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03-04-2021, 01:35 PM
Something interesting to add:
Master Glory, through a network of subsidiaries, owned 19% of GBA Dynamic, formerly Rosedale Hotels. GBA Dynamic, also run by Dr Yap and his friends, began an inexplicable decade long trend of selling profitable hotels and building up a huge cash pile. Before it was suspended two days ago, GBA Dynamic stock had a market cap of a 150 million, it had cash/bank balances minus liabilities of 1.7 billion. So Master Glory's stake in GBA Dynamic was worth about 340 million.
But just before Master Glory went bankrupt the entire stake ended up in the hands of one Mr Lai Tsz Wah, long time director of GBA Dynamic and current managing director after he replaced Dr Yap. A statement by Master Glory's liquidator says Master Glory told them (and he accepted this claim) that Master Glory's broker initiated a forced sale of their stake in GBA Dynamic to an unknown buyer for an unspecified price to cover a margin call.
This is likely bs, they did not want the liquidator gaining control of GBA Dynamic and releasing its huge cash pile. They want to keep its cash within themselves and their circle of friends. I do not know how the liquidator was so incompetent that he did not even check who acquired the stake, something he could do in seconds on HKSE's website as significant stakes in public companies must be reported. But the net effect is that Mr Lai, Dr Yap and their circle of cronies have screwed Master Glory's and GBA Dynamic's minority shareholders with their shady dealing.
Master Glory, through a network of subsidiaries, owned 19% of GBA Dynamic, formerly Rosedale Hotels. GBA Dynamic, also run by Dr Yap and his friends, began an inexplicable decade long trend of selling profitable hotels and building up a huge cash pile. Before it was suspended two days ago, GBA Dynamic stock had a market cap of a 150 million, it had cash/bank balances minus liabilities of 1.7 billion. So Master Glory's stake in GBA Dynamic was worth about 340 million.
But just before Master Glory went bankrupt the entire stake ended up in the hands of one Mr Lai Tsz Wah, long time director of GBA Dynamic and current managing director after he replaced Dr Yap. A statement by Master Glory's liquidator says Master Glory told them (and he accepted this claim) that Master Glory's broker initiated a forced sale of their stake in GBA Dynamic to an unknown buyer for an unspecified price to cover a margin call.
This is likely bs, they did not want the liquidator gaining control of GBA Dynamic and releasing its huge cash pile. They want to keep its cash within themselves and their circle of friends. I do not know how the liquidator was so incompetent that he did not even check who acquired the stake, something he could do in seconds on HKSE's website as significant stakes in public companies must be reported. But the net effect is that Mr Lai, Dr Yap and their circle of cronies have screwed Master Glory's and GBA Dynamic's minority shareholders with their shady dealing.