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Sky-mobi Limited (MOBI) Message Board

  • unemon1 unemon1 Jun 15, 2013 12:08 AM Flag

    Does the CEO want to regain Control of the Company after the Internal Restructuring?

    Recently the CEO & Founder (Michael Tao Song) of MOBI lost control of the Company and became a minority Shareholder (

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    • Recently the CEO & Founder (Michael Tao Song) of MOBI lost control of the Company and became a minority Shareholder ( smaller than 25%)

      This happened because of an internal restructuring contemplated by Mr. Song and Xplane (The SC 13D was filed April 8, 2013)

      Immediately prior the Internal restructuring Tao Song had shared voting power over 143,961,648 common shares, representing 55.9% of Class.

      The Internal Restructuring caused Tao Song's shared voting power to decrease to over 50, 647, 288 Common Shares, representing 20.0% of Class.

      Having an ownership in the Company

      • 1 Reply to unemon1
      • Recently the CEO & Founder (Michael Tao Song) of MOBI lost control of the Company and became a minority Shareholder ( smaller than 25%)

        This happened because of an internal restructuring contemplated by Mr. Song and Xplane (The SC 13D was filed April 8, 2013)

        Immediately prior the Internal restructuring Tao Song had shared voting power over 143,961,648 common shares, representing 55.9% of Class.

        The Internal Restructuring caused Tao Song's shared voting power to decrease to over 50, 647, 288 Common Shares, representing 20.0% of Class.

        Having an ownership in the Company smaller than 20% implies many disadvantages due to the anti-takeover provisions included in the Articles of Association: "... In addition, our shareholders holding, in aggregate, less than 25% of the paid up capital of our company do not have the ability to call general meetings or to propose special matters for consideration at such meetings."

        Starting May 2013, someone has started to accumulate call options with a strike Price of $2.5 (about 8,845 contracts), acquiring therefore the right to buy as much as 884,500 ADS (corresponding to 7,076,000 common shares) at or before Expiration. This equals to about 2.80% of class.

        Concurrently, someone has also been accumulating ADS on the Open Market (causing the PPS to increase by almost 100%).

        The buying activity started after the release of the Unaudited 4Q results (nothing exceptional to justify a 100% increase in the PPS), namely after the end of the Quite Period (when directors / related parties are not allowed to trade)

        My guess is that someone is accumulating Shares on behalf of the CEO and Founder of the Company to help him getting above the 25% threshold again!

 
MOBI
4.09+0.21(+5.41%)Dec 24 1:00 PMEST

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