☕️ Grab shareholding revealed - founder Anthony Tan's heavily diluted, low single digit ownership yet insane control over the company

Malaysians invested >RM1 billion in cryptocurrencies with Luno. Europe's most valuable company - LVMH. WHO warned that the Covid-19 pandemic is 'growing exponentially'

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1. MARKET SUMMARY


2. NUMBERS AT A GLANCE

44% — the passing rate of CFA’s first ever Level 1 Computer Exams.

EUR308 billion - equivalent to USD368 billion, the market cap of LVMH, the luxury goods conglomerate and owner of brands like Louis Vuitton and Dior, making it the most valuable company in Europe. Its owner, Bernard Arnault is amongst the 8 centibillionaires, with a net worth of USD135 billion.

USD107 billion — the worth of the chocolate retail industry in 2020. However, Ghana which is the world’s second largest cocoa producer earned just around USD 2 billion.


3. COVID-19 SUMMARY


4. IN MALAYSIA 🇲🇾

  1. Telekom Malaysia Bhd (TM) is one of the best companies to work for in Asia in 2020 according to HR Asia Awards due to its outstanding efforts in taking care of its employees. TM has been at the forefront in protecting the safety and ensuring the wellbeing of its employees throughout the pandemic.

  2. One of the only three licensed digital asset exchange (DAX), Luno Malaysia Sdn Bhd reports RM1 billion digital assets under management less than two years since the company relaunched in Malaysia in 2019. The exchange has also surpassed half a million users — 588,994 total number of users.

  3. Local think tank Institute for Democracy and Economic Affairs (IDEAS) is raising concerns over Prime Minister Tan Sri Muhyiddin Yassin’s recent statement that the government is lacking funds after announcing various stimulus packages and the increased RM600 billion budget. IDEAS commented the PM’s comments misrepresent how the country finance its various fiscal responses to the pandemic, painting an unfavourable picture to potential foreign investors.

  4. Lead prosecutor Datuk V Sithambaram ripped apart DS Najib Razak’s appeal to overturn his 12 year jail sentence and RM210 million fine in front of three judges today. The senior counsel explained how all the evidence pointed Najib’s appeal could not hide the overwhelming evidence on how the former prime minister used SRC as his personal piggy bank or automated teller machine (ATM) by dictating everything.

  5. Senior Minister (Security) Datuk Seri Ismail Sabri Yaakob has announced that beginning yesterday the Health Ministry has authorised mayors, local council presidents and local council enforcement authorities to compound those who do not comply with the standard operating procedure (SOP) at Ramadan bazaars.

  6. Maybank has issued a new scam alert to warn customers of phishing activities by scammers to steal banking information. If you have an account with Maybank, please be mindful!

  7. Johor’s State police chief Datuk Ayob Khan Mydin Pitchay said investigations have uncovered a senior officer and three policemen’s ploy to extort RM1,500 from a furniture factory manager. The four cops have since been nabbed.


5. AROUND THE WORLD 🌎

  1. More insights on Grab’s shareholding following its plan to list via the SPAC merger route. 

    Co-founders Anthony Tan and Tan Hooi Ling and Grab President Ming Maa prior to this merger owned only 3.8% of the company. Post listing and after the dilution, their ownership comes down to 2.2%. Weirdly, Hooi Ling and Ming Maa’s shares after the listing seems to be owned by Anthony Tan, leaving them with nothing as per the disclosure below. Anyone can explain this? (Please reply to this email. We owe you a ZUS Coffee if you do indeed have the answer).

    Softbank is the single largest shareholder, no surprise. What’s insane about this shareholding is the level of voting power Anthony has. Despite being the founder and only owning a meagre 2.2% of the total shares, he has a voting power of 60.4% essentially having full control of the company. 1 Class B share of his gives him 45 votes. Why would the other shareholders have agreed to such a disproportionate amount of control compared to ownership?

  2. Bernie Madoff, the Wall Street investment manager that ran amongst the largest Ponzhi scheme, if not the largest, has died at 82 ‘believed to be from natural causes’ in prison where he was serving a 150-year term. Despite the various red flags, his USD65 bil Ponzi scheme continued running for at least 15 years and was exposed in 2008 when the global financial crisis brought down the house of cards.

    The embarrassment was too great for his family to the extent that his oldest of two sons, Mark Madoff, committed suicide on the 2nd anniversary of his father’s arrest and his wife, Ruth Madoff stopped communicating with him. A short and interesting read on this entire saga here.

  3. Ant Financial having to shelve its USD35 bil IPO and Alibaba’s recent USD2.75 billion antitrust penalty in China sends a message who is the real ‘taikor’ in China - the Chinese Communist Party. Not tech billionaires. 34 firms were summoned to a meeting on Tuesday by China’s antitrust watchdog, the State Administration For Market Regulation (SAMR), ordering them to rectify their excesses within 1 month to conduct internal reviews and comply with government guidelines. Meituan, ByteDance. JD.com, Pinduoduo, Baidu, and Sina Weibo were among the tech giants that issued pledges to obey antitrust laws.

  4. Bitcoin hit a new all-time high of more than USD64,000 on Wednesday, the very same day Coinbase will be making its public debut. With its current market cap of USD1.18 tril, Bitcoin’s record speed to hit the trillion dollar mark took 12 years which is 2x faster than Amazon and 3x faster than Apple according to Coinmarketcap.com.

  5. 16 months in and the Covid-19 pandemic shows no sign of slowing down. The World Health Organization warned that the trajectory of the pandemic is now ‘growing exponentially’ with more than 4.4 mil new Covid-19 cases reported in the past week. Confirmed cases climbed 9% across the world last week - the 7th consecutive weekly increase and deaths increased by 5%. New variants such as the South African and UK variants are rendering existing vaccines less effective. 

    “This is not the situation we want to be in 16 months into a pandemic where we have proven control measures. It is the time right now where everyone has to take stock and have a reality check of what we need to be doing,” she said during a press briefing. Vaccines and vaccinations are coming online, but they aren’t here yet in every part of the world.”

    - Maria Van Kerkhove, WHO Technical Lead for Covid-19

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