Portfolio
Return to the East
Nephew Wilde
Like a knight returning from a crusade, I am again established in London. My battle for a seat on one of the newly formed county councils was lost to overwhelming forces and the electorate sadly were deprived of my services.
Happily I am glad that in my absence my trusty steward and stockbroker. Wotherspool, has not handled my affairs too badly. He obviously panicked initially by reducing my overseas holdings such as Sime Derby but this at least can be rectified. In fact, whilst 1 was away campaigning my attention was drawn to a very interesting deal involving certain Malaysian operating companies. This follows the stake taken by Haw Par, the banking group in London Tin.
As some background I should perhaps say something about both these companies. Firstly, Haw Par is the Slater-Walker Far Eastern brain-child which has widespread investment and industrial interests. London Tin Corporation is the largest public tin company in the world with activities in Malaysia, Thailand and Nigeria and it produces, along with its managed companies about 14 per cent of world tin output. Now not only does London Tin have large stakes in several quoted companies (Kamunting, Malayan Tin, South Kinta and Southern Malaya are the UK groups) but it has a stake in Crosby Fund SA, managed by Jardine Fleming. Now these are all relevant points, as well as London Tin's healthy finances. Yet the question is what will Haw Par do to tap London Tin's resources. It holds 29.2 per cent of the equity and as yet does not have a seat on the board. My guess is that under Haw Par's guidance it will make radical changes that are now overdue. For instance, it would be practical for tax reasons to reform the Malaysia operating companies into a locally quoted company and leave existing UK shareholders with a stake in a holding company. The big question mark now is how to capitalise on these developments. I am plumping for an investment in Kamunting, primarily because it is the smallest of the quadruplet and offers the best return; any deal involving this company, in which London Tin has a 25 per cent stake, should do nothing but good for the shares.
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