Global Investment Limited (Attempt To Unlock Intrinsic Discounted Value)- Wiping off Accumulated Losses from the Global Financial Crisis. Global Investment Limited (“GIL”) has announced on 28 September 2018 that it intends to carry a particular General Meeting (“SGM”) to go after a few regular resolutions. Most of the resolutions suggested are credited to technicality concern when GIL transfer the domiciliation of the business from Bermuda back to Singapore.
Hence by virtue of the Singapore Companies Act and SGX Listing requirement, it required shareholders to provide a fresh mandate such as on existing talk about buyback and Scrip Dividend Scheme that are already in existence under regulations of Bermuda. I will give a quick spotlight of the 2 2 regular resolutions that may have a larger effect on the financial and talk about price. The first ordinary resolution is a capital reduction exercise proposed by GIL essentially. There is absolutely no financial impact from this quality being pursued actually. But I reckon that it’s an attempt to eliminate the stigma of the huge losses incurred by the previous Asset Manager, Babstick & Brown.
The stigma is definitely associated with an enormous discount from the reserve value of GIL. 236Mil up to 31 December 2009. The losses arose mainly from the impairment of the underlying investments made in 2008 and 2009 through the Global FINANCIAL MELTDOWN. ST Asset Management Ltd got over as the supervisor of the business on 25 November 2009 followed by Singapore Consortium Investment Limited from 29 April 2016 till present. 127Mil has been distributed out as dividends.
This exercise performed is to better reflect the fundamental resources of GIL’s balance sheet. This will take away the “Accumulated losses” that is so prominently being shown as negative on its balance sheet. By flushing the losses against talk about capital, my think is that the directors are trying to dis-associate GIL from its prior management during the Global FINANCIAL MELTDOWN. This seems like a re-branding & marketing work for investors to re-assess the Company based on the solid track record of the new management. Will have to give the management credit because of this valiant attempt to make an effort to close the space between the net realizable values against current undervaluation by the market on SGX.
- Government Accountability Office, “State and Local Retiree Benefits,” GAO-08-223, p. 9
- Cochise says
- For administrative purposes, or
- Planning for a new kind of future
- Monitoring and administration of construction contracts
GIL intends to get shareholders’ authorization for the transfer of the domicile of the business from Bermuda to Singapore by using a discontinuance out of Bermuda and continuation and sign up in Singapore. Currently, for any corporate and business transactions and exercise undertaken by the business would have to comply with both the rules and regulations of Singapore and Bermuda.
There is thus a duplication of legal expenditures for compliance. By switching the re-domiciliation of the business from Bermuda to Singapore, you will see cost savings in the costly legal fees for compliance purpose. Hence overall, this effort is an excellent move as it would lead to faster execution and lower costs incurred by GIL. I believe that the management of GIL are amazing and pro-active in terms of doing their finest for the Company and the resources under management. It really is great to see that the management are making initiatives to lessen the magnitude of the huge discount of the marketplace value relative to the intrinsic value.
I am keeping my fingertips crossed that with the proposed resolution, there will be some short term improvement in the shutting of the existing gap. However, I am uncertain how effective this move will be given that the undervaluation issue has been there for quite some time. If this does not work out still, the management should probably up the ante and get some good big investors to come in and buy out GIL nearer to the reasonable value. Then inject new resources or business along with existing ones into a fresh Company and then do an IPO in future. This appears to be the only quick way to unlock the dormant value hidden in GIL.
Bowles said it was “pie in the sky” to anticipate the EU to radically reform equivalence to Britain’s preference for a while. Within a reminder to London of what’s at stake, the European Commission is because of announce it has scrapped equivalence centered access for the very first time because countries refused to maintain with EU rules. David Wright, the previous top civil servant for financial services at the European Commission and now with Flint Global consultants.
Since substance interest is one of the most important financial education concepts around, It was thought by me only proper to provide you with this pursuing great Simple vs. Compound Activity Lesson. It’s available for one to use with any age group of kids or teens (or adults for this matter…many don’t understand the difference). I’ve discussed the experience below as well as given you the handout in PDF format. In addition, there are seven cue credit cards of sorts (8.5 x 11 laminated placards) to use as props so your participants really understand what you’re discussing. Here’s the experience. Downloadable PDFs are located at the end of the experience. 8.5 x 11 Simple & Compound Interest Signs, students as volunteers.