Ann: Strategic Review - interim update, page-2

I reckon I will have my say at this juncture.
I have been a long term shareholder of KPG from well below $1. I have a significant shareholding - a top20 shareholding.
KPGs strategy in this time has been to keep a tight capital base - it conducted a buyback and has not issued a single share since.
It has been a dividend payer, steadfastly increasing dividends at 10% per annum (this is not what shareholders asked for, this is what KPG gave).
It has issued regular 'Quality Shareholder' updates stating it wanted to attract long term shareholders.

So now the Company says:
Hey we are not going to pay dividends anymore.
Hey we are going to raise new equity in the US to expand.
Hey you Australian shareholders are not so significant anymore, we are going to list in the US (hey we will let you have a CDI)

There are many Australian companies conducting significant international operations without listing in the US.
Are KPG suggesting that the capital they require cannot be found in Aust? Who would believe that?
Are KPG suggesting that their current ASX valuation is low? Who would believe that? For a services company they are doing very well.
Is reducing dividends to zero the only option? There is something called a payout ratio, so there is plenty of room for adapting dividend policy.

Talk about a flight of fancy.
The message to Australian shareholders is that they are not quality shareholders.

No wonder the KPG share price is falling, shareholders are heading for the exit door.

Gosouth