SGX welcomes new CEO

Magnus Bocker is replacing Hsieh Fu Hua as chief executive officer of the Singapore Exchange (SGX), the company announced last night.

His profile highlights his fantastic track record in business development ie. putting together small bourses and finally selling the consolidated entity to a big boy. This is in addition to the fact he took his wife's name. (I cannot understand the need for that.)

Anyway back to my intention of this blog piece.. I would like to raise the question as to his competence in the area of control, maintenance, supervisory roles of a stock exchange.

We certainly need a SGX that would play an even hand to its shareholders and yet market friendly to the listed companies and big and small investors (hopefully not always in this order of preference).

Mr Goodyear, gone So soon?

I just read that Singapore's Temasek Holdings Mr Charles (Chip) Goodyear, the CEO designate, has decided not to become the chief executive of the state investment firm. Reason? Due to differences on certain strategic issues that could not be resolved.

Mr Goodyear had been appointed a member of the Temasek board on February 1, 2009 and CEO-designate, a month later. He resigned on July 21, 2009.

Too short a burn-in period for the candidate to adapt to the economic and political culture and structure of Singapore? Well isn't the candidate supposed to have been selected after an extensive and intensive search for such a high profile and important position ie. managing the wealth of a nation earned with blood and sweat over two or three generations? Or perhaps the portfolio that is supposed to be taken over way too "complex" to digest ie. handover?

Whatever it is - All the bests to you, Mr Goodyear. Perhaps it is just not meant to be.

C K Tang - The Valuation Report

ion's valuation - the minority hope to have?

A group of 10 shareholders of CK Tang signed, sealed and delivered a petition to the Singapore Exchange and the Ministry of Finance to protect the interest of the minority shareholders against 89%-majority Tang family's plans to take the company private.

Their main grievance - They are claiming that the flagship 5-storey store (I think, including the basement), which is part of a huge hotel that C K Tang (the listed company) does not own, has been undervalued because the company has not taken redevelopment potential into account.

There are many ways to value an asset. Thus I would be very interested to know how was the valuation done.

How to satisfy the minority shareholders? Based on what I read in the papers today, there are two options.
* Justify your current offer of 83 cents with a vigorously and comprehensively analysed valuation report done by completely independent and competent property professionals, free from any undue influence or opinion from C K Tang's management OR;
* make an offer that at least matches CK Tang's net tangible assets of 93 cents per share as per financial statements dated March 31, 2009 - 10 cents higher than the current offer price of 83 cents.

Will the minority get their report or their money?

P/S - I got no C K Tang shares.