London Asia Capital Share Discussion Threads

[marksp2011] 04/7/2013 08:11

loverat

and what was special about the way he handled that was that i don't believe he was aware that the caller was recording the call. As Chairman of Spurs, when they were in the financial pits, he must have had a few people calling him :)

Topvest

Why are the accounts taking so long? My guess would be that the directors valuation of the assets may have been a bone of contention. If the FD and the Chairman don't agree on the value, the accounts will be a bit of a struggle as that is all that is in them.

I wonder if Toby has resigned as the only salaried employee too? I think he was on £120k and he is CFO elsewhere too

[topvest] 02/7/2013 21:34

Good news I suppose, but it does beg the question what they are all doing other than endless bickering and spending our money achieving nothing of tangible note.

"In wishing each other well for the future, Toby Parker has agreed to work and cooperate with the Company on dealing with various administrative matters, including ensuring the completion of the accounts and other matters pertaining to the future of the Company."

There is virtually no revenue and just some costs + revaluation of various dubious investments. Why are the accounts not completed exactly? I could prepare these in a week or two...so why not just get them done, particularly given the auditors give a disclaimer of audit opinion anyway!!

Anyone else also noticed that the communications are generally just about their own jobs or remuneration. There is no interest in updating shareholders unless the money tap is at risk of being turned-off. It's always been about self-interest here in my opinion.

[loverat] 02/7/2013 19:01

I always remember there was a recording of a rather amusing telephone call circulating on the internet a few years ago. It was during the Langbar episode and an individual in one of the opposing factions was having a go at DB down the telephone. I always the remember the moment during the call when the other guy said something intended to be not very pleasant about DB. There then followed a brief pause waiting for DB to respond...followed by DB chuckling away as if to dismiss the rantings of someone far beneath him.

After listening to that I realised that he was more than capable of infuriating his enemies and bringing people back down to earth.

[rotors] 02/7/2013 18:44

The Chinese of course would say 'may you live in interesting times' which is a much quoted curse...

This may just be papering over more serious cracks but I quite like the style of DB.

I will watch with interest. Never a dull moment at LAC!

[marksp2011] 02/7/2013 18:24

we live in strange times

[unionhall] 02/7/2013 10:04

Peace breaks out......


News Alert

Letter to Shareholders
Posted: 02 July 2013

Dear Shareholder

Pursuant to an agreement made between the Company, Toby Parker and others on 1 July 2013 to reconcile the differences between them referred to in my letters to shareholders of 11 and 20 June 2013, Toby Parker has agreed to resign as a Director of the Company at the forthcoming General Meeting. An announcement regarding the details will be posted in the next few days on the website.

In wishing each other well for the future, Toby Parker has agreed to work and cooperate with the Company on dealing with various administrative matters, including ensuring the completion of the accounts and other matters pertaining to the future of the Company. It was also agreed that the dispute regarding the engagement of Sir Jeremy Hanley and David Buchler was a misunderstanding and all allegations regarding Sir Jeremy's incapacity have been withdrawn.

Yours sincerely

David Buchler
Chairman
London Asia Capital plc

[marksp2011] 23/6/2013 17:48

Loverat,

It is true that when things go wrong there seem to be many people who offer to help at several hundred pounds/hour :(. On a strict business case basis I can't think of any SHAGs that have achieved much.......... for the shareholders that is.

In this case I am not certain what set this off. Something triggered it - the move against Buchler/Hanley and the appointment of 3 new guys - what came first? I don't know.

i do know that they can see some money - the question is whether it is enough to close out this sorry mess. Given that Toby has >1M shares I am sure he has a view. Given that Buchler needs to be able to recover it I am sure he has his. The more he recovers the more he gets - so, I can't really see why their interests wouldn't coincide

I really can't see what leverage we have to force anyone to deal with us. We are going to get the short end of the stick - the only question is how short it is.


My view is simple. get both sides to say their piece and then we all vote. As I don't know what rules the board operates under, I can't have a view on who is in charge at the moment. Let's hope they are acting in the best interests of the shareholders whichever camp they are sitting in

[loverat] 22/6/2013 17:59

Hi Marksp2011

Langbar is relevant because although a unique situation there are a number of similarities. DB's track record is very relevant to how things play out here. Both situations are fascinating case studies of fraud on AIM and excellent learning points.

I actually first took an interest in this company when the irregulaties were discovered and it was curious links from Langbar which led me directly on to this. For example one of the parties involved in the shareholder action/recovery process at Langbar who was constantly harping on about the integrity of everybody else connected to Langbar and LSE, was friends with at least one of the directors on Littlewood's board. Under a host of various ADVFN user names he played a part in ramping these shares for years prior to the suspension which to me, raised serious question marks over his suitability to have a role. At least two LAC directors were ramping these shares for years too. I believe one of these directors was put forward by the Langbar Action Group to replace DB around 2005/2006. Thank goodness that never happened.

