Did Halim Saad consent to the 2001 UEM and Renong takeover?

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Halim Saad Consented to the 2001 UEM and Renong Takeover

The Malaysian government, along with former Prime Minister Tun Dr Mahathir Mohamad and former Finance Minister II Tan Sri Nor Mohamed Yakcop, has asserted that Tan Sri Halim Saad consented to the 2001 takeover of his shareholding in United Engineers Malaysia Bhd (UEM) and Renong Berhad. This consent was reportedly acknowledged through a letter from Halim to Khazanah Nasional Berhad (Khazanah) dated May 13, 2003. Following this acknowledgment, Khazanah compensated Halim with a total of RM165 million, disbursed in two tranches: RM45 million on May 22, 2003, and RM120 million on May 26, 2003.
Government's Defence Against Forced Takeover Allegations

In their statement of defence, the government and the former ministers explicitly denied the claim of a forced takeover. They stated that Halim's approval was secured, evidenced by his communication with Khazanah. This position counters Halim's assertion that he was instructed to divest his shareholding and relinquish control of Renong and UEM to the government. The defendants maintain that the transaction was consensual and that Halim received substantial compensation for his stake.
Financial Context of Renong and UEM

The Renong-UEM group of companies was a significant component of the Kuala Lumpur Composite Index. The defence highlighted that during Halim's management, the market capitalisation of the Renong Group saw a substantial decline of 41%, falling from RM7.2 billion in 1997 to RM4.2 billion by 2000. Furthermore, at the height of the Asian Financial Crisis in 1997/1998, Renong carried a debt of RM26 billion, which represented 7% of Malaysia's entire banking system.
Proposed Restructuring and Halim's Alleged Instructions

According to the defence statement, a restructuring of Renong and UEM was proposed by Nor Mohamed Yakcop and agreed upon by Dr Mahathir as a means to rectify the financial situation. The proposed method involved privatising UEM through a general offer to all its shareholders. Halim, who held controlling shares in Renong and a 37.92% stake in UEM, was essential for this takeover to proceed. However, Halim's statement of claim alleges that he was directed by Dr Mahathir and Nor Mohamed not to proceed with his own general offer to privatise UEM, and instead was instructed to divest his holdings.

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Did Halim Saad consent to the 2001 UEM and Renong takeover?

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