Matrix Concepts Holdings Bhd - Why the urgency in donating shares to a school the CEO attended for only four months?

19/8/2014 – Matrix Concepts Holdings Berhad's CEO Dato' Lee Tian Hock is donating 5 mln shares of his own shares in the company to Sekolah Menengah Chung Wah in Port Dickson.

This is being done in the company's quiet period.

Lee is currently the company's largest shareholder with a 19.75% stake.

The 5 mln shares represent about 1% of the company, and are worth around RM16 mln.

The August 4, 2014 announcement didn’t mention why Dato’ Lee is making the donation, nor what the relationship between Lee and Sekolah Menengah Chung Wah is.

But The Star Online on August 2, 2014 ran an article titled "100 pull out of MLM scheme" and therein buried at the bottom is a reference to a Sin Chew Daily report which translates from Chinese to say Lee studied in Chung Wah for four months before his parents transferred him to a national school because they could not afford the fees.

Another RM1 mln cash was also donated to Chung Wah as Lee's token of commitment to education.

Investor Central. Asian insights for global investors. We ask the tough questions of Asian companies which global investors need answers to.

Question

1. Why can't this donation wait?

Does it really have to be made during the company’s quiet period?

Question

2. Why make this donation at all?

What Dato’ Lee does with his personal shareholdings is entirely his business.

Like every other shareholder, he has every right to choose what he wants to do with them.

But Matrix Concepts is a property developer which has also ventured into the education business through Matrix Global Education Sdn Bhd (formerly 1 Sendayan Education Sdn Bhd).

Matrix Concepts does not appear to have any links to Chung Wah. Matrix’s Ellesmere College affiliation established in March seems to be unrelated.

If Dato’ Lee donated another RM1 mln in cash to Chung Wah as a token of commitment to education, then what were the other RM15 mln worth of shares donated for?

Total number of questions in the full story: 5)

We have invited the company to an on-camera interview, and/or to reply to our questions in writing.

At the time of publication we have not received a reply (which is why you are seeing this message).

We will update this report if we do.

Legal notice

While our purpose is to ask the questions which the man on the street would ask, and to help the everyday investor make informed investments, please note that:

Our reports and presentations ('our contents') are not investment advice nor should they be construed as investment advice or any recommendation of any kind; nor meant to cast allegations or insinuations of any kind against any individuals or entities. Before acting on the material in our contents, you should either seek independent advice tailored to your particular circumstances and intentions or rely on your own judgement.

Our reports and presentations express our observations, opinions and theoretical analysis based on the facts that we have gathered or have been provided to us. While we endeavour to ensure that our contents are accurate and are presented in good faith, we cannot and do not warrant the accuracy, adequacy or completeness of the material or that the material is suitable for its intended use; and we disclaim any such warranties express or implied that may be presumed by any party; neither do we take responsibility for the views of companies or other stakeholders or observers or sources quoted or hyperlinked in our contents. While every precaution has been taken in the preparation of our contents, we (and our principals) shall not be liable for any losses or damage or inconveniences due allegedly to errors or omissions in any facts or due allegedly to reliance on our contents in any way whatsoever; nor for any damage to any computer hardware, date information or materials allegedly caused by our contents.

All expressions of opinion and observations in our contents are subject to change without notice and we do not undertake a duty to update and supplement our contents or the information contained herein in the event we obtain any further or more complete information.

©2014 Investor Central® - a service of Hong Bao Media