TWO former senior employees of UOB Kay Hian Private Limited (UOBKH) were charged on Wednesday for allegedly lying to the Monetary Authority of Singapore (MAS) in relation to reports on a then Catalist aspirant. Lan Kang Ming, 38, and Wee Toon Lee, 34, each face three charges of providing MAS with false information in October 2018 in relation to due diligence reports on an unidentified company applying to list on the Catalist board of the Singapore Exchange. MAS said in a media statement on Wednesday that it was performing an onsite inspection of UOBKH between June and August 2018, to assess the latter's controls, policies and procedures in relation to its role as an issue manager for Initial Public Offering (IPOs). During the examination, Lan and Wee were said to have provided different versions of a due diligence report relating to background checks on a company applying to be listed on the Catalist board of the Singapore Exchange. UOBKH had acted as the issue manager
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Chairman donates 27.83% equity stake in the group
[6/13/12] – Yangzijiang Shipbuilding’s founding Chairman, Mr Ren Yuanlin, has donated US$750 mln worth of his stocks in the group to Yuanlin Charity Foundation which helps senior citizens in China.
According to a report in Irish Times, Mr Ren Yuanlin gave away 27.83% equity stake in the company in March this year.
The report quotes the Chairman saying, “in China there is the one-child policy. All the babies are much loved by their parents. But eventually society will become old and there will be a lot of problems because [each of] those one child children will have to look after two old people.”
This event is of significant importance to the shareholders of Yangzijiang Shipbuilding as it remains unclear if Mr. Ren will continue to serve as the Chairman and more importantly, when and how will the Yuanlin Charity Foundation monetise these shares?
The sale of these shares in open market will have a major impact on the stock price.
Also, the buyer(s) of this large equity will call the shots at the group.
Many investors would also question if this was the right time to make such a philanthropic decision, given the global economic scenario?
According to Wealth-X’s intelligence, the 27.83% stake is worth US$775 mln at S$1 per share.
This represents 89% of Mr. Ren Yuanlin’s entire wealth and after this donation his net worth falls to US$95 mln only, adds Wealth-X.
In 2011, Mr. Ren Yuanlin was ranked 84th in Forbes Billionaires list for China with US$1.1 bln net worth.
The Forbes website also says that he has applied for ‘Hong Kong abode’.
Investor Central. We ask the questions that need to be asked:
1. Mr. Ren Yuanlin has surprised everyone on the street by his philanthropy. More surprising is the secrecy about the deed which is a big development (might be biggest after the IPO) for the shareholders of the group. And this is the question haunting every mind, why weren’t the investors informed about this deed earlier? Why did it take a news report in Irish Times to reveal all?
2. Yuanlin Charity Foundation will certainly liquidate the equity investment as and when it needs. The bigger concern is the impact of any such move on the stock price and consequently, shareholders. Has Mr Ren signed any agreement to this effect?
3. Given that he has donated almost 90% of his equity stake in the group, will he still remain in charge of the business? Will he continue to serve as the Chairman of the group? Who will call the shots at the group now?
4. This raises a question that why did he not sell the investment to eligible investor(s) and then, donate the proceeds?
5. Was this the right time to make such a philanthropic decision, given the global economic scenario?
6. Did he not require any regulatory approval before taking such major decision?
7. The Forbes website says that Mr Ren has applied for ‘Hong Kong abode’. Is he planning for his retirement? Will he remain associated with the group?
8. How would Mr Ren justify his move to all those investors who bought shares in the IPO (in Singapore and Taiwan) only because of leadership qualities of Mr. Ren Yuanlin? What is the succession plan at Yangzijiang group?
We are sending these questions to the company to invite them for an on-camera interview, and/or seek their written response.
Key ratios:
Price-book: 1.4x
Yield: 5.45%
Cashflow: (RMB5.58 bln)
Total cash & equivalents: RMB3.15 bln
Major shareholder(s): Newyard Worldwide Holdings (26.06%), Lido Point Investments Ltd (10.27%), Hong Kong Hengyuan Investment Ltd (8.28%)
Management: Yangzijiang Shipbuilding was ranked 550th in the Governance & Transparency Index, with a score of 24 points.