HKR International (HK480) – 24 August 2016

Home » HKR International (HK480) – 24 August 2016

Disclaimer: These are excerpts from student assignments conducted as part of a Corporate Finance class. The opinions represented do not necessarily agree with mine. I do not vouch for the quality of the recommendations or the accuracy of the numbers. Follow the recommendations on your own risk.

My @LSEPKUSummerSch #CorpFin #students gave voting recommendations for the #AGM of #HKR $HK480

#students call out current #directors for slowing growth in revenue, call for more independent directors #AGM of #HKR $HK480 #board #election

@LSEPKUSummerSch #students think #HKR current leverage high, but proposed share issuance may dilute minority shareholders further #CorpFin #Leverage #HKR $HK480

@LSEPKUSummerSch #students believe shares in #HKR current undervalued, lots of growth potential #HKR $HK480 #valuation #CorpFin

Proposal Excerpt of Student Recommendations
For Against
(2)Director election
  • Directors seem experienced, qualified and loyal
  • Perhaps directors are not accountable for the slowing growth in the revenues because they hold such a large fraction of the shares?
  • Minority shareholders would be better protected with another independent director.
(4)Authorize rights offering
  • A rights offering will allow HKR to issue new capital and make long-term investments
  • Equity issuances will dilute current shareholders and concentrate ownership even more
(5)Authorize share repurchases
  • Students believe that HKR is currently undervalued and therefore shares repurchases cheap
  • Share repurchases will also allow current shareholders to cash out

Video: Emil Lauritzen