Feng’s frankly stated that the number of shares he accepted for scrip dividends would not increase his holdings by more than 1.99% of the “enlarged share capital,” thus avoiding the potential mandatory offer obligations, and therefore the minority shareholders if they choose to scrip dividends. There will be no offer to protect the reserve price. To make a major change, it is estimated that the key reason is that the CSRC asked Feng to make a clear disclosure on the stock dividend interest intention on March 14. It is not ambiguous. It will not be announced until March 28 after the stock scrip dividend plan is closed. Therefore, if Feng said on March 14 that he would break the dividends in full, it is believed that most of the minority shareholders feel that they will follow the stock exchange scrips because of the potential offer relationship. A result is a large number of new shares. The net asset value per share was significantly diluted, but Feng could not achieve the goal of increasing the shareholding of the shares. It would be better to announce that it would not increase its holdings by more than 1.99% of the enlarged shareholders, so that the minority shareholders would not follow suit.
Although Feng’s announcement will not increase the shareholding by more than 1.99% of the enlarged share capital, we should also pay attention to whether it will be a dark-selling plan, because Feng’s friendly and non-executive director Rockowitz Bruce holds 406.6 million. Shares or 4.75% equity, if his full dividends are selected for scrip dividends, and other minority shareholders only have a small portion of the stock dividends, Bruce’s equity will increase significantly, and we will know whether the results will be the next week.
Regarding the disclosure of Feng’s share of interest, there are significant problems. According to Feng, he will not evade the obligation of mandatory offer by increasing the shareholding by more than 1.99% of the “expanded share capital”, but “expanded share capital” is an unknown number before March 28, After the results of the scrip dividends, I realized that there will be a lot of new shares and enlarged share capital due to the scrip dividends. Then Feng’s decision to use the scrip dividend before 4:30 pm on March 28, how can be ensuring that he will not increase his shareholding by more than 1.99% due to the scrip dividend. Does the company allow Feng to have the data of the enlarged share capital after 4:30, and then make the decision on the number of shares to be used? If this is the case, then the company has irregularities!
As a minority shareholder of the target, we need to closely monitor the results of the scrip dividend announced on March 28. If the result is that Feng’s shareholding by stock dividend is just a little lower than 2% of the enlarged share capital, it means that there is a violation of the company and Feng’s. Otherwise, Feng’s prophecy is not enough. To expand the shareholder’s 1.99% equity? If there is any suspected violation, we can only complain to the CSRC as a minority shareholder to protect our own rights and interests.
BACKGROUND INFORMATION: That’s why I buy Global Brands Group Holding Ltd(787.HK)