from the australian

Now we know why it is price sensitive. Down !

Wah Nam whammy

WAH Nam International's struggle for some sort of local credibility has been dealt a blow with revelations that the bloke at the heart of it all, Luk Kin Peter Joseph, has been dragged into an inquiry by Hong Kong's anti-corruption cops.

The mainland Chinese limo operator turned Pilbara iron ore miner confirmed yesterday that Hong Kong's Independent Commission Against Corruption had called on Luk to "assist them in their investigation" of an issue that apparently pre-dates his appointment as chairman and executive director of the plucky investment house.

Wah Nam's local people said yesterday that Luk had no plans to stand down as chairman but that they could tell us no more about the nature of the investigations he is assisting or the events that may have triggered ICAC's interest.

It is suggested, though, that the investigation is focusing on events in the reasonably distant past. Now, an online tour of Luk's commercial past identifies but one slightly odd incident. In July 2007, he stepped down as an executive director of another Hong Kong listed mainland company, China Mining Resources Group. The statement marking Luk's departure "confirmed he has no disagreement with the board and there is no matter relating to his resignation that will need to be brought to the attention of shareholders".

Whether or not this is the kernel of Luk's problem, who can say. What is certain, though, is that this news will do nothing for Wah Nam's reputation in this market.

Wah Nam is a subject of interest here because of its somewhat controversial tilt for Brockman Resources, an iron ore play with real potential that could yet be a player in the continuing consolidation of the Pilbara's junior players.

What was so surprising about Wah Nam's success was that it used its own very recently listed Australian equity as currency for the bid. What made it controversial was that the target believed Hong Kong-based friends of Wah Nam played a role in engineering the shift of control in Brockman.

The Takeovers Panel ultimately rejected an invitation to intervene on the basis that it could not trace the connections between Brockman's less than sticky Chinese shareholders and Wah Nam's board or management.


http://www.theaustralian.com.au/business/opinion/bhp-is-on-the-road-to-olympic-glory/story-e6frg9lx-1226167115587