Minority shareholders 'punished' again.......zero dividend
A few years ago, The Edge did a good write up on the company.....
Kingboard was doing biz with a sister company and charging below market price for the job( one way of shifting profits from one company to another....In investment, you need to be careful with interest party transactions and need to know which company is the Gem of the significant shareholder. They can play around with the results). So Pope Asset Management who owns a sizeable share in kingboard convene a EGM which decides to drop the biz with the sister company. I think Pope tries to force the hand of the mgmt. to be fair to Kingboard shareholders.
But mgmt. decides to 'tender out' the properties, plant and machinery of Kingboard in order to earn an income......so kingboard's earnings drop and I guess the sister company could carry on their biz with Harvest Resource Management Limited, an 'independent party' which won the tender.
independent party with a hypen...
So now kingboard decides not to pay dividend....'punishment' for misbehaving?????
Correct me if my infor is inaccurate because they are based on my memories.....
This is what I think is happening in swing media right now....company is leasing equip to other parties(related???)......and company has to issue rights and placements each year to buy equip and keep the biz going. So swing media is subsidising other companies?????
FY2013
http://infopub.sgx.com/FileOpen/Kingboa ... eID=276280Extension of The Licensing of Manufacturing Facilties
http://infopub.sgx.com/FileOpen/LICENSI ... eID=254576