Webb-site has learned that ISS, the leading proxy advisory firm, has joined us in recommending voting against the sale of Lerado's core business, due to the excessive capital retention.

ISS recommends against Lerado (1225) sale
4 September 2014

Following on from our article of 1-Sep-2014, Webb-site has learned that ISS, the leading proxy advisory firm, has recommended its clients to vote AGAINST the sale of its core business. They concur with our analysis that although the terms of the disposal appear fair, the excessive capital retention outweighs this.

The ISS recommendation, which is normally widely followed by institutional investors, increases the probability of the transaction being vetoed. Webb-site has also received a number of e-mails from investors large and small who will vote against the sale until the board addresses the capital excess. Vote now, see our voting guide, and contact us if you are having problems voting.

It is not too late for the board to do the right thing. The directors (including the independent directors) should announce an increased distribution of not less than HK$1 per share, and postpone the Special General Meeting to allow time for shareholders to consider the revised plan. If they do that, then this would address our concerns and we would change our vote.

© Webb-site.com, 2014

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