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(14-01-2011, 05:20 PM)d.o.g. Wrote: Most of the value stems from the 4% stake in UOB. Full value will never be realized since Wee Cho Yaw needs it to keep control of UOB. Using multiple pyramid structures allows Wee Cho Yaw to minimize the capital locked up while still keeping control of his empire.
Try building a web of the Wee empire and the respective shareholdings. It's quite enlightening, and you can quickly see what the key companies are.
Okay, this is coming a little late, but thanks for pointing that out.
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Ever since the original post, I have largely left the Wee empire on the back burner, after finding out their cross-shareholdings and the web that the family has built to keep their companies under influence.
Along the way, I also found a few companies that had similar structures: the Wing Tai companies (Wing Tai Holdings [SGX], Wing Tai Properties [HKSE] and Wing Tai Malaysia [Bursa]), Far East (Orchard Parade Holdings, Yeo Hiap Seng), Kuok Group (Malaysia, Kerry [HK], Allgreen [SG]). They might have more under their web of influence; I just didn't go to the trouble of uncovering them. I was actually looking at some property counters when I found out about these.
Personally, I would prefer to avoid such companies, where the majority shareholder is using the company to manage his own wealth. There are just too many incentives for the key owner-managers to settle for a surer 10% ROE rather than working harder for a riskier 20% ROE.
It's a subjective point, but worth considering, even if you draw different conclusions. Anyone actually found any plus points of such empires?