Corporate Governance

Rare lender deal underscores India’s credit reset

4 March 2021

Creditors of real estate lender Altico voted to sell its assets to a unit of New York-listed Ares. The out-of-court resolution is a sign of maturity in a market where the regulator is too often forced to intervene. Foreign distressed debt investors have other things to cheer too.

Top Glove triple listing bid is a stretch

3 March 2021

The world’s largest rubber-handwear maker wants to sell shares in Hong Kong on top of Malaysia and Singapore. Firms with small home markets must often move to grow but few can juggle the complexities of three bourses. That may provide cover for it to ditch the least useful.

Danone’s governance fudge sours activist defence

2 March 2021

Under pressure from shareholders, the $47 bln French food and dairy group said that Emmanuel Faber will give up his CEO role, but stay on as chairman. Faber’s continued influence may deter potential successors. The board’s decision to back his strategy also makes change harder.

Coupang’s next delivery: better disclosures

2 March 2021

South Korea's e-commerce darling is seeking a $50 bln valuation. It boasts heady growth and hefty losses. Metrics such as fulfillment costs, reported by peers like Amazon, are missing from its prospectus, though. Scant detail on new bets also makes the IPO math hard to justify.

The house always wins with SPACs

26 February 2021

In poker, if you don’t know who the sucker is, it’s you. That’s also true of blank-check firms like the one that just did a deal with Lucid Motors. Sponsors, SPAC traders, merger co-investors and target-company owners all rake it in. Regular shareholders get the crumbs.

Capital Calls: CPPIB, Barclays, McPlant, DoorDash

26 February 2021

Concise views on global finance in the Covid-19 era: Canada Pension Plan Investment Board's CEO is booted for jab-line jumping; the UK bank wins a legal, if not ethical, victory over financier Amanda Staveley; Beyond Meat partners with McDonald’s and Yum; and DoorDash is too hot.

Crown Resorts raises Aussie governance stakes

19 February 2021

The $5 bln casino operator just lost one gaming licence and another is now threatened by a new regulatory probe. A board shakeup should help its case, but director candidates are in short supply. The usual suspects fill too many seats: Crown Chair Helen Coonan is a prime example.

South Korea leans into wrong sort of socialism

17 February 2021

President Moon Jae-in is exploring a plan to encourage corporate titans such as Samsung to share pandemic profit with struggling peers. A crisis that includes soaring unemployment is a good time for bold policy. Shoring up public safety nets would be a better long-term fix.

Amundi governance cloud has M&A silver lining

10 February 2021

Europe’s biggest fund manager named Valérie Baudson CEO. The elevation of current boss Yves Perrier to chairman is an eyesore for a company that flaunts its ESG credentials. Yet given the $16 bln group’s need for acquisitions, keeping the seasoned dealmaker around makes sense.

Hong Kong will ride China bulls beyond stampede

2 February 2021

A market frenzy has made the city’s stock exchange the world’s biggest at $82 bln and helped online broker Futu’s shares more than double this year. Valuations are frothy, but mainland rule changes should gird both the bourse and traders when momentum subsides and bubbles pop.

Leon Black report shoves Apollo in right direction

26 January 2021

The private equity firm unveiled shareholder-friendly changes following an investigation into its co-founder’s ties with Jeffrey Epstein. Plans to eliminate supervoting rights and separate Black’s CEO and chairman roles boosted shares. His full retirement would be better still.

Corona Capital: U.S. jobs, Covid-19 tests

8 January 2021

Concise views on the pandemic’s corporate and financial fallout: The U.S. job recovery is stalling as the pandemic surges, increasing the chances of more stimulus; a Covid-19 testing startup may be the reason for a rise in cases in Los Angeles.

Team Trump should be an ESG red flag

7 January 2021

It’s common for former U.S. officials to pop up on company boards. But cabinet members who stuck by the president as he rejected the election result can’t be relied on to respect the will of shareholders. Investors who value governance should ensure the revolving door stays shut.

A big Chinese backer would be roll of dice for MGM

7 January 2021

Investor Snow Lake wants the casino operator to sell 20% of its $6 bln Macau business to a local buyer. There are merits to the idea, including the edge it could provide for a new licence in the world’s biggest gambling hub. It would also, however, complicate other deals.

HSBC breakup will turbocharge CEO’s Asian pivot

30 December 2020

Noel Quinn's plan to cut costs and shift assets away from America and Europe has failed to boost the bank’s shares. In 2021 he’ll have to opt for more radical moves, like selling the U.S. retail network and spinning off HSBC’s $15 bln UK arm. A higher valuation should follow.

BlackRock stretch goal: real shareholder democracy

29 December 2020

The $8 trln asset manager votes on behalf of millions of small investors. Rather than telling companies how to handle gun safety or climate change, BlackRock might do better to pass the decision to the ultimate owners. That calls for investment in new technology, and new habits.

Guest view: China’s role in emerging economy debt

24 December 2020

Developing nations, struggling to repay loans, are being slowly locked out of credit markets. Their plight is likely to worsen. But when it comes to resolving this looming crisis, China has been largely missing in action. It should be held to a higher standard.

Guest view: Woke markets present growing dangers

18 December 2020

The politicisation, and even weaponisation, of ESG investing is a concern, argues Frank Sixt, finance director at CK Hutchison. Exclusionary strategies are too prone to populist influence and ratings are chaotic. Absent quick changes, capital allocation distortions will rise.

Unilever inches head above climate change parapet

14 December 2020

The group will follow Spain’s Aena in granting investors a say on green transition plans. As with advisory votes on pay, letting shareholders take potshots at strategy is good governance. Unilever’s scope for strife is less than would be the case in a sector like oil, though.

Rio Tinto’s CEO search just got even harder

10 December 2020

A scathing government report over the Australian miner’s destruction of Aboriginal sites calls for sweeping changes. It portends a long slog to repair the $120 bln company’s reputation. Corporate governance and climate issues add to the daunting challenges concerning growth.