Do you hear your shareholders sing?

Dear Members of the Board of China Motor Bus Company, Limited (“CMB”),

You announced on 2 August, that CMB will pay a special dividend of $18 per share.

We are extremely unhappy with the small special dividend.

CMB has just received $2.4 billion of sale proceeds. On top of that, CMB has $1.6 billion of cash and bank deposits. Altogether, CMB could have paid almost $90 per share of cash.

Yet you decided to pay only $18 per share, which is a meaningless number – except that the number 18 connotes “prosperity” in the Cantonese culture, from which you distance yourselves anyways.

You are as indifferent to your shareholders, as Carrie Lam is to the people.  She has forgotten that her power is from the people, just as you have forgotten that yours is from your shareholders.

Do you hear the people sing?
Singing a song of angry men?
It is the music of a people
Who will not be slaves again!
When the beating of your heart
Echoes the beating of the drums
There is a life about to start
When tomorrow comes!

Yours sincerely,
Kin Chan
Argyle Street Management Limited