What is the deal now?
On Mar 3, 2007, Pacific Century Regional Developments was reported to have sold its 47.06% stake in PCI, its Hong Kong-listed insurance arm for HK$3.14 billion to Fortis Insurance International.
What is Edgar not sure of?
Back in Nov 2006, PCRD's shareholders were asked to approve the sale of 22.64% stake in PCCW for HK$9.2 billion. That deal was rejected by the minority shareholders.
He is said to be selling off his "unloved" assets in PCRD. So far, we note that he doesn't like telecom and insurance businesses.
What other "unloved" assets will he sell?
What is his "loved" assets anyway?
What is the true value of PCRD?
Can someone do the sums please?
Or is he the Richard Gere's movie character in Pretty Woman, where he buys company and strips it apart and sells them in pieces for a profit?
The biggest winner of the deal is Mr Li himself, of course. But he would have to share the fruits with the minority shareholders of PCRD, right?
Congratulations to Mr Li.
P/S - I still got no position in PCRD.
3 comments:
According to Goh Eng Yeow's calculation, PCCW and PCI alone would give you a value of 65cts per share.
Closing price as of Mar 14, 2007 is 36.5cts.
So got chance or not?
Hi Edgar,
Minority shareholders means shareholders who hold few shares, right...and not that they belong to the minority group. It seems that many coy are very eager to please their minority shareholders .. in fact more so than their majority shareholders...which appears to me that Minority shareholders have got very powerful voice despite their small shareholding..that got me quite confused...could you advice??
Hi,
Thanks for comment.
Well, we are observing increasing shareholders' activism being displayed, particularly during AGMs.
Perhaps due to better awareness of their rights and some with more time in their hand to follow closely on the respective company's activities.
But are minority shareholders majority of the battles with majority shareholders? The odds are getting better but still relatively insignificant in my humble opinion.
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