Olam International

Do right issues require approval from shareholders ?

(16-12-2012, 10:41 PM)CityFarmer Wrote: There is an interview on Micheal Dee by The Edge Singapore in the latest weekly issue.

I found the interview with Michael Dee to be very refreshing - this is a guy who is concise, eloquent and he truly understands investing and its pitfalls. Like himself, I am also following the case of Olam from a purely "academic" point of view, to learn from it and to understand better how businesses are run (or shouldn't be run!).

I encourage all forumers to pick up a copy of The Edge Singapore if possible just to have a read on what he has to say.

(16-12-2012, 10:41 PM)CityFarmer Wrote: There is an interview on Micheal Dee by The Edge Singapore in the latest weekly issue.

I like the closing statement of the interview

"In any financial crisis, the first casualties are truth, trust and confidence. Our economic system ceases to function without them"

The next milestone for this saga is the confirmation whether the right issue need shareholder approval via EGM? I remember this remain a doubt to be cleared by management.

very wise statement.

subprime crisis essentially is a confidence crisis, not exactly financial crisis. financial crisis is the eventual result, confidence crisis is the initial symptom. If the confidence was restored in 2008, subprime could well be delayed in another few years.

of course, with the model of subprime, eventually, one day, confidence would be lost. A lot of hedge funds were shorting subprime mortgage in 2005 - 2007. Most were bust before subprime crisis emerged.

'The next milestone for this saga is the confirmation whether the right issue need shareholder approval via EGM? I remember this remain a doubt to be cleared by management.'



The BCD for this Right issue is on 02 Jan 2013.
Wonder Michael Dee knew what he was talking about ?

(16-12-2012, 11:29 PM)freedom Wrote:

(16-12-2012, 10:41 PM)CityFarmer Wrote: There is an interview on Micheal Dee by The Edge Singapore in the latest weekly issue.

I like the closing statement of the interview

"In any financial crisis, the first casualties are truth, trust and confidence. Our economic system ceases to function without them"

The next milestone for this saga is the confirmation whether the right issue need shareholder approval via EGM? I remember this remain a doubt to be cleared by management.

very wise statement.

subprime crisis essentially is a confidence crisis, not exactly financial crisis. financial crisis is the eventual result, confidence crisis is the initial symptom. If the confidence was restored in 2008, subprime could well be delayed in another few years.

of course, with the model of subprime, eventually, one day, confidence would be lost. A lot of hedge funds were shorting subprime mortgage in 2005 - 2007. Most were bust before subprime crisis emerged.

The global fiat currency system is based purely on the faith on the sovereign. "Faith" and "confidence" are more widespread in our heuristics or modern societies than we think.

(17-12-2012, 08:32 AM)Stocker Wrote: 'The next milestone for this saga is the confirmation whether the right issue need shareholder approval via EGM? I remember this remain a doubt to be cleared by management.'



The BCD for this Right issue is on 02 Jan 2013.
Wonder Michael Dee knew what he was talking about ?

First of all, the statement quoted is from me, not from Micheal Dee

Next, announcement of BCD does not mean no approval needed. If you notice the word "proposed" in the announcement, it means it is a proposal.

The same for dividend distribution, announcement and BCD first, before approval in AGM.

(17-12-2012, 10:30 AM)CityFarmer Wrote:

(17-12-2012, 08:32 AM)Stocker Wrote: 'The next milestone for this saga is the confirmation whether the right issue need shareholder approval via EGM? I remember this remain a doubt to be cleared by management.'



The BCD for this Right issue is on 02 Jan 2013.
Wonder Michael Dee knew what he was talking about ?

First of all, the statement quoted is from me, not from Micheal Dee

Next, announcement of BCD does not mean no approval needed. If you notice the word "proposed" in the announcement, it means it is a proposal.

The same for dividend distribution, announcement and BCD first, before approval in AGM.

So Olam will have to hold an EGM to get the mandate from shareholders ?

(17-12-2012, 10:51 AM)Stocker Wrote:

(17-12-2012, 10:30 AM)CityFarmer Wrote:

(17-12-2012, 08:32 AM)Stocker Wrote: 'The next milestone for this saga is the confirmation whether the right issue need shareholder approval via EGM? I remember this remain a doubt to be cleared by management.'



The BCD for this Right issue is on 02 Jan 2013.
Wonder Michael Dee knew what he was talking about ?

First of all, the statement quoted is from me, not from Micheal Dee

Next, announcement of BCD does not mean no approval needed. If you notice the word "proposed" in the announcement, it means it is a proposal.

The same for dividend distribution, announcement and BCD first, before approval in AGM.

So Olam will have to hold an EGM to get the mandate from shareholders ?

As stated in my previous posting. It remains as doubt for the management to confirm.

At the mean time, we should assume shareholder approval is pending IMO

SGX already granted them In Pri Approval. EGM within 10 working days must be a amazing task for the management.

(17-12-2012, 11:27 AM)valueinvestor Wrote: SGX already granted them In Pri Approval. EGM within 10 working days must be a amazing task for the management.

Olam management has the track record on amazing tasks

- 45 pages report to rebut MW 133 pages report in days
- 1.25 billion right issue proposal with underwriter over a weekend

So it is not so amazing if it get the EGM organized in 10 working days