Regent Fund Management says Pioneer Industries International (Holdings) is trading at 40 per cent below its net asset value, which justifies a change in the company's management and investment strategy.
In a letter sent to Pioneer shareholders, Regent, which has a 20 per cent stake in Pioneer, cited three major reasons for requisitioning a special general meeting for September 10.
Besides trading under its net asset value, Regent said inadequate disclosure in Pioneer's 1994-95 annual report and underperformance of its shares warranted changes to the company.
It said Pioneer derived most of its income from dividend payouts from its shareholding in Bangkok Bank and Wah Kwong Shipping Holdings.
'Pioneer, as a company, is not adding any value for shareholders through its selection or management of assets as the assets remain static and thus require no management,' Regent said.
It said Pioneer did not disclose its realisable asset value calculations, in particular, the holding of foreign shares in Bangkok Bank, making it difficult to estimate Pioneer's net asset value.
