KUALA LUMPUR, Aug 19 — Matrix Concepts Holdings Berhad’s CEO Dato’ Lee Tian Hock is donating 5 million 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 per cent stake.

The 5 million shares represent about 1 per cent of the company, and are worth around RM16 million.

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 million cash was also donated to Chung Wah as Lee’s token of commitment to education.

Investor Central. We keep your investments honest.

1. Why can’t this donation wait?

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

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 million in cash to Chung Wah as a token of commitment to education, then what were the other RM15 million worth of shares donated for?

3. Who ultimately gets Lee’s shares?

While the announcement states Dato’ Lee is donating his shares to the school, will they be held in a trust account?

Or administered by anyone in particular?

4. What will the recipient do with these shares?

What will Chung Wah do with them?

Sell them for cash?

If this is the case, why did Dato’ Lee not just sell the shares and make a cash donation?

We found an announcement on the school’s web site, which says that the shares will be kept to earn dividends which will be used to fund teacher training.

Still, we have our questions and the school’s direct response would be helpful to avoid anything lost in translation.

5. How did Chung Wah inculcate such a sense of gratitude in Dato’ Lee, within the four short months he attended the school?

The Sin Chew Daily report translated and carried by The Star Online explains Lee was in Chung Wah briefly for four months before being transferred to a public school where the fees are more affordable to his parents.

So Lee does have a relationship, albeit a short one.

But with just four months being at Chung Wah, is that enough to warrant this sizeable donation?

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. — Investor Central

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