edited by gark: Jan 30 2013, 10:50 AM

Hallo friend, you know the dateline or not? Proxy form to be in latest by Feb 6 at 10 am.

Still you want to discuss on Feb 5 at 8 pm???!!?!?

Yeah I will reply here as well...

No this EGM has only one agenda, the chairman will not let other motion come in as it is already stipulated in the proposal.

If you want to propose a new motion (such as change chairman, postpone EGM etc )you will need 50% of the votes and also lawyers present to counter the owner's lawyer and they will try the best to shoot it down.

If there is not enough voters/proxy present what can you do? Can you get the 50% to propose the above??

First get the number to back you up before even you can even do anything.

Witness use your relatives to sign and put the name +I/C number.

Only leave the appointed proxy agent name and i/C blank & address blank.

If you post proxy no need to attend. If attend no need to post proxy.

Basically CHGS is broke, cannot pay out anymore money ask you all to sell the investment to them and they will pay you back slowly...IF they can sell the land. Also no guarantee you will get back your full amount....

Also the GM says that the farm only yield 6 ton per acre... which is 50% below industry standard. And they want to sell the land for RM 170 million for 10,000 acre, which makes it RM 17,000/ acre. Why the hell anyone in the right mind would want to purchase land at RM 17,000 per acre and only yield 6 ton of FFB per year? Really this GM, Mr Kothandapani A/L Amirtthasingam is worst planter on earth?

Psst they auction the land at 17K per acre but sold it to growers at 20+k per acre...5 YEARS AGO...

BUT the tree is JUST 5 years old, naturally the tree will be low yielding later when it reach maturity it should be able to produce 10 tons/acre easily...

This post has been edited by gark: Jan 30 2013, 06:14 PM

The scheme is more or less worded as 'contract farming' so it does not really involve SCC and BI. However being a 'contract farming' the investor have absolutely no rights on the assets. It is not illegal, but investors get zilch protection.

Example MR A owns the land. Mr B gives money to Mr A 'farm' the land with agreed splitting of profits ie 50:50. Mr A used the money to farm but ultimately crop failed, so no returns. Mr A gives back Mr B whatever left of the money and have no further rights, but Mr A still owns the land.

IMHO, I wonder why most people who wants a piece of the oil palm action, don't just invest in big listed plantation companies. They have more security, land not over priced (most of the land book value have not been revised since 80's), expert planters and you get similar or more returns than these 'scheme'.

This post has been edited by gark: Jan 31 2013, 10:34 AM