Advertisement

Former investor darling stays in the wilderness

Reading Time:3 minutes
Why you can trust SCMP

TOMEI International (Holdings) is what some investors call in the business a special situation.

Advertisement

Others might call it a hopeless case, with most big brokerages in town having dropped the stock and those still watching it maintaining sells for more than two years.

For many investors the consumer electronics company blew it in the first half of 1992 when chairman Johnny Lau sold down his stake in the firm to James Ting at Semi-Tech in a cash and share-option deal worth more than $100 million in cash to Mr Lau.

In one fell swoop both men committed corporate suicide.

Mr Lau did what controlling shareholders should never do - he cashed in, allowing Mr Ting to take over as the biggest shareholder with 25 per cent of the Original Equipment Manufacturer.

Advertisement

Mr Ting apparently broke his word, say analysts. Within a few months of saying he was going to consolidate Semi-Tech's activities, a placement in May followed and then came the Tomei deal.

loading
Advertisement