Then I became fascinated by the findings of Negal and his team into the irregularities. And then imagine my surprise when DB came on board after the Keith Negal era. But then perhaps I should not have been that surprised when some of the shareholders here are ex Langbar shareholders loyal and friendly to DB.

Anyway I have praised DB for some of the things he has achieved but there has always been a question mark over whether he fights his corner for shareholders.
When I discuss any share, company or special situation like this, the way to learn and speculate what may happen is to look at comparable events. For example you can learn alot from historical share price charts and track records of AIM directors because in the investment world, events have a habit of repeating themselves. That's why people should have an open mind here and look around.

Up until DB came aboard I saw the process here as a model of success for others to follow. The investigation into the fraud was excellent work and publishing the findings was a master stroke. The publicity was a good thing and directly resulted in shareholders offering their support and uniting against the danger of the criminals and their cronies coming back.

Of course the delicate recovery process is very different and maybe a new pair of hands was needed. However that is not a reason to criticise past achievements or directors who take a more robust view. Anyway the problem with Langbar was that shareholders were split. DB claims someone is trying to split shareholders here. With Langbar there were three expensive law firms involved and several expensive directors and too many people jumping on the compensation bandwagon. With the latest developements here I do wonder whether we might see a few more people getting in on the act. I do hope not.

I also note what you said about Gardin and I would not make my mind up about this by whose side he happens to be on this time. As I am sure those who know their history, Italians often change sides and take the side which suits them best at the time. I guess you might call that pragmatism! Anyway I am not sure whether Toby Parker and Gardin are what you might call natural allies, so I have a theory.

If we accept that Gardin is someone who would try to be on the side aligned most with his own personal interests, it is perhaps strange that he would come out against someone like DB. I wonder whether what seems like an unlikely alliance was formed because someone was actually making moves against them - as directors associated with the past. Perhaps DB wanted to install his own people and forced their hand. Just a theory.

[loverat] 22/6/2013 13:22

I would like to know what DB means by this. Who has been trying to divide shareholders into two groups?

As an aside it brings back memories of when his 'pragmatic' tactics contributed to dividing Langbar shareholders into two groups. The shareholders who went their own way achieved a significant recovery at the expense of shareholders who were loyal to him. Incidentally if I recall it was him who made the substantially enhanced offer to the rebel shareholders. Be very careful what you believe and keep an open mind.

The previous Board, which included Toby Parker and Professor Gardin, always appeared to seek to divide shareholders into two groups and to fight the Company's largest shareholder, Richpoint Limited, through the press.

[loverat] 22/6/2013 13:14

I think folks here have to be very careful when reading the last statement. That represents only one side of the story and DB's interpretation of events.

I am not quite sure who he is referring to when he talks about previous management. I personally think this company would never have got so far had it not been for their sheer determination and playing hardball when it mattered.

There is a very fine balance to be struck here. I would usually go for being pragmatic. You have to be pragmatic at certain times to get what you want. However this situation may be an exception to the rule. If you are dealing with the Chinese, they tend to respect people who stand up to them. Being reasonable and pragmatic is often interpreted as a sign of weakness. Therefore I believe that a highly skilled recovery expert would need to be both tough and determined but pragmatic when the circumstances require. Therefore I believe you cannot succeed by adopting one approach throughout.

The other thing to remember is that this depends on the individual interpretation as to what is a reasonable and achievable settlement. DB's view on an acceptable settlement may well be far lower than what is reasonable and achievable. On the other hand, as DB says other directors expectations may be unrealistically high. No one on the outside really knows the true story and therefore I would reserve judgement until both sides of the story have been presented.

[marksp2011] 22/6/2013 12:48

That is quite explicit for a DB letter:)

yes. As I suspected. There is an offer on the table - Richpoint can play or stop it as they are the controlling shareholders (and probably the buyers of the stake) Richpoint can buy us out or not as they see fit and at a price they determine is fair

The underlying question is whether we take the moral high ground and hang in incase X or Y chooses to pay us more at some later date - no idea why they would want to do that - why pay more when you can pay less or, a bag of crisps if that is what they want to offer - or, we settle for what we can get, Distribute the money and try and forget this ever happened.

I think Toby is right there is a lot of money in the assets but as we can't force Richpoint and friends to buy us out it is irrelevant - they are only worth what you can get for them. Prof Gardin was a leading light at Brainspark for many years - I will pass no comment except suggest that everyone has a good look at that company to see if they would like to follow the Gardin path

It is really distasteful but, I will take what I can get rather than wait for an unknown period for an unknown recovery as the legal bills mount. I have my eyes on the money and, I don't really care if Noddy is the company chairman - show us what the offer is an lets us vote on it. At least if I have my capital back I can invest it and hope to get a return - there is no benefit to me of a lot of Far eastern business men using my capital for their advantage.

[topvest] 21/6/2013 21:22

No accounts until the Autumn though by the sound of things!

[topvest] 21/6/2013 21:21

Yes, sounds fair enough. Lets hear the other side of the story then. I certainly agree that we are unlikely to see a return through fighting the larger stakeholders whatever tactics they have employed in the past.

