Post by
Stupida on May 25, 2022 5:59pm
Re-domiciliation to Singapore
I am long these shares, but is anyone concerned that the company is moving to a lower reporting and compliance jurisdiction? Why not?
As per announcement:
Verde is currently domiciled in the United Kingdom, a country with which it has no other business connection beyond its incorporation address and the relatively high costs of reporting and compliance under local regulations. Verde is also aiming at an increased access to a wider commodities market for its products. Furthermore, the United Kingdom bars companies from making any type of payment to shareholders while there are no distributable reserves available in the parent Company.
Comment by
MuttleyKnows on May 25, 2022 11:00pm
I wouldn't be too worried. Singapore is not Panama. Singapore is one of the largest financial centres in Asia. Their SGX is major stock exchange. Just watch CNBC or Bloomberg and you will see. It is where many multinationals locate their regional Asia headquarters.
Comment by
KirklandX on May 26, 2022 2:11am
My understanding is the move is 100% driven by tax efficiency.
Comment by
topdop on May 26, 2022 8:59am
Incorrect. The current regulatory jurisdiction precludes NPK making divvy distributions and/or buying back shares before certain financial and balance sheet reg hurdles are are met. NPK simply will be unable to achieve these accounting measures AND adopt and deliver the Paid for Growth path were they to remain UK domiciled.
Comment by
Stupida on May 26, 2022 9:41am
What is incorrect? I am only taking words from their own announcement. Less scrutiny is cause for concern