ITC Corp (0372)

[soros]

opmi

I think majority of Hong Kong listed company directors don't support the concept of "unlocking of value." Such a concept would mean managing the disposal of company's assets for benefits to public shareholders. That does not happen much and many companies do not pay dividend even after reporting profit for a number of years.

Most HK chinese directors never went to business schools and since being paid directors fees by the company , consider their only loyalty is to the company which pays them . Loyalty of Company Directors to the company's public shareholders is a totally alien idea.

I don't see "taking control" as a catalyst to unlocking of share value but I believe Dr Chan may want the company to payout more dividend to return him the original $200 Mil capital which was his "loan capital" to company , converted into ITC shares at $0.30 per share.

But ITC still has a 21% stake in Burcon Nutriscience ( Canada) and not really rewarding and company may be wanting to exit. Trading on US market, Burcon shares were reported having higher turnover yesterday ( 27th May ) .

http://www.nasdaq.com/article/burcon-nut...e-cm480925

[opmi]

I don't see "taking control" as a catalyst to unlocking of share value but I believe Dr Chan may want the company to payout more dividend to return him the original $200 Mil capital which was his "loan capital" to company , converted into ITC shares at $0.30 per share.

But ITC still has a 21% stake in Burcon Nutriscience ( Canada) and not really rewarding and company may be wanting to exit. Trading on US market, Burcon shares were reported having higher turnover yesterday ( 27th May ) .

http://www.nasdaq.com/article/burcon-nut...e-cm480925

If 'Shell King want to recover the loan capital', what about the money he used to pay for 15% shares recently? Even more dividends to pay?

Burcon is a R&D and patents holding company. Only 1 protein is in commercial production by ADM. Most likely buyer for Burcon is ADM.

[soros]

I am or was only a public minority shareholder and not close enough to the company to know what shell king really thinks or wants. So please don't rely my comments for your decision making. But I think its quite possible a higher dividend may be announced soon.

Annual result for last year ( to 3/2014 ) EPS = 9.5 cents and annual DIV Paid = 7 cents.

Interim result for this year ( to 9/2014 ) EPS = 15 cents and interim DIV Paid = 4 cents.

So the current 6 months interim result has reported earnings higher than the 12 months earnings for last year. Next results are due soon.

[soros]

opmi,

ITC (O372.HK) was up closing at $1.05 . I wonder if it is in anticipation of closing of mandatory offer today.?

Rosedale Hotel ( 1189.HK) made a placing of 131 Mil shares at $0.80 on 27 May ( supposed to be a discount of 27% to market price. and proceeds will be applied for general working capital ).

The year end accounts to 31/12/2014 shows the cash assets at $1.27 Bil. ( = $1.93 per share ).

Why issue new shares priced at $0.80 when the cash backing is $1.93 ???

What do you make of this ?.

[opmi]

opmi,

ITC (O372.HK) was up closing at $1.05 . I wonder if it is in anticipation of closing of mandatory offer today.?

Rosedale Hotel ( 1189.HK) made a placing of 131 Mil shares at $0.80 on 27 May ( supposed to be a discount of 27% to market price. and proceeds will be applied for general working capital ).

The year end accounts to 31/12/2014 shows the cash assets at $1.27 Bil. ( = $1.93 per share ).

Why issue new shares priced at $0.80 when the cash backing is $1.93 ???

What do you make of this ?.

Isn't it funnier than biggest Rosedale shareholder, Hanny paid ITCC $3 cash for big Rosedale stake, yet allowed itself to be diluted at such a low price! 嫌钱腥！

Likely the cash in Rosedale may be used to buy some assets somewhere. Unlikely Rosedale minority would get any cash from the cash pile.l.

Above are guesses only.

[soros]

That's a very interesting point you have made.

"Hanny (0275.HK) paying $3 per Rosedale ( 1189.HK) share and struggling with a 6 for 1 rights issue to raise funds of double its market capitalisation from its shareholders whilst as major shareholder in and allowing Rosedale to alot new shares at $0.80.

Its pretty senseless company mis-management ! Who benefits ?

[opmi]

http://hkm.appledaily.com/detail.php?gui...e=20150603

Rosedale article on Apple Daily HK
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錢雋

細價股專家

[soros]

The latest announced by aastocks website on 27 Jan 2017 :

ITC CORPORATION (00372.HK) 0.000 (0.000%) announced that chairman and controlling shareholder Chan Kwok Keung, Charles fully transferred 67.96% shareholding of the company involving 1.147 billion shares at an aggregate consideration of $596 million to an independent third party Suen Cho Hung, Paul. Upon completion, Suen should make a mandatory general offer at an offer price of $0.52 per share, involving $281 million.

[opmi]

ITC Corp's crown jewel ITC Properties was distributed to ITC Corp shareholders recently. Removing the double discount on NAV.

ITC Group been seeing a lot of corp moves since 2011. Asset disposals, Div-in-Specie (DIS), Special Dividends, Share buybacks.

From 2012, ITC Corp paid about 25 cents in total, with scrip dividend option. It was about 30 cents in 2012. Shell King sold at 52 cents, post DIS. So the effective price is about $1.

http://www.hkex.com.hk/eng/invest/compan...langcode=e

Most people would not invest in ITC Corp coz of the Shell King reputation.

[soros]

I think Shell King did very well for himself and for anyone who followed him. I remember he converted $200 Mil loan note to ITC into ord shares at 30 cents per share in 2012 ( = 666.66 Mil shares ) .

The subsequent ITC record of paying dividends was excellent :
2011 - 2 cents
2012 - 4 cents
2013 - 4 cents
2014 - 7 cents
2015 - 8 cents
2016 - 5 cents
Nov 2016 : Special distribution bonus offer of 9 shares in ITC Properties ( 00199.HK ) for every 50 shares in ITC ( 00372.HK )
( distributing in value $0.59 compared to closing price of $0.68 per ITC share at 30 Sept 2016. )

27 Jan 2017 : Shell King sold off his entire holding of ITC shares at $0.52 .

Summary : For those shares costing 30 cents in 2012 , he has collected 28 cents in dividend and so got back almost the entire cost ( just 2 cents short ).

He gained $0.59 in value from the distribution of ITC Prop shares and a further $0.52 cash from exit sale of ITC shares = $1.11 total per share ( which I reckon cost him only 2 cents if you deduct the dividends from the original 30 cents paid ).

This is actually a brilliant result for Shell King and I have some slight regret I did not stay the course with ITC (I sold earlier at around 72 cents to chase another share ) .