Shareholders disgruntled over board

Several major shareholders of Convoy Global Holdings (1019) want to replace eight directors including executive director Cho Kwai-chee, who was appointed in March.

Janice Huang

Friday, December 08, 2017

Several major shareholders of Convoy Global Holdings (1019) want to replace eight directors including executive director Cho Kwai-chee, who was appointed in March.

It is believed Taiwan's Fubon Financial, which became a shareholder in 2015 and now holds a stake of around 30 percent, and Kwok Hiu-kwan, son of Kaisa Group Holdings (1638) chairman Kwok Ying-shing, are among the disgruntled.

Cho is the founder of Town Health International Medical Group (3886). Trading in its shares was suspended by the Securities and Futures Commission last month.

Information in Town Health's annual report to the end of last year and then in its interim report this year was questioned by the SFC. And Cho was involved in the penny stocks crisis affecting equities this year.

Cho, previously a doctor in Sha Tin and very active in the stock market in recent years, was said to have impressed "king of toys" Francis Choi Chee-ming.

However, Choi now wants to distance himself from Cho.

Last week, Choi denied he was a "stock partner" of Cho and said a major investment in Town Health by him was only because of persuasion by Cho after he went to his clinic when ill.

The Indian-born Cho is said to be connected to 20 board members in two organizations involved in three different industries. Moreover, there are 52 private limited companies under his name.

But he cut his holding in Convoy Global six times from March to May this year and now holds only 0.2 percent.

More interestingly, Wong Lee-man, chairman of Convoy Global, has also been reducing his holding since 2015 and now holds only 1 percent.

Wong is a noted marathon runner who famously took part in the Antarctic 100-kilometer race in 2015. And he not only took third place but also became the first Hong Kong runner to ever cross the line.

Town Health became a shareholder of Convoy Global in 2013 while Yang Financial Holdings (0397) and Fubon Financial became shareholders in 2015. The same year, Convoy Global launched a rights issue at a big discount.

Wong invited Daniel Chong Wai-chung to be chief executive of Convoy Global last year. That was after Chong quit as chief executive of department store chain Yata.

Chong suffered a heart attack last year and was away from his desk for a while but has recovered.