Hi Toprated,I believe that if shareholders vote FOR the proposed...

Hi Toprated,

I believe that if shareholders vote FOR the proposed transaction, it will effectively rule out the Sembawang proposal.

I'm obviously not sure what will happen with the SP but I read it this way:

If the deal is done with LEI, MAH is left with its problem construction projects (for which it has admitted potential additional liabilities) as LEI got to cherry-pick the projects it wanted. Its also probable that the construction staff left at MAH will be disgruntled (I know I wouldn't be happy if all my construction mates sailed off to Leightons while I was left at MAH to work on finishing a problem project, especially as when I complete the project, my job is probably gone).

If instead MAH do the deal with Sembawang, Sembawang will pay more money then LEI AND take over all construction projects (includung those flagged by MAH as problem ones).

So from where I sit, I would think the MAH SP has a better chance of rising if the LEI proposal is voted down.

I admit that I had not heard of Sembawang until last month, and I did find its initial approaches unprofessional, however its recent announcements and open letters seem straightforward and reliable.

Apart from LEI, I think all other MAH shareholders would be better off if the MAH Board either:
- went with the Sembawang proposal; or
- negotiated a better arrangement with LEI.

For either of these outcomes, MAH shareholders would need to vote AGAINST the LEI proposal next week.

Just my 2c (well maybe 3c).