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Asiatic Group
05-05-2018, 02:32 PM,
Post: #11
RE: Asiatic Group
(05-05-2018, 08:22 AM)Asiatic Minorities Wrote: In the last five years, Asiatic's return on equity is less than 1%.  Profit for those years ranges from a mere $32,000 to $627,000, achieved after an injection of $28.7 million from new and existing shareholders.  Yet, the three directors, Tan Boon Kheng, Tan Boon Yew and Tan Boon Siang paid themselves nearly $1m yearly during the same period.  Also on the executive payroll are their father, uncle, cousins and spouse.  On the other hand, shareholders who gave $11.9m to the management in the 2013's rights issue, were paid a mere pittance dividend of  $0.0005 in 2014, $0.0005 in 2015 and none in 2016 and 2017.

In Mar 14, the company borrowed $4m from various people at an interest rate of 10% soon after raising more than $28 million in equity from investors, knowing fully that their return on equity is only less than 1%.  

Why should the Asiatic Group's management that had produced dismal financial results and displayed poor financial management be rewarded, let alone so richly....while outside passive minority investors who supported all the equity fund raising, lose more than 70% of their investment in the same company.

We, the OPMI, have to take a stand.  We have to demand our money back from the management!!!


opmi - thanks for pointing out...I made the correction.

Hi Activist Speaks good to hear from you again

I think you have described the problem yourself. The company is being hollowed out. That’s what OPMI is trying to say. There’s no cash left on the balance sheet to return shareholders unless you pushing for liquidation
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward

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05-05-2018, 05:07 PM,
Post: #12
RE: Asiatic Group
specuvestor.

As usual, without malice, you always satirically point out the painful obvious and guilelessly provide the solution.......

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05-05-2018, 06:10 PM, (This post was last modified: 05-05-2018, 06:33 PM by opmi.)
Post: #13
RE: Asiatic Group
1 LIM CHYE HUAT @ BOBBY LIM CHYE HUAT 186,000,000 14.04

2 BRIAN CHANG HOLDINGS (S) PTE LTD 176,435,544 13.32 - Yantai Raffles/Baker Tech.

are these 2 guys been supporting the management in AGM votings?

Liquidation require special resolution. 75% approval. Difficult.

Taking out Board Chairman and 1 Exec Director only need >50%.

Put in 0.025 cents special dividend (Co has $339k FD) as 1 of the resolution too. (got to give people reason to vote!)

Go via the Member's Resolution provided by Company Act to put resolution on AGM. 100 shareholders?

Circulation of members’ resolutions, etc.
183.—(1) Subject to this section, a company shall on the requisition of such number of members of the company as is specified in subsection (2) and, unless the company otherwise resolves, at the expense of the requisitionists —
(a) give to members of the company entitled to receive notice of the next annual general meeting notice of any resolution which may properly be moved and is intended to be moved at that meeting or (if the resolution is proposed to be passed by written means under section 184A) for which agreement is sought; and
(b) circulate to members entitled to have notice of any general meeting sent to them any statement of not more than 1,000 words with respect to the matter referred to in any proposed resolution or the business to be dealt with at that meeting.
[8/2003]
(2) The number of members necessary for a requisition under subsection (1) shall be —
(a) any number of members representing not less than 5% of the total voting rights of all the members having at the date of the requisition a right to vote at the meeting to which the requisition relates; or
(b) not less than 100 members holding shares in the company on which there has been paid up an average sum, per member, of not less than $500.
(3) Subject to subsection (3A), notice of a resolution referred to in subsection (1) shall be given, and any statement so referred to shall be circulated, to members of the company entitled to have notice of the meeting sent to them by serving on each member, in any manner permitted for service of the notice of the meeting, a copy of the resolution and statement.
[8/2003]
(3A) Where the resolution is proposed to be passed by written means under section 184A, the notice of the resolution and statement shall be given and circulated to members of the company entitled to have notice of the meeting sent to them by serving on each member —
(a) a copy of the resolution and statement; and
(b) a notification that formal agreement to the resolution is being sought under section 184A.

6 weeks Notice

(4) Subject to subsection (4A), a company shall not be bound under this section to give notice of any resolution or to circulate any statement unless —
(a) a copy of the requisition signed by the requisitionists, or 2 or more copies which between them contain the signatures of all the requisitionists, is deposited at the registered office of the company —
(i) in the case of a requisition requiring notice of a resolution, not less than 6 weeks before the meeting; and
(ii) in the case of any other requisition, not less than one week before the meeting; and
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster

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05-05-2018, 07:10 PM,
Post: #14
RE: Asiatic Group
opmi,

I read your post with great interest. What I learnt last year was when one backed one's conviction with facts and figures, outcome however unlikely, can sometimes materialize.

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06-05-2018, 09:26 PM,
Post: #15
RE: Asiatic Group
In the last few years, the executive directors, Mr Tan Boon Kheng and his brothers, Tan Boon Yew and Tan Boon Siang sold a total of 56.7 million shares. The controlling Tan family pared their interest in Asiatic Group from 51.08% in 2011 to the present 23.77%. The most recent sale done by Mr Tan Boon Kheng and Tan Boon Yew was 10 million and 20 million shares respectively at $0.04 in 2014. Today, Asiatic shares traded at $0.01. The executive directors have not bought a single share from the stock market despite having sold tens of millions of shares at prices 4 times higher than the present market price.

