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Grand Banks Yachts
18-07-2012, 10:21 PM.
Post: #11
RE: Grand Banks Yachts
By today's (18Jul12) announcement, Grand Banks' latest situation on its still loss-making business operation seems to be turning around....
http://info.sgx.com/webcoranncatth.nsf/V...penelement

In fact, as a show of their confidence in the business and its expected recovery, Grand Banks' management has apparently given a corporate presentation, and the slides used have been released.....
http://info.sgx.com/webcoranncatth.nsf/V...penelement

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21-07-2012, 12:35 AM.
Post: #12
RE: Grand Banks Yachts
(18-07-2012, 10:21 PM)dydx Wrote: By today's (18Jul12) announcement, Grand Banks' latest situation on its still loss-making business operation seems to be turning around....
http://info.sgx.com/webcoranncatth.nsf/V...penelement

In fact, as a show of their confidence in the business and its expected recovery, Grand Banks' management has apparently given a corporate presentation, and the slides used have been released.....
http://info.sgx.com/webcoranncatth.nsf/V...penelement

To add on to what dydx has mentioned, there is also a one-page writeup on Grand Banks in this week's The Edge Singapore. I am reading it right now. Would suggest that those who are interested in this Company grab a copy to get more insights.

(Not Vested)
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/

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30-07-2012, 09:47 AM.
Post: #13
RE: Grand Banks Yachts
I must point out that Cheng Lim Kong has a long experience with shipbuilding and GBY must be something that he really loves, to the extent of acquiring shares even AFTER GBY was put on watchlist. This intention to remove all directors is not that surprising but if it does go through, I don't forsee a big issue as GBY has already secured orders on its order book and will likely return to profitability soon.

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19-08-2012, 08:42 AM.
Post: #14
RE: Grand Banks Yachts
In the latest update, http://info.sgx.com/webcorannc.nsf/Annou...endocument, it is interesting to note that Cheng Lim Kong and co have initiated a change in the Section under the Companies Act that require the convening of an EGM (from Section 177 to 176). GBY is currently seeking legal opinions on it, seems to me that convening one is unavoidable as the members can call for one if the directors don't! For your benefit, I have extracted the relevant Companies Act here.


Convening of extraordinary general meeting on requisition

176.
—(1) The directors of a company, notwithstanding anything in its articles, shall, on the requisition of members holding at the date of the deposit of the requisition not less than 10% of such of the paid-up capital as at the date of the deposit carries the right of voting at general meetings or, in the case of a company not having a share capital, of members representing not less than 10% of the total voting rights of all members having at that date a right to vote at general meetings, immediately proceed duly to convene an extraordinary general meeting of the company to be held as soon as practicable but in any case not later than 2 months after the receipt by the company of the requisition.

(1A) For the purposes of subsection (1), any of the company’s paid-up capital held as treasury shares shall be disregarded.
[21/2005]

(2) The requisition shall state the objects of the meeting and shall be signed by the requisitionists and deposited at the registered office of the company, and may consist of several documents in like form each signed by one or more requisitionists.

(3) If the directors do not within 21 days after the date of the deposit of the requisition proceed to convene a meeting the requisitionists, or any of them representing more than 50% of the total voting rights of all of them, may themselves, in the same manner as nearly as possible as that in which meetings are to be convened by directors convene a meeting, but any meeting so convened shall not be held after the expiration of 3 months from that date.

(4) Any reasonable expenses incurred by the requisitionists by reason of the failure of the directors to convene a meeting shall be paid to the requisitionists by the company, and any sum so paid shall be retained by the company out of any sums due or to become due from the company by way of fees or other remuneration in respect of their services to such of the directors as were in default.

(5) A meeting at which a special resolution is to be proposed shall be deemed not to be duly convened by the directors if they do not give such notice thereof as is required by this Act in the case of special resolutions.
[UK, 1948, s. 132; UK, Treasury Shares, Sch., para. 19; Aust., 1961, s. 137]


Calling of meetings

177.
—(1) Two or more members holding not less than 10% of the total number of issued shares of the company (excluding treasury shares) or, if the company has not a share capital, not less than 5% in number of the members of the company or such lesser number as is provided by the articles may call a meeting of the company.
[21/2005]

(2) A meeting of a company or of a class of members, other than a meeting for the passing of a special resolution, shall be called by notice in writing of not less than 14 days or such longer period as is provided in the articles.

(3) A meeting shall, notwithstanding that it is called by notice shorter than is required by subsection (2), be deemed to be duly called if it is so agreed —

(a)

in the case of a meeting called as the annual general meeting, by all the members entitled to attend and vote thereat; or


(b)

in the case of any other meeting, by a majority in number of the members having a right to attend and vote thereat, being a majority which together holds not less than 95% of the total voting rights of all the members having a right to vote at that meeting.
[21/2005]

(4) So far as the articles do not make other provision in that behalf notice of every meeting shall be served on every member having a right to attend and vote thereat in the manner in which notices are required to be served by Table A.

