(27-03-2012, 09:05 AM)Dodo Wrote: [ -> ]The fact that MD allowed payments through him already sound fishy though. And unless its a special account, or else if the funds mixed with MD's personal funds, he would be in a lot of trouble i would say. And likely that the board was not informed, or else CKP as a board member would have no ground to complain? I fear real trouble which will drive down value!
First, the direct payment to son is the accusation by father. It may not be trued.
Second, Doing business in Myanmar is not as straight forward as in Singapore. I am not surprised that some non conventional means of fund transfer is required.
Third, this is Singapore and a singapore company. A businessman of a successful business will think twice to do this kind of monkey business. There are many more legal ways to milk a company without getting into any trouble.
Business Times - 27 Mar 2012
Viz Branz exec director complains to CAD
By EMILYN YAP
VIZ BRANZ executive director and founder Chng Khoon Peng has lodged a complaint with the Commercial Affairs Department (CAD) against the beverage firm's managing director and deputy chairman, Ben Chng Beng Beng, who is also his son.
The elder Mr Chng accused his son of being involved in an 'irregular' payment arrangement with two Myanmar distributors, among other allegations.
Viz Branz received word of the CAD complaint from Chng Khoon Peng's counsel yesterday. The law firm's letter referred to another letter which Mr Chng sent last Tuesday to the Singapore Exchange (SGX) with the allegations. The earlier letter was copied to Viz Branz, its company secretary and statutory auditors.
In the letter to SGX, Mr Chng pointed to an alleged 'hitherto unknown, private and irregular payment arrangement' between his son and two Myanmar distributors of Viz Branz.
'Monies due to the company from the Myanmar distributors were paid into a third-party account operated by (Ben Chng Beng Beng) from which payment was only thereafter made from the third-party account to the company,' he said.
Mr Chng also accused Viz Branz's board of directors of condoning his son's actions. He said he 'cannot trust the board to act independently of (Ben Chng Beng Beng), nor can it be relied upon to take any action adverse to (Ben Chng Beng Beng)'.
Viz Branz countered that it had looked into the allegations and found no merit in them. It had met and explained its conclusion to Chng Khoon Peng, and made the relevant documents available for inspection. The company believes that it addressed his concerns and it also corresponded with him several times on the subject.
Viz Branz added that it is 'fully committed to clarifying queries, if any, which the Exchange and CAD may have'.
This is not the first dispute that has arisen between Mr Chng and his son. The two were embroiled in a legal suit last year in a dispute over the ownership of shares in the company. They reached a settlement before the case went to open court.
On the stock market yesterday, Viz Branz lost half a cent to close at 46 cents.
(04-11-2011, 09:48 PM)VestedInterest Wrote: [ -> ]The courtroom saga may have been settled but the boardroom saga may not be over. Can we expect more buying of shares, perhaps a fight for control of the company? I have this feeling that the share price will slowly rise from here. This is purely conjecture.
Wow this is really turning ugly. If a father is willing to put his son at risk of being jailed or fined by reporting to the CAD, there must be a lot of bad blood between the two. How sad.
I think there will be a serious fight for the company from now onwards. Wonder if the board was split on this. A 3rd party may swop in to take advantage of the situation. Again, this is just conjecture. Just hope that the running of the company and setting of strategic directions will not be affected.
There is serious accumulation in Viz Branz throughout today (29Mar12), and the price has just hit $0.50. Will the serious buyer/investor show hand soon?
Best is new party emerge to take the Co. private. I think the family is not fighting but rather playing games with the public to sell cheap? Clearly they r putting up a show and ID all not speaking up nothing - not sure why shldrs pay for ID in Spore. Worse still Chm sell stock, making ppl sell down??
I think the Co. has been making in road and to Shanghai using the coffee making machine and thus they want to take it private the cheap way - make this show. Now that ppl got con and they already have most of the stock over a two years of trading sideway?
Is there any big fund holding position large enough to question the status of father n son?
Ben Chng bought 115,000 shares on 27/3/2012 @ 0.4365.
Looks to me market is expecting some possible other parties to emerge as Ben is buying back at higher price?
If really Ben has issue with Papa, and each try to out stead the other, papa already has upper hand in nos of shares? I think the only question is - " in fighting real??"
It can easily break the 50cts wall if a 3rd party buy in to support the son!
(30-03-2012, 03:48 PM)ValueBeliever Wrote: [ -> ]It can easily break the 50cts wall if a 3rd party buy in to support the son!
Is it not conceivable that a 3rd-party interested in Viz Branz's businesses could have accumulated quite a large stake in the last 4 weeks and could be at the same time talking/negotiating with the father CKP - or even advising him? - who will emerge as the largest shareholder in Viz Branz with a stake of 38.25% upon receiving a transfer of an approx. 15% stake from the son CBB (whose stake will fall to 35.32% after the transfer) under the legal settlement between them?
The 3rd-party - possibly a trade buyer from Asia? - could be interested in the further growth and profit potential of Viz Branz's established instant cereal beverages business and promising roast & ground coffee business for the institutional market in PRC, or Viz Branz's multi-brand instant coffee, tea, and cereal beverages business in S.E. Asia, including the promising market like Myanmar?
Ben Chng continue buying!Date of transaction: 29 March 2012
Number of shares: 105,000
Consideration per share: 0.460
Date of transaction: 29 March 2012
Number of shares: 340,000
Consideration per share: 0.465
Date of transaction: 29 March 2012
Number of shares: 100,000
Consideration per share: 0.470
He looks more likely to be linked to the recent accumulation and may be showing hand soon?? Seem like the CAD report by his dad has not affected him, or is it posturing??
Logic cannot explain this company anymore...
(02-04-2012, 07:06 PM)Dodo Wrote: [ -> ]Logic cannot explain this company anymore...
My own deduction on CBB's recent purchases and the logic behind his actions is simply: (1) he still sees good enough value at $0.47/share, and (2) he does not want to lose out to others - including those known or unknown to him - who were buying at the $0.46/0.47 price level on 29Mar12.