Corporate Governance

Danone board gets much-needed upgrade in a Schnepp

29 July 2021

The $46 bln dairy group’s chairman will replace nearly all its directors in two years, drawing a line under years of misses, crummy governance and underperformance. Adding more consumer-goods expertise and international heft should help narrow Danone’s chunky discount to peers.

Chinese duty-free giant’s share sale is well timed

13 July 2021

China Tourism’s Hong Kong secondary listing plan spotlights the $90 bln company’s unique strengths. State ties help, as do favourable policies in tropical getaway Hainan. Hefty proceeds will give it a war chest to expand overseas and challenge rivals like Switzerland’s Dufry.

Review: The dark side of stakeholder capitalism

9 July 2021

Arif Naqvi promised to make money while doing good in emerging markets. But he treated his Abraaj private equity group’s cash as his own, pocketing $780 mln. “The Key Man” tells how he hoodwinked the likes of Bill Gates and TPG. It’s an overdue reality check for impact investing.

Capital Calls: U.S. jobs, Fitness IPO

7 July 2021

Concise views on global finance: U.S. employment vacancies tip scales towards workers; Mark Wahlberg-backed F45’s IPO values it at twice what an attempted SPAC deal did last year, justifiably.

Green goals will milk more Kiwi-like finance fixes

6 July 2021

New Zealand needs 13% fewer cows to help hit emissions targets. That lends urgency to dairy giant Fonterra’s plan to restructure its cooperative as farms grapple with environmental crises. Suppliers and their balance sheets will be a key battle front in the war on climate change.

Russian miner is gold standard in governance chaos

1 July 2021

London-listed Petropavlovsk kept CEO Denis Alexandrov even after shareholders blocked his appointment to the board. It follows extended battles between investors that pummelled the $1 bln group’s shares despite a buoyant yellow metal. The latest twist makes a recovery doubtful.

Chinese grocery apps risk spoiling early

28 June 2021

Missfresh shares fell 26% on their New York debut, a worrying sign for rival Dingdong Maicai’s upcoming listing. Price wars and logistics costs have crushed margins and e-commerce giants are muscling into the sector. Joining forces may give both a better chance of survival.

Geely’s reversal clears way for STAR takeoff

28 June 2021

The Chinese carmaker dropped plans to list on the technology growth board citing “strategic adjustments”. Chances are strategy was adjusted by the government, which wants to prevent STAR from being overrun by mature giants. That’s mixed news for Syngenta, also in the queue.

Toshiba chair ouster risks strategic hold-up

25 June 2021

Shareholders have voted out the $20 bln conglomerate’s respected board chair in one of Japan’s biggest-ever corporate upsets. Yet toppling Osamu Nagayama, whose tenure post-dated the latest scandal, causes confusion and could delay the reforms sought by aggrieved investors.

China’s prolonged credit-scoring saga amasses risk

24 June 2021

Ant may be trying to wriggle out of a co-op with rivals by forming a venture with state-owned companies. That would be better for the fintech giant, but not necessarily for the public. As consumer debt grows, Beijing’s inability to devise a decent system wastes precious time.

Capital Calls: Schwarzman’s double tax speak

23 June 2021

Concise views on global finance: The founder of Blackstone has a love-hate relationship with capital gains changes.

Chinese buyout provides instructive exit interview

22 June 2021

After months of talks, Japan’s Recruit is backing a $5.7 bln privatisation of employment portal 51job. Growth is patchy while rival Kanzhun’s shares have soared following its IPO. It’s a timely reminder of the occupational hazards for investors in U.S.-listed Chinese companies.

China’s education crackdown flunks economics

21 June 2021

Tougher rules on tutoring services are hammering shares of TAL, Gaotu and others. The country’s manic competition for school admission distorts the labour supply and suppresses the birth rate. It’s a byproduct of a widening wealth gap, however. This approach could make it worse.

Toshiba’s scandal-hit board is on borrowed time

17 June 2021

The $20 bln Japanese conglomerate sacrificed just two directors after an inquiry judged insiders colluded with government officials to block activists. Yet all the top brass are tainted by association. Transparently phasing in their replacements would help rebuild investor trust.

Capital Calls: Platinum Equity, FTC chair, Tui

16 June 2021

Concise views on global finance: The buyout firm acquires textbook company McGraw Hill and the maker of Singer sewing machines; Joe Biden’s pick for the Federal Trade Commission brings swagger; and another capital hike will still leave the German holiday group heavily indebted.

Capital Calls: Corporate America blowback

15 June 2021

Concise views on global finance: An investor lawsuit against Trump-era rules on shareholders' proposals is the latest sign of the tables turning.

Beijing finally gives China shorts a helping hand

15 June 2021

Central government crackdowns and the collapse of U.S.-based fund Archegos have delivered selective relief to investors betting against Chinese companies listed in New York. Caution is warranted as outbound investment quotas ease. Patriotic reinforcements are on the way.

Toshiba mess will be useful national embarrassment

10 June 2021

An independent probe found the $20 bln Japanese conglomerate sought to subvert shareholders in conjunction with the government. The findings intensify pressure for a sale, bolster the broad case for activist investors and should kick Japan’s governance changes into higher gear.

Friends-turned-foes set China’s UPS on new route

9 June 2021

The $51 bln SF has long thrived alongside e-commerce giants. But boss Wang Wei is now under siege as the likes of JD expand their own logistics. Plans to raise new equity and spin off a subsidiary, among other things, should help it bulk up against deep-pocketed web rivals.

China’s Evergrande headache turns into a migraine

9 June 2021

Beijing wants lenders to stress-test their exposure to the developer, Bloomberg reports, which owes over $100 bln. In focus is troubled Shengjing Bank, but its tentacles stretch into larger institutions. With traders already anxious, a misstep by either side could upend markets.