Kingboard Copper - Special Situation

They have acted as IFA in 14 cases last year.

The following statement, inter alia, released by Ong Tiong Wee, Independent Director, on 20 March on the Bermuda Court case - “The Board wishes to update the Shareholders that the appeal hearing has taken place on 6 and 7 March 2017 and the judgment is expected to be issued on or after 24 March 2017. The Company will make further announcement as and when necessary to keep Shareholders informed of material developments in this matter”.

In view of the gravity and materiality of the Bermuda Company Act Section 111 in which the respondents was charged with, I don’t see how Kingboard Copper can avoid disclosing the judgement of the Appeal Court on the recent appeal hearing.

Minority shareholders are impacted by this Court case and they have the right to know of the Court decisions as soon as they are made available.

We hope the Independent Director will abide by his statement.

Recent Announcement on HKSE.

KB LAMINATES, owns 66% of Kingboard Copper Foils (KCF), delivered 2.4 times surge in 2016 net profit yearly to Hkd 4.347 billion (equivalent to Sgd 782 million), slightly higher than that of 2.1-2.2 times as expected in the positive profit alert earlier. EPS was Hkd 1.449. Final dividend soared nearly 64% yearly to 18.5 cents, together with special dividend of 30 cents.

As a comparison, for 2016, KCF reported net profit of Hkd 4.9 million (down 23% y-o-y). Despite persistent huge cash reserves (about Sgd 280 million as at 31 Dec 2016), no dividend was paid since FY2011.

The divergence of earnings between Parent and subsidiary is too glaring.

With the latest result announcement by the Parent Company, notably the record dividends declared, the frustrations and anger of the Minorities at KCF will surely mount.

Court appeal upheld. Disappointing turn of events. However, this special situation case yielded a return of 66% over 10 months.

Feel sorry for Minorities who held their shares for a long time.

The IFA has recommended that shareholders reject the offer as it is not fair and reasonable. But there are still so many jokers who are selling at 40cents in the market giving the major shareholder the chance to acquire their shares!

Who is attempting to accumulate Kingboard? Huge vol. today and a 21% ramp up in share price to 46 cents.

This alleviates the suffering of long-time shareholders but pls the undervaluation continues as the NAV of Kingboard is 386 HK cents (or 64 cents Singapore)>