5 thoughts on “Update No. 314 – as at COB 31/08/18

  1. Paul Bide says:

    Hi Tony, thanks for the update on UOS. One question that springs to mi when looking at the people in the company is that they are fairly advanced in years and have been successfully growing this company for 3 decades….that can’t go on forever. Are you aware of and comfortable with succession planning, particularly given the family involvement here. That can be a risk if family dominates when it possibly shouldn’t. regards, Paul.

    • tony says:

      Thanks for the comment Paul. I ask about succession at the UOS AGM every year. Much like any number of Asian founders (look at Li Ka Shing, who stepped down as Chairman of CK Hutchison this year just before his 90th birthday), I suspect CS Kong will run the company as long as he is physically and intellectually able.

      With that said, the company employs a “federal & state” based model, with the Kong’s operating as a President or Prime Minister function, with the operations of the organisation below that broken into several states. The best performing “Premier” of these states I am led to believe will have the inside running to assume the CEO role when the time comes.

      One should bear in mind that Jimmy Kong is younger than CS Kong too, the runway for one or both of these founders to continue at a very senior level is potentially much longer than people expect – Tony

  2. Paul B says:

    thanks for your reply. Good to know that this is not a surprise or a negative. One more question about UOS – how does the dual listing with the Singapore exchange work in terms of NAV and fair value? Are all our funds holding in the ASX listing? Would you add via the Singapore stock if it were better value? I am assuming that the relative liquidity means that there is no transitionally available arb?

  3. Paul B says:

    Hi Tony, thanks for the answer. I had a follow up question, more out of curiosity than anything else. I thought I had sent it already but may have not submitted it properly but my apologies if it ends up doubling up. I was wondering about how the Singapore listed stock traded relative to the ASX listing. How would you determine how it trades relative to NAV given the dual listed arrangement? I realise liquidity is probably limited, but would it theoretically be a relative value that you may transact as a result of? Does the Singapore stock trade more frequently than the ASX stock? regards, Paul.

    • tony says:

      We watch the Singapore exchange and periodically the ASX/SGX uncouple by a wide enough margin to make buying one over the other logical. We have not yet exploited this inefficiency although we could should we wish to do so – Tony

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