Kingboard Copper - Special Situation

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06 Nov 2016 11:19 #23356 by lotustpsll
2 recent notable/positive developments.

- EY report, released in October, has affirmed that the findings of the Bermuda Court on “the Harvest License Transaction” are consistent from its own findings. The company is currently appealing on these Court findings.
- Kingboard Copper (KC) is calling for a SGM to approve a number of recommendations on proposed amendments to the Memorandum of Association and also adoption of a Share Buyback mandate.

My views :-
- EY report is hugely negative for KC and its appeal against the Bermuda Court decisions. Appeal will be heard in March 2017.
- Proposed Share Buyback is expected given the current huge discount of about 60% of current share price (0.25) to its NAV per share. If the end game is to buyout Minorities (assuming its appeal will fail), KC might as well start mopping up the shares before the hearing date. I do not rule out that KC may withdraw its appeal.
- The Petitioner should consider, during the appeal hearing, to challenge the company/majority shareholder for the delay in implementing the Court decisions on the ground that the appeal is an “abuse of the Court process“ as evidenced by the EY report. As such, a penalty should be imposed by the Court against the company/majority shareholders and that the Minority shareholders should be compensated accordingly.

Please do your own due diligence before you invest. Am vested.

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19 Nov 2016 11:25 #23372 by lotustpsll
Kingboard Laminates (KL)
Business Review – Interim Report 1H16
“The demand-supply dynamics of the laminates market have evidently improved after years of intense competition. At the onset of the second half of 2016, the prices of laminate-related upstream materials, such as copper foil, glass yarn and glass fabric, increased due to the shortage of supply. Thus, the Group will raise the price of laminates correspondingly. The Group has captured this market opening to increase capacities for thin and halogen-free laminates, as well as LED-related laminates.
Responding to keen demand for battery-use copper foils from electric-car manufacturers, the Group has expanded research efforts in related technologies. The Group aims to develop thinner battery-use copper foils that boast better functionalities than current mainstream products and increase correspond capacity”.
KL is the parent company of Kingboard Copper (KC). With the rising price of copper foil, it begs a question especially for Minority Shareholders, “would this benefit KC”. Unfortunately, the answer is “NO” given its exclusive rental agreement termed as the “Harvest License Transaction”. This license, first signed in September 2011, was last renewed in August 2015 for a further period of 2 years.
The argonizing wait for the long suffering Minorities continues pending the Court Appeal hearing.
In view of the Bermuda Supreme Court decisions and EY’s report, KL should step forward with an acceptable buyout offer and end this saga amicably with the Minorities.

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28 Nov 2016 20:54 #23382 by Garak
Special General Meeting tomorrow, ie 29 Nov. are they serious about share buyback?

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29 Nov 2016 08:17 #23383 by lotustpsll
In the circumstances they are in - Bermuda Supreme Court decisions, EY's report and the huge discount P/BV, my bet is KC is dead serious.

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