Companies in general undertake transactions for a commercial reason. Commercial transactions undertaken could be with third parties or related parties. For companies listed on Bursa Malaysia, they are governed by rules and regulations of Bursa Malaysia to ensure that any transactions undertaken by them with related parties are not detrimental to the interest of the listed companies and minority shareholders.
In certain circumstances, transactions with related parties that are not in the ordinary course of business are required to be approved by the minority shareholders. Examples would include an acquisition or disposal of a significant asset or undertaking by the listed company with the related party. Under such circumstances, as required by Bursa Malaysia, the minority shareholders would require independent and competent advice on the proposed related party transaction in order for them to decide whether to approve or reject the proposed transaction.
The independent advisor will scrutinize the terms and substance of the proposed transaction, to ascertain and opine whether the proposed transaction is fair and reasonable. Issues that will assessed by the independent advisor include but are not limited to rationale, strategic fit, valuation, consideration, material terms and etc.
We have been approved by Bursa Malaysia as an independent and competent advisor, and we have provided independent advisory services for listed companies undertaking such related party transactions.