Digistar: Anything fishy about buying company with NA of RM89,271 for RM32.5million valuation?

This is not Digi, but on Digistar. I am going to highlight the sequence of event and perhaps you can piece them out as well.

Note the date where the JV was entered into - 12 October 2010

12 October 2010 - Seni Pujaan entered into a Joint Venture with Yayasan DMDI to undertake a property development.

28 April 2011 - Digistar Holdings Bhd subscribed for 150,000 shares of Seni Pujaan for RM150,000 cash. (See below)

28 March 2012 - Seni Pujaan managed to get a loan for RM28 million for development project on the piece of land from UOB Bank. Notice the word third party charge as the land is not owned by Seni Pujaan or Digistar but in fact owned by Yayasan DMDI. (See below)

16 & 19 Jul 2012 - In an announcement and its answer to Securities Commission, Digistar is paying RM13 million for remaining 40% of Seni Pujaan (Net Asset Value RM89,271), the same company it paid RM150,000 for 60% ownership a year ago.

Minority shareholders, you should have asked how come a company which has Net Asset Value of RM89,271 is being bought for RM13 million, 40% stake - hence valuing the company at RM32.5 million. Add on to that, the 60% was for RM150,000 and that was just a year ago.

This deal does not need shareholder's or SC's approval as it is an all cash deal. (See below)

Enough said. Minority Shareholder Watchdog Group - can you help to check on this? I am thinking how can a company with Net Asset Value of RM89,271 and no track record be valued at RM32.5 million...

Don't you think the minorities deserve a better answer?

As I am highlighting this, need to be careful as well.