[unionhall] 21/6/2013 10:29

sounds very democratic......


It will be interesting to get some meat on these bones.....

" Sir Jeremy Hanley and I feel we now have a way forward for shareholders which would allow for the funds and assets of the company to be appropriately distributed to shareholders. "

[rotors] 21/6/2013 10:21

20 June, 2013


Dear Shareholder

Following the information that I posted on our website on 11 June 2013 I should now like to provide shareholders with an update. I have convened a Board Meeting for next week at which I will recommend to the Directors that a General Meeting of the Company's Shareholders be convened for no later than the end of July.

I will be proposing that all the current Directors stand for election, whether or not required by the Articles, so that shareholders can decide the composition of the Board going forward. My intention is to ask shareholders to support the election of Sir Jeremy Hanley, Fenton Higgins, Peter Hewitt, Stanley Simmons and myself and to oppose the election of Toby Parker and Francesco Gardin. When I write to Shareholders formally convening the General Meeting I will set out in detail why I feel I must oppose the continuation of Toby Parker and Francesco Gardin as Directors of the Company.

The events of the last two weeks have brought to a head the need for shareholders to decide the direction they wish the Company to take and who they wish to lead it. Since my appointment in 2011 I have tried my best to respect the interests of all shareholders and stakeholders. The previous Board, which included Toby Parker and Professor Gardin, always appeared to seek to divide shareholders into two groups and to fight the Company's largest shareholder, Richpoint Limited, through the press. This clearly did not work and any attempt to revive it appears equally doomed to failure.

My approach has been different and, as a Director and Chairman, I have spent considerable time over the last two years, visiting the Far East on many occasions, trying to rebuild the broken relationship between Richpoint and our Chinese joint venture partner on the one hand and LAC and its other shareholders on the other. No LAC shareholder is going to see any return unless there is a consensual agreement that respects the rights and obligations of all parties. Sir Jeremy Hanley and I feel we now have a way forward for shareholders which would allow for the funds and assets of the company to be appropriately distributed to shareholders.

This approach is essential to the ultimate success of any endeavour to provide shareholders with a way forward to realise value from their investment. In the period leading up to the General Meeting I will continue to do all I can to enhance the prospects of shareholder value being returned but we will make no major decisions of principle until shareholders have made their decisions on the composition of the Board.

I am really grateful to the many shareholders who have indicated their support to me in the last week or so and I will continue to work for all shareholders' best interests at all times.

David Buchler
Chairman
London Asia Capital plc

[rotors] 21/6/2013 10:18

New letter to shareholders on website, June 20th.

[irenekent] 21/6/2013 09:43

Surely the question is whether the ompany is earning anything and if so where is the money going? Where is the money coming from to pay directors? Are they hanging on until its all run out, at which point they decamp and leave shareholders with nothing. I sometimes wonder how long before the new Chinese government realise that all these financial scandels involving people who try to invest in China in good faith are ruining what is left of China's overseas image. You only have to look at what has happened to Anthony Bolton. He was very naive to think that a concept of 'fair play' and honesty would prevale amongst this bunch of shysters.

[topvest] 17/6/2013 17:01

Thanks - I would be very happy with that. I'm not optimistic though. I think this will go on for years and we will get either nothing (most likely) or a derisory offer (next best chance). My risk weighted assessment of 2p is about what I'm valuing this one at.

[marksp2011] 17/6/2013 10:17

There is already well greater than 2p available for distribution

One person very close wants over 20p another wants to settle for less than that as he doesn't think we have the negotiating position to get full value

It all depends on what you think assets is worth.If the book value/enterprise value is X and noone will pay you that for it we are in a debate between price and value - do we hang on forever hoping for justice or, do we be pragmatic and take what we can get feeling we have been cheated again but at least we have something back. . I'll bet that as soon as we have no holdings the assets will suddenly get a lot more valuable

I am hoping for 7p as a minimum - if everything ended perfectly and buyers stumped up a fair price we could be looking at 25p

[topvest] 16/6/2013 21:16

I would settle for 2p per share. What do others hope for? I'd be amazed if we ever get fair value out of this pile of rubbish, so happy just to get a minimal amount and move on.

[marksp2011] 16/6/2013 20:54

Topvest

Toby has 1.3 M shares. Mr Gardin has none - his profile on Bloomberg makes interesting reading
DB and team are paid on results

The letter says Toby and the guy with the illustrious history at Brainspark tried to get shot of DB and Hanley. Whether Hanley has been at the meetings must be pretty easy as it will say so in the minutes

My guess.........DB wants to settle with Richpoint for "X" but Toby thinks he should try and get more.

We shall see

[topvest] 16/6/2013 15:04

Presumably because the FD that prepared them has been suspended. What a nonsense!..I think all he / they tried to do was to suggest the knighted member of the board hadn't actually done anything and get him removed. Suggests the Board are not even on speaking terms, doesn't it!

[unionhall] 16/6/2013 11:54

If the accounts have been prepared/audited why would they be checked again ?