MTR CORPORATION LIMITED
香港鐵路有限公司
MTRC (0066) and the FAM
We remind the board of MTRC that although they hold a blanket waiver of the Listing Rules on connected transactions, they cannot agree to amend the Fare Adjustment Mechanism if they expect it to reduce profits, because it would breach their fiduciary duty to minority shareholders. If the Government really wants to run the transport system and set fares, then they should nationalise it. (27-Mar-2013)
Government re-appoints MTRC chairman, extending term to 12.5 years
HK Government, 29-Oct-2012
Whatever happened to the 6-year rule for Government appointments? Before becoming Chairman in 2003, Mr Ch'ien was an "independent" director since 1998, elected by Government as majority shareholder. Then there is Allan Zeman Chairing Ocean Park (now in an 11-year term), and Anthony Wu Chairing the Hospital Authority (now in a 9-year term, and having been on the board since 1999).
MTR Director's Dodgy Degree
Choo-choo! From yesterday's story on Barrington University, we move down the track to unaccredited Kensington University, expelled from California and shut down by Hawaii, from which the MTR Operations Director has a degree in engineering. He is also an adjunct professor at a HK university! (27-Apr-2010)
Cooked auctions in HK
A Court of Appeal judgment overturns fraud convictions for bid-rigging for cooked food stalls at Tai Po Hui Market and makes clear that bid-rigging is perfectly legal. We call for the proposed competition law to make bid-rigging, price-fixing and other anti-competitive behaviour criminal offences. Civil tribunals won't cut it, not least because they cannot fine humans. In the meantime, the Government should include no-rigging warranties as a requirement for all tenders, so that they can prosecute for fraud. (8-Apr-2010)
MTR Exit
The Government's push to get the MTRC deal approved provided a 35% premium to the share price, or a HK$37bn gain in market value since the circular was posted. If they had offered to buy out the minorities at the current $25.60 price, we would have recommended acceptance. Most of the institutional investors have voted with their feet and sold out, leaving a low 25% voting turn-out at today's EGM. (9-Oct-2007)
MTRC: Time to Vote
We analyse the MTRC circular on the so-called "Rail Merger". We reaffirm our advice to independent shareholders to vote AGAINST the transaction. VOTE NOW - and don't assume that others will stop the deal for you. The Government will spare no effort trying to push this through. (11-Sep-2007)
Minister supported MTRC fare autonomy
The new Secretary for Financial Services and the Treasury, and hence a director of MTRC, Professor K.C. Chan, has stated his support for fare autonomy, something worth billions of dollars to MTRC shareholders, which the Government is now trying to take away for no payment in return. (31-Aug-2007)
Government digs MTRC hole
The Government has just given MTRC independent shareholders another reason to veto the KCR deal by proposing an extension of the fare freeze which would permanently wipe about 3% off future profit margins and HK$4.5bn off the value of MTRC. (17-May-2007)
Submission to Legco on Rail Merger Bill
In response to an invitation from the Legislative Council Bills Committee, Webb-site.com editor David Webb urges the Government to stop wasting scarce legislative resources and rethink the rail merger proposal and its transport policy in general. If the proposal is not amended, we will lead a campaign for 300,000 minority shareholders to protect value by voting it down. (25-Sep-2006)
Going Off the Rails
The proposed "merger" of MTR and KCR railways is in danger of derailment. It removes revenue upside from a potential market-based reform of transport policy and ensures a reducing profit margin, at a speed which depends on the future rate of inflation. This will not be acceptable to minority shareholders. The flaws result from the Government's socialist transport policy which means that there simply isn't enough revenue to go around. If that is the long-term transport plan, then they should just admit it and buy out MTRC minority shareholders. (11-Jun-2006)
Developers face critical shortage
In a startling development which is likely to have far-reaching implications for real estate development in Hong Kong, Webb-site.com has learned that the developer cartel has run out of a key commodity, without which, projects may no longer be marketable. (25-Feb-2005)
MTRC (0066): wholesale waiver of connected transaction Rules
Company announcement, 12-Jan-2005
Because it "has been a public sector transport provider". Its past status is irrelevant - it is now a listed company and hence in the private sector, and minority shareholders should have the usual rights to approve connected transactions under the Listing Rules.
State Securities Above the Law
In another Webb-site.com exclusive, five years after the market intervention, an investor with over HK$87bn of stocks has claimed exemption from the new law which protect investors in Hong Kong, which includes disclosure, insider dealing and market manipulation. The Government claim comes from a written response to questions we raised at the MTRC AGM. We look at the implications. (8-Jun-2003)
MTRC Voting Recommendations
The 12th AGM in Project Poll is on 15-May-03 and could involve 440,000 shareholders, hopefully not all in person. We urge shareowners to vote against the general issue mandate. (5-May-2003)
CCASS and the eIPO
With all the recent attention on the "eIPO" process in Hong Kong's MTRC offer, you might think we are on our way to a paperless market. Hong Kong's clearing monopoly, HKSCC, still has a long way to go, as Webb-site.com explains in the first of two articles. (2-Nov-2000)
You're no Boss
"Hello Boss" was the theme of the ad campaign for the MTRC IPO. Webb-site.com finds that far from making you the boss, this company has massive waivers from normal corporate governance rules on disclosure and connected transactions. You might as well hold non-voting shares in a blind trust. (8-Oct-2000)
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