Hii to discuss with Navis on ways to work together
Would there be a GO? No final decision has been made. With the entry of Navis as a major shareholder, I have to discuss with them on ways of working together.
If the level of our working relationship creates a pact and triggers a GO, then we are duty-bound to do so (make the GO).
I have met with Navis’ three founders and some of its key people, and I am amazed by their keen strategic thinking and eye for value creation and enhancement. Is privatisation a good option? If SEGI is looking at mergers and acquisitions and more capital expenditure in the near future, then privatisation may be a good route to take. Dividends would be low and shareholders might find it better to cash out if this were the case.
Of course, Navis has to be comfortable with taking this route. Why Navis? In fact, no fewer than five private equity funds have expressed interest in taking a stake in SEGI in the past one year. Most of them are global players.
But Navis understands the Malaysian scenario better than anyone else, because the company and its founders are based in Malaysia. They understand what makes the local market tick and that is probably why they moved faster to secure the equity participation. What can Navis do for SEGI? People say private equity funds are there to make a fast buck. They invest and divest in a few years. But Navis brings to the table a great deal of experience, expertise and networking.
They have made very strategic investments in the past and added incredible value to those companies.
As SEGI expands, it makes sense to work with people who are strong in systems, processes and other technical capabilities to ensure the continued growth and sustainability of the business.
I prefer active rather than passive investors.
What about your position as the largest shareholder?
My stake in SEGI remains. Some investors may come and go, but my team and I are passionate about our work and about education, and we are here to stay.
We are ready to go to our next level of growth. There must have been something sexy or attractive that Navis sees in us.