Monday, August 31, 2015

Carlyle Flees China Fishery Board

DealStreetAsia reported:

Private equity major Carlyle Group is no longer part of the board of Singapore-listed industrial fishing company, China Fishery Group. 

Carlyle had recently declined to take part in China Fishery Group’s rights issue, and this had led to the private equity firm’s stake in the fishing company being reduced to 6.2 per cent from 11.1 per cent earlier.

This development comes even as China Fishery is being investigated by the regulators – Monetary Authority of Singapore and white-collar crime busters Commercial Affairs Department – for an offence under the Securities and Futures Act. 

On August 21, shares of China Fishery Group, fell more than 50 per cent, after news broke that the company was under investigation in Singapore and Hong Kong. A recent Bloomberg report said the probe into China Fishery Group Ltd for a securities offense had wiped out some $600 million from group shares and its US currency bonds. 

China Fishery Group, in a regulatory filing on Monday said that Carlyle’s Patrick Siewert has stepped down as non-executive director of the company with effect from 29 August, 2015.
Carlyle's press release stated when the deal was struck in 2010:

"Carlyle’s strategic investment strengthens our shareholder base and further enhances our corporate governance and social responsibility practices. China Fishery is committed to managing its activities in a responsible and sustainable manner...  In addition to the new capital that will help fuel our expansion plans, China Fishery can also benefit from leveraging Carlyle’s extensive network, acquisition and financing expertise and strategic insights. With Carlyle’s guidance and contributions at the Board level, we look forward to taking China Fishery to greater heights and delivering sustainable growth in shareholder value.”
After more than five years of governance service Patrick Siewart fled the sinking ship's board.   We'll see how strategic a move it was should more information be revealed regarding the investigation.  Carlyle's good name must be maintained. 

Update 10-28-15:  Moody's downgraded China Fishery's debt.