Investors who voted at Shanghai Industrial's AGM last week voted against the general general issue mandate by an estimated margin of 51% to 49%, the 8th win in the Hang Seng Index for Project Vampire.

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:

  1. 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
  2. The discount for shares issued other than by a rights issue shall not exceed 5%.
  3. 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

Organisations in this story

Sign up for our free newsletter

Recommend Webb-site to a friend

Copyright & disclaimer, Privacy policy

Back to top