Vampire bites Shanghai Industrial
4 June 2003
For the 8th time this season, investors in a Hang Seng Index company, this time Shanghai Industrial Holdings Limited (SIH, 0363) have voted against the general mandate, as we show below.
For readers not familiar with it, Project Vampire (Vote Against Mandate for Placings, Issues by Rights Excepted) urges shareholders to vote against the general share issue mandate unless it complies with our recommendations, based on international best practice, which are:
- The mandate to issue shares for cash, other than by a rights issue, shall be in respect of not more than 5% of the issued shares a the time of the mandate
- The discount for shares issued other than by a rights issue shall not exceed 5%.
- The mandate to issue shares for other purposes, including acquisitions, shall be for not more than 20% of the issued shares
SIH is 59.13% owned by the Shanghai Government and 2.00% held by directors, taking the total insider ownership (excluding any employee shareholdings) to 572,425,000 shares, or 61.13% of the company.
Assuming the insiders voted in favour of their board's proposal, and deducting that from the votes "in favour" in the official poll results, then the voting of independent investors on the issue mandate was as follows:
Votes | Share | |
---|---|---|
In favour | 23,714,432 | 49.23% |
Against | 24,452,142 | 50.77% |
Total | 48,166,574 | 100.00% |
Total votes cast were 13.24% of the free float.
© Webb-site.com, 2003
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