London Asia Capital Share Discussion Threads

[irenekent] 07/12/2009 14:54

It seems possible to me that the shares could have come from QVT or even Littlewood. The failure to get their way often leaves bullies with no option but to cut and run!

[leapinn] 07/12/2009 10:11

Ok - Couldn't understand how new shares had been issued and who set the price.


If, as seems certain now, they were bought off a holder then that is good business and puts more shares in long term hands.


Thanks for info guys.....

[stevenlondon3] 07/12/2009 10:05

At the AGM I spoke to one shareholder who was keen to sell. There must be some investors after the battering of the last two years who just want to get cash in the bank. If the true NAV was around 11p then 5p seems a fair price. I suspect the waida investment has however appereciated in value.

[blackmonday] 06/12/2009 22:32

The shares were purchased after the EGM not before, so they could not have been used to swing the vote.

The only question I would want to know is if the shares were bought off existing shareholders who wanted to get out rather than from the compnay issuing new shares? I would not like to see the company issuing new shares at half the potential asset value and it would be helpful to have a clarification. A listed company would have to disclose any new share issues I believe. In addition clearing up even 10m shares from disaffected shareholders would be a positive going forwards.

[loverat] 04/12/2009 05:15

I suppose that 10M buy may have been a factor to snuff out any future attempt. It would be interesting to see the composition of the votes although with current directors holding just a few per cent before the EGM and shareholders not voting there looked to be a small but real chance of QVT and Littlewood sneaking past the finishing post.

It seems that the institutional holders were instrumental in defeating the requisitioners/Littlewood who I reckon must have held 17% or thereabouts. I was pleasantly surprised that the revelations about Littlewood were published when they were. Impeccable timing in my opinion and perhaps designed to concentrate minds before the EGM. If the mood on here was anything to go by there were at least some shareholders debating the merits of voting for the requisition. Any notion of that was swiftly dispatched to the bin when those shocking revelations were published. I think that decisive shift in mood would have been reflected in the moves by the bigger players.

[tokyojohn] 04/12/2009 01:48

The directors paid nearly double the closing price when the shares were suspended. That's how I look at it. 10p is just the estimated NAV, but plenty of shares trade well below that measure.

[topvest] 03/12/2009 21:42

Somebody said the vote was 89m v 76m. Presumably a 10m swing vote would have changed the result. Anyone else thinking that is the real reason for the 10m director buy. Someone saw an opportunity maybe to put some pressure on the board?

[loverat] 03/12/2009 17:12

leapinn

I would not worry too much about what the shares are worth. Who pays what shares are actually worth?

Closing share price of LDC at suspension was around half what the directors paid.

[leapinn] 02/12/2009 08:05

As a demonstration that we share this confidence in the future, following the EGM your Directors purchased an aggregate of 10 million shares at a price of 5p.


I thought the company was worth 10p per share ?

[loverat] 02/12/2009 04:50

Yes - makes them sound like a bunch of blood sucking parasites. Obviously Negal is not only a first rate businessman but has the necessary skills to influence people and get them on his side. Bodes well for the future.

Hopefully Littlewood and Co will now disappear back under their stone.

[tokyojohn] 02/12/2009 04:29

Fantastic letter!

"the requisitionists and Simon Littlewood"
Makes them sound like a medieval cult. Great stuff.
Down with the requisitionists!

And a big vote of confidence with 10 million shares bought by the directors at 5p. I'd hoped the relisting might be earlier than late 2010, but I guess these things take time.

[loverat] 02/12/2009 04:11

Well impressed with the way Negal has handled this and the communication with shareholders.




30 November 2009

Dear Shareholder
Results of the EGM

I am delighted to report that at last week's EGM the resolutions were passed as your Board recommended. Indeed, if the votes of the requisitionists and Simon Littlewood (who voted with them) are discounted the overwhelming majority of shareholders supported your Directors, decisively rejecting the Proposed Directors with their liquidation strategy. Instead shareholders voted strongly in favour of the Proposed Tender Offer by Wuhan Kaidi Holding Investment Co. Limited of 5p cash per share to enable Kaidi to acquire a shareholding of 29.9% of the Company.

Before we can progress this we must first complete the challenging task of preparing accounts for prior years. By now you will have received the Report & Accounts for the year to 31st December 2007, which will be presented to shareholders for their approval at a General Meeting to be held at 11:00 am on 18th December 2009 at the offices of Speechly Bircham LLP, 6 New Street Square, London EC4A 3LX.

Although we have been delayed by the EGM we now hope to circulate the accounts for 2008 in January of next year, holding the next General Meeting in February. This will bring us back in line with our statutory requirements. The 2009 accounts will follow very quickly and we expect to circulate the Tender Offer document shortly afterwards. Once the Tender Offer has been successfully implemented the next step will be to return the Company to a listing, which we hope to complete towards the end of 2010, enabling shares to once more be freely traded.

