SCMP Group Limited
南華早報集團有限公司
Scrap the public float rule
Investors in SCMP (0583) are in the deep freeze again, and other companies have indulged in artificial schemes to comply with the 25% public float rule. The rule should be scrapped, because as we explain, it has no real purpose, and because the only way to enforce it is to victimize minority shareholders by suspending their shares. The rule does not serve investor interests. (11-Jun-2013)
SCMP controller "sells" 14.4% to 3 banks, but grants put and gets call option at same price
Company announcement, 2-Mar-2009
Comment: after a year of stock suspension, SCMP's controller, Kerry group, has "sold" 14.4% to 3 banks, cutting its stake to 74.9%. But each bank has a 4-year put option to sell the shares back to Kerry, and Kerry has the option to trigger the put option, making it a call option too, all at the same price, adjusted for divdends plus a 1.1% p.a. fee. The banks keep the "sale" proceeds as collateral. This smoke-and-mirrors really does nothing to increase the float. The free-float rule is clearly obsolete and should just be scrapped. Investors have been deprived of trading opportunity for a year, for this?
The paid advert opposing the blackout rule
Click on "Orgs" or "People" below to get a list of signatories, scroll down, then click on their names to go to the signatory you are interested in. (29-Dec-2008)
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People
- Chan, Augustine Kwok Chuen (fka Chan Kwok Hung)
- Chan, Fut Yan
- Chau, Rosanna Mei Wah
- Cheung, Chi Kit (1966)
- Cheung, Edwin Hon Kit
- Chow, Louie Ki Shui
- Chuck, Winston Calptor
- Fung, Patrick Yuk Bun
- Fung, Tsun Pong
- Lai, David Tsan Tung
- Lam, Alvin Leslie Kwing Wai
- Lau, Stephen Sing Hung
- Lee, Hon Chiu (1962)
- Lee, Kit Wah
- Lee, William Tak Lun
- Li, David Kwok Po
- Lo, William Wing Yan
- Ma, Karl Chi Kong
- Tsang, David Kam Ching
- Tung, Chee Chen
- Yan, Loucia Ha Hung
Stop the Press
SCMP Group, publisher of the leading local English language paper, has admitted it has too much capital and is proposing a share buyback offer which its largest shareholder, Kerry Group, will not accept, thereby increasing its stake above the takeover threshold. Webb-site.com recommends independent shareholders to vote AGAINST the plan and instead urge the company to pay a special dividend. If Kerry wants full control, it should make a privatisation offer. (4-Sep-2002)
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