(5) [Deleted by Act 40 of 1989]


At the current market price of around $0.23, Mr Market is currently valuing GBY fairly given an almost equivalent amount of cash per share. Question: Will Mr Market believe that profitability is returning soon to GBY and accordingly revalue it upwards? Also interesting to note that the current Board of Directors is thinking of raising fresh capital, a move I suspect is thinly disguised as an attempt to stir up investor interest in the stock and raise market capitalization to get itself out of the SGX watchlist.

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19-08-2012, 10:09 AM. (This post was last modified: 19-08-2012, 03:04 PM by dydx.)
Post: #15
RE: Grand Banks Yachts
Having reviewed the latest FY12 full-year results, I guess there is now more than a fair chance that GB will have a profit turnaround in FY13. The BOD/management in their own words have said returning to profit and getting GB out of the Watchlist are their foremost goals; the latest order backlog is up smartly, and in fact in 4Q-FY12 GB had posted a profit - and a positive FCF (before capex) as well - if we added back the non-cash write-offs and provisions, which are mostly one-off.

Is Cheng Lim Kong able to add real value to GB? I really wonder! What I can see is that this man has something like a checkered record in his previous leadership role in Van Der Horst Energy (now renamed back as GKE Corp). I believe many people will ask - Has the man built a luxury yacht before? Does he have the necessary experience in selling luxury yachts like Grand Bank yachts? Has he ever owned a Grand Banks yacht?

I think it is silly to assume someone like Cheng - who is lucky to have bought a nice block of GB shares at a cheap price recently - to be able to do magic to Grand Banks' business, which obviously requires a lot of product and market knowledge, proven experience and passion, in order to do well.

Something is quite certain - When the mighty U.S. boat market picks up again, Grand Banks should stand a good chance to sell its boats in good-enough volume to make a decent profit. I guess we just have to watch for the results of the U.S. fall boat shows and Grand Banks' order book going forward.

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19-08-2012, 02:48 PM.
Post: #16
RE: Grand Banks Yachts
Cheng wasn't merely lucky to obtain the 9.7million shares at a cheap price. It was via a deliberate sales and purchase agreement with Wassbourne Finance. In that sense, Wassbourne Finance was probably supportive of Cheng's effort to remove the current Board, which explains the low price agreed between them in the transaction.

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19-08-2012, 03:29 PM.
Post: #17
RE: Grand Banks Yachts
(19-08-2012, 02:48 PM)psolhawk Wrote: Cheng wasn't merely lucky to obtain the 9.7million shares at a cheap price. It was via a deliberate sales and purchase agreement with Wassbourne Finance. In that sense, Wassbourne Finance was probably supportive of Cheng's effort to remove the current Board, which explains the low price agreed between them in the transaction.

I wouldn't just draw such a conclusion. The stated facts based on their official announcements remain that Wassbourne Finance sold their entire 11.99% block (or 11.523m shares) on 18Jul12 at undisclosed prices, and Cheng bought a 9.7% block (or 10.9m shares) on the same day at $0.10/share.

Who are the people behind Wassbourne Finance anyway? If indeed they are backing Cheng from behind, I guess most people would only consider them as a relevant factor if they are of good reputation and solid substance.

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26-08-2012, 02:12 PM.
Post: #18
RE: Grand Banks Yachts
I have noticed GB's share price has been creeping up in the last 3 market-days (22 - 24Aug) and closed at a new recent high of $0.275 last Friday (24Aug), supported by very decent volume, especially the 915 lots done on 24Aug. It appears some parties are accumulating. I wonder who?

Following the revised Special Notice (dated 10Aug12) by 2 shareholders Cheng Lim Kong and Kwah Yeow Khong - holding a combined 10.7m shares, or a combined 11.15% stake in GB - requesting for an EGM to remove 4 existing directors.....
http://info.sgx.com/webcoranncatth.nsf/V...penelement
, it appears that an eventual fight for control of the BOD and the company may be in the making. For the Cheng/Kwah camp (including other undisclosed shareholders) to challenge the controlling shareholder Livingston Family (holding a combined 28.72% as at 15Sep11) and associates in a shareholders' vote, they will definitely need more bullets.

For the Livingston Family (and associates) to defend their present management control, they may also need to have more bullets.

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31-08-2012, 03:24 PM.
Post: #19
RE: Grand Banks Yachts
http://info.sgx.com/webcoranncatth.nsf/V...penelement

Interesting.. The EGM will be held. 10 Oct, 10am. Will the incumbents prevail?

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17-09-2012, 06:31 PM.
Post: #20
RE: Grand Banks Yachts
I believe today's (17Sep12) announcement and press release on the placement of 19,223,250 new GB shares at $0.2725/share to Axa Ltd (a Tan Sri Lim Kok Thay's private family investment vehicle) and Mr. Koh Cheng Keong (Chairman and Managing Director of Malaysia’s Only World Group).....
http://info.sgx.com/webcoranncatth.nsf/V...penelement [announcement]
http://info.sgx.com/webcoranncatth.nsf/V...penelement [press release]
will make GB a very different stock counter and likely also a much stronger business and company over time. I think congratulations to the GB's BOD are in order.

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