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Regal Partners Ltd V.RPL


Primary Symbol: VGIPF

Regal Partners Limited is an Australia-based company, which operates as specialist alternatives investment manager. The principal activity of the Company is the provision of investment management services, specializing in alternative investments. It is engaged in managing a diverse range of investment strategies covering hedge funds, private markets, real and natural assets, and capital solutions on behalf of institutions, family offices, charitable groups and private investors. The Company has seven alternative investment management businesses: Regal Funds Management, PM Capital, VGI Partners, Taurus Funds Management, Attunga Capital, Kilter Rural, and Merricks Capital. The Company operates offices across Australia, Asia, United Kingdom/Europe, and North America.


OTCPK:VGIPF - Post by User

Post by InvestorSuperfanon Dec 23, 2013 1:22pm
289 Views
Post# 22033790

My Opinion

My Opinion1) Members of the current Board claim that they can't buy shares in RPL because they are Board members and, given the current status of the company, cannot buy shares. Could they not have purchases shares BEFORE becoming Board members? I like Board members who have skin in the game, not simply collect salaries, etc. from shareholders while their personal net worth remains unaffected if the RPL share price goes down (which it has, considerably, since the new Board members took their positions with RPL - not saying the share decline was their fault - just that they are still getting paid and are unaffected by the change in share price). 2) If nothing else, FrontFour has at least compelled the Board to provide more information than they have in the past regarding what's going on at the company. Nothing like the threat of losing your job on a Board to stimulate communication with shareholders. 3) I'm not sure how members of FrontFour, if gaining control of the Board, would want to / be able to put the interests of their Hedge fund over the interest of Renegade shareholders? I assume as Board members they would be prohibited from shorting the stock. They collectively own 5 - 8% of the total number of shares, so increasing shareholder value would seem to me to be in their best interest, at least moreso than the current Board members who have little / no shares in the company. 4) Did I miss something, or did the RPL circular explain why they allowed then CEO Michael Erickson to apparently take the heat at the AGM on Sept. 27, 2013 for RPL's problems (I was not present at the AGM, but it is my understanding that Mr. Erickson was the one answering the questions from shareholders), only to be removd him from his position 12 days later (Oct. 9, 2013) combined with the announcement of major changes in personnel at the company? Is this just a coincidence, or did the new Board members not want to be in place at the AGM to field questions as to their vision of the path forward? Of course, I have no way of knowing if FrontFour would do a better job than the current Board in improving the earnings, cash flow, financial stability, and ultimately the share price (selling price per share) of the company, but I think it's worthwhile to have both sides present their arguments to shareholders and hold a meeting where the existing Board is compelled to make their case for staying in their current positions.
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