As a minority shareholder, it is worrying to see the executive directors, their family members and relatives draw an annual salary in excess of $1.5m and yet not a single person bought any Asiatic shares from the stock market all these years. What is more disturbing is they also do not express any interest in acquiring Asiatic shares despite the fact the shares is trading at a staggering 80% discount to its NAV. Ernst & Young, the company auditor, did not quality the asset values and is of the opinion all assets can be realised at the recorded value if disposed in an orderly fashion.

Asiatic shares has consistently traded at a steep discount. Orderly liquidation enables us to realise the value of shares at 4.3c immediately, compared to the realisation of value through potential future price appreciation, which may or may not materialise. The executive directors are handsomely paid. Judging from the executive directors' sale of shares and their reluctance to acquire the same shares at substantially lower prices, it is reasonable to assume the directors and their family members/relatives have no confidence in any future price appreciation. Why should the Asiatic's board of directors that shown little confidence in the company future be trusted with company management, let alone so unsatisfactorily.... while minority shareholders are expected to continue to bear with the huge capital losses in our investment. Let's demand for liquidation!!!

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08-05-2018, 06:27 PM,
Post: #16
RE: Asiatic Group
Dissenting minority shareholder moves to stir up Asiatic Group, says will issue open letter on May 9

By: Michelle Zhu
08/05/18, 05:40 pm

SINGAPORE (May 8): A year ago, Jerry Low Chin Yee made himself known among REIT watchers as the disgruntled unitholder who successfully organised and led a campaign to boot out the underperforming manager of Sabana REIT.

Now, the same person has set his sights on beating the drum for change in engineering management specialist Asiatic Group as the company’s minority shareholder.

In an open letter to the group’s board dated May 9, Low criticizes in detail the company’s management structure and stock performance, among others.

The letter was uploaded by Low to Facebook page he created on May 2 entitled Asiatic Group Minority Shareholders, in a PDF document entitled 8 REASON FOR A CHANGE, a day before the date set out in the letter. Prior to this, Low also published several extracts from his latest letter to the same Facebook page beginning from May 4.

As at May 8, 5.30pm, there are 13 other members in the group aside from Low.

“This open letter will be send (sic) to the board of directors of Asiatic on 9 May 2018. I worry about my investment in Asiatic Group and I want to see changes,” writes Low in his latest post accompanying the file upload on May 8.

Below is the full open letter containing Low’s views, which has been published ad verbatim:

More details in https://www.theedgesingapore.com/dissent...tter-may-9
Specuvestor: Asset - Business - Structure.

http://www.valuebuddies.com
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09-05-2018, 09:05 AM,
Post: #17
RE: Asiatic Group
OPEN LETTER TO ASIATIC BOARD OF DIRECTORS ON 9 MAY 2018.... appealing to the independent directors to help minority shareholders and protect the money we entrusted to the executive directors.

https://asiaticminorities.blogspot.sg/

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15-05-2018, 09:41 PM,
Post: #18
RE: Asiatic Group
The Board of Directors (the "Directors” or the "Board”) of Asiatic Group (Holdings) Limited (the "Company” and together with its subsidiaries, the "Group”) wishes to inform that it has received an open letter from a shareholder on 8 May 2018. The Board understands that the aforesaid open letter was also reproduced in an article published by The Edge Singapore on 8 May 2018. (link: https://www.theedgesingapore.com/dissent...tter-may-9).
As the Company is due to announce its full year unaudited results for the financial year ended 31 March 2018 on or before 30 May 2018, the Board will make an appropriate response to the open letter after the release of the full year unaudited results announcement.

By Order of the Board

Tan Boon Kheng Managing Director 15 May 2018

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16-05-2018, 06:50 PM,
Post: #19
RE: Asiatic Group
Asiatic Group (Holdings) Limited has been audited by Ernst & Young. In the 2017 statutory audit, the engagement partner was Mr Tan Po Hsiong, Jonathan. Prior to 2017, Mr Ng Boon Heng (Ernst & Young) was the Partner-in-charge.

As per 2017 accounts, Asiatic had $4.2m unquoted convertible bonds, convertible into Maju Intan Biomass Energy Sdn Bhd. The company also had a construction bill of $7.2m due from Maju Intan Biomass. In addition, Asiatic extended a $15.3m interest-free loan to Maju Intan Biomass. As at 2017, Maju Intan Biomass's equity was negative and its losses was $5.1m on a revenue of $5.3m.

Both Mr Tan Po Hsiong and Mr Ng Boon Heng did not see it necessary to qualify the convertible bonds, the construction bill nor the interest-free loan extended to Maju Intan Biomass. In fact, Mr Tan Po Hsiong did not even view these as key audit matters. I assume both Mr Tan and Mr Ng must have performed an impairment assessment on these balances and determined the recoverable amount approximated the stated balances in the Asiatic's accounts.

It is with this assurance from Ernst and Young that I propose the independent directors consider orderly liquidation of the Asiatic's power plant businesses as the executive directors have neither the expertise nor the will to run this business profitably. Orderly liquidation enables us to realise the value of Asiatic shares at 4.3c immediately, compared to the realisation of value through potential future price appreciation, which may or may not materialise.

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