We are extremely grateful for your vote of confidence at the EGM. As a demonstration that we share this confidence in the future, following the EGM your Directors purchased an aggregate of 10 million shares at a price of 5p. It is our intention to continue to work energetically to justify your support and increase the value of your shares, and ours, in London Asia Capital plc.

For further information please monitor the Company website which will carry regular updates; www.londonasiacapital.com.

Again, thank you for your support.

Yours sincerely,


Keith H A Negal MBA FCMA
Chief Executive

[leapinn] 30/11/2009 09:55

schadenfreude...

Always wanted to use that word - (well since I found out what it meant last year LOL)

[tokyojohn] 30/11/2009 09:52

I see QVT are one of the hedge funds that have invested heavily in Dubai and are now scrambling to find out what's happened to their money. Couldn't happen to a nicer firm, judging by their conduct over LDC.

From the Observer:
"Furious bondholders have arranged emergency talks with Dubai officials this week in an effort to get some clarity on the financial health of the state-owned company Dubai World, which caused widespread panic on world markets last week when it asked creditors for a six-month standstill on debt repayments.

A conference call has been organised by the New York-based hedge fund QVT Financial, after an attempt last week was abandoned when the telephone system collapsed under the weight of calls."

[tokyojohn] 30/11/2009 09:47

London Asia Fights Off Challenge

Article Date: Nov 24 2009

Shareholders in de-listed London Asia Capital (LAC) have voted down hedge fund QVT's demand to sell its portfolio and change its board.

QVT, holder of 12.3 per cent of LAC, had called a special shareholders' meeting today to support its proposals, which included putting Brett Miller of Astaire Securities and others onto the board of LAC, whose shares had collapsed from 120p in 2007 to below 3p before de-listing last December. However, enough shareholders backed LAC's present chief executive Keith Negal to thwart the hedge fund's plans.

Negal wants London Asia to consider a tender offer for up to 29.9 per cent of the company at 5p a share by Wuhan Kaidi Group, a co-investor with LAC in investment group Zhongying Changjiang International Credit and headed by influential entrepreneur Chen Yilong. Troubleshooter Negal, who was brought in to unravel the tangled web of investments assembled under the company's previous boss Simon Littlewood, says he has already restored LAC's potential net asset value to £24.6 million, or 10.7p a share.

[topvest] 28/11/2009 20:31

AGM on the 18th December and so we may get some more news then. I will probably take the 5p if we get offered that.

[phbatbjco] 27/11/2009 20:41

I had written these off and was hpoping to claim a CGT loss 2009/10!

If they're quoting a price of 5p we should believe its prob 10p fair value!

[topvest] 25/11/2009 21:47

Great - we have the accounts. Disclaimer of audit opinion as expected. This will lead to qualifications in future years, but I am now 100% convinced that existing management are doing the right thing for us. They have delivered on their promise and I think we should now get behind them and support them.

[loverat] 25/11/2009 19:36

Well done folks.

I think this is a good result for shareholders. I must say, I have been very impressed with the work of Keith Negal.

Keep on top of things though. Don't dwell too much on the littlewood stuff. It seems this is being looked into already. And as for him and the other offenders - there are things happening at the moment.

One day soon they will all wake up and see that the law applies to them too.

[curt3] 25/11/2009 15:46

When somebody in charge creates such a tangled web of blatant destruction on a company they can only be (1) mentally deranged to the point of naive incompetence or (2) devious and callously corrupt. Take your pick!!

[leapinn] 25/11/2009 10:39

Opens ok for me....

[irenekent] 25/11/2009 10:36

Can't seem to download the report - coming up as damaged file - anyone else having problems or is it just me?

[irenekent] 25/11/2009 10:30

So, Mr. Littlewood rises like Phoenix from the ashes of LDC. A cursory glance at the Golden Bridge website brings forth a number of names that are familiar to LDC shareholders, Victor Ng in particular. China Eastsea, China Growth Opportunities, and a string of other names that were formally involved with LDC, but no mention of LDC! Obviously they know that people might check up on him if it came out that he had screwed up so badly at LDC.

It seems to me that this man is incorrigable, but at least we now have an address for him.

[stevenlondon3] 25/11/2009 09:54

I also went along to the AGM.
Wisely the board sound as if they are only going to chase Littleood over the share swap.....management time is not going to be wasted on a fruitless vendetta.

Earl of Cromer is going to be a key figure in the ongoing Zhongying investment.
As this is now half the published NAV and (more of the hopefully of a more realistic NAV )hopefully we will get more information. LAC holding will be diluted to 15% of Zhongying.

Speaking to the FD. All the hard work has gone in to producing the 2007 Annual Report...2008/2009 should be a doddle (my paraphrasing).

The board clearly think there are no shortage of buyers at 5p ...

Greed and Fear....to think eight months ago I would have leapt at 5p. But the 5P has been cleverly pitched when you look at the discounts on private equity invetsment trusts.