25-02-2012, 12:50 AM
hi d.o.g.
insightful comments. I am just wondering - there don't seem to be any specific indication (or have i missed it) of a dual appointment of the CEO?
insightful comments. I am just wondering - there don't seem to be any specific indication (or have i missed it) of a dual appointment of the CEO?
(25-02-2012, 12:19 AM)d.o.g. Wrote:Musicwhiz Wrote:This is good leadership renewal in place.
My reading of it is that it is not a renewal but a consolidation, effectively a removal of Vicom's CEO post by combining it with a ComfortDelgro appointment. It saves ComfortDelgro a big paycheck. Sim Wing Yew started as a GM of 2 workshops in SBS Transit, then GM of all 5 SBS workshops, then COO and finally CEO of ComfortDelgro Engineering. Vicom is a comparatively small portfolio compared to being CEO of CDG Eng. In fact, looking at the CDG Annual Report it is clear that Sim is holding possibly the most important job in the Group - making sure the buses are operationally ready.
I suspect that as Vicom management retire they will replaced by CDG management who are already holding other appointments. Eventually there will be no Vicom-only managers, only CDG managers holding dual appointments. Then it will be simple for ComfortDelgro to privatise Vicom. No senior managers in Vicom will lose their jobs after the privatisation (since they have other roles in CDG), so there will be no resistance at Vicom. My guess is either a straight cash offer, CDG shares (at a discount to encourage taking scrip), or some combination of the two.
This privatisation will not happen so soon, especially given Vicom's high share price (unless CDG's price goes up even more). But it is the logical thing to do for CDG. "Cost savings" is a great excuse. After all Vicom is tightly held, there is no liquidity, they have never raised funds from the market since IPO, etc. So enjoy your dividends while you can.