Monday 19, December 2016 by Nabilah Annuar

Creating better value for minority shareholders in unlisted securities

Abdul Wahab Al Mutawa, Board Member and CEO of Al Mal Investment Company, speaks to Banker Middle East about the company’s latest product, Takharoj, and its unprecedented service in the region.

Can you describe Takharoj and how it works?

Takharoj is a product that we at Al Mal are very pleased to launch in the market as it is truly revolutionary and we believe, it will change people’s lives for the better. Put simply, Takharoj is an online platform that allows the voice of minority shareholders in unlisted securities to be heard and get more value from their minority shares in return. All that is required is that individuals need to submit their basic investment information in order for them to become part of a sizable shareholding block with the power to negotiate optimal outcomes. Then, through understanding of the shareholders objectives, Al-Mal’s team of experts will propose short-term and long-term solutions based on thorough analysis in order to maximise the value of the shareholding block.

What has encouraged Al Mal Investment to create Takharoj in the first place?

The creation of Takharoj came about as a proposed solution. We at Al Mal continuously conduct studies to analyse new market trends and needs after which we create innovative products that will satisfy their needs. This market study showed us that there is a large number of people who have minority shares in unlisted companies that are not able to make any business decisions, due to their small size and perceived value. For that reason, we have created a product to aid those minority shareholders by enabling them to have better value for their shares.

Can Takharoj offer solutions to minority shareholders that own any form of investment?

Absolutely. However, Takharoj will only deal with unlisted securities for the time being.

Can Al Mal Investment sell investments or act on behalf of minority shareholders without their consent?

At Al Mal, we cannot sell investments or act on behalf of minority shareholders without their explicit consent. Once the website accumulates a certain effective ownership block in the target company, Al Mal will then contact the shareholders to propose the best course of action to optimise the value of their shares. That being said, it is completely up to the shareholders to decide if they wish to be part of the proposed action plan.

How does Takharoj generate revenue? Are customers required to pay a registration fee?

We believe in a performance-based fee structure. That means that, where applicable, we will only take a percentage fee of the final transaction value once the solution is implemented. To answer your second question, no—customers can register for free on www.takharoj.com. To do so, they have to create an account and provide us with their basic personal information, investment details, and upload their shares certificates.

What can you tell us about the online security measures that would ensure the confidentiality of the users’ information?

We at Al Mal take security and confidentiality very seriously. We are bound by our confidentiality commitment as part of the terms and conditions and our internal controls. For that reason, none of the users registered on Takharoj’s platform can have access to other shareholders information even if they are part of the same block.

What has been the corporate strategy adopted by Al Mal Investment Company to ensure Takharoj’s success in the marketplace?

To ensure the success of Takharoj in the market, we began by educating and informing people about this platform with an aggressive launch campaign that encouraged people to go online and register their investment information. Luckily, people responded en masse, enabling Takharoj to take off in the extraordinary way it did.