panjabi

NOTE FROM THE OP: This total is most likely incorrect based on an incorrect reading of the SEC. It is highly likely that Quek Leng Chan only owns 7.3%. It is still a significant number, and one wonders why he did the purchase

Searched the forums but did not find anything.

This is a major chunk of AMR, just below the maximum allowed foriegn ownership

http://www.sec.gov/Archives/edgar/da...000001/AMR.htm


If you read the filing you will see that 8 different companies based in five different countries acquired 33.4% of the common stock of AMR on August 1, 2011.

What is interesting is that they are all controlled by Quek Leng Chan who owns the Guoco Group Limited

1. Asia Fountain Investment Company Limited, Hong Kong (AFI)
18,245,513 shares (5.4%)

2. Guoline Capital Limited, Bermuda (GCL)
2,677,334 shares (0.8%)

3. Newton (Cayman) Limited, Cayman Islands (NCL)
1,001,361 Shares (0.3%)

4. Chaghese Limited, Cayman Islands (CL)
2,468,909 shares (0.7%)

5. Guoline Capital Assets Limited, Jersey, Channel Islands (GCA)
20,922,847 shares (6.2%)

6. Hong Leong Company (Malaysia) Berhad, Malaysia (HCLM)
21,924,208 shares (6.5%)

7. HL Holdings Sdn Berhad, Malaysia (HLH)
21,924,208 shares (6.5%)

8. Quek Leng Chan, Malaysia (QLC)
24,393,117 shares (7.3%)

According to what I could find online:


"Asia Fountain Investment Company (AFI) is a controlled undertaking of GuocoEquity Assets Limited, which is a controlled undertaking of Guoco Group Limited ("GGL"). GGL is a controlled undertaking of GuoLine Overseas Limited, which is a controlled undertaking of GuoLine Capital Assets Limited ("GCAL"). GCAL is a controlled undertaking of Hong Leong Company (Malaysia) Berhad, which is owned by Gouco Group Limited."

YVR Cockroach

His family are pretty savvy businessmen. Can't imagine they're trying to become millionaires in the airline business so I wonder what the strategy is.

panjabi

What I find confusing here is how this is allowed, if this is true.

Foriegn ownership is limited to 49% of stock with no one single foriegn entity exceeding 25%

If truly all these companies are linked, then it stands in violation of current US law

Also, what exactly is the play here? Is it pump and dump?

Or is he placeholding for a buyout by some US based Venture Fund

AAsuper80

This is very interesting and a bit confusing as well, I also thought this was in violation of US regulations? How is this benefiting AMR?

FWAAA

The OP has erred; the investor and his affiliared companies have acquired 7.3%, not 33.4% of the outstanding AMR stock.

To be fair, this mistaken reading of the 13G and the accompanying theory originated in a comment to the article posted on the Street:

http://www.thestreet.com/_yahoo/stor...FREE&cm_ite=NA

Those familiar with SEC reporting rules will quickly see the error in aggregating (and thus double counting) the same shares several times.

panjabi

My apologies if I misread the SEC report. I just went from top to bottom and counted the shares.

However, I think what you are saying is that the SEC shows shared ownership?

panjabi

I think I figured it out.

They are saying that due to ownership of various companies by various other companies, the ownership of shares flows upwards to the billionaire and his main company and that company owns 7.3% in total?

Correct?

Thunderroad

Even if it's "only" 7.3 percent, that's a pretty big investment. What could it mean in terms of AA's future?

Also, OP, if you want to change the thread title you can do so by clicking "Go Advanced" after you click "Edit."

JDiver

in part...

The thread title has been changed accordingly. /Moderator

(Just don't totally confuse us and start using lakh and crore on us here, Panjabi! )

panjabi

Many thanks JDiver! You rock. Many thanks also Thunderroad for that tip. I did not know that and always wondered how to change the title

JDiver.. if you think lakh and crore are confusing, imagine the confusion if I started using arab, kharab and neel to start describing the US deficit



http://en.wikipedia.org/wiki/Indian_numbering_system

panjabi

I am curious about that too.

The scuttlebutt on most forums is that Arpey is shopping around a pre-packaged bankruptcy with TPG and Airbus consortium backing. The pre-packaged bankruptcy would:

1. Dump pensions
2. Impose new contracts
3. Dump unfavorable leases of aircraft
4. Allow exits from various unprofitable airport leases

Allegedly, Airbus and the banks who financed the recent mega buy would be protected.

Now, this investment flies totally in the face of that. Why would someone dump $75-100 million on shares that could potentially be worthless on January 9, 2012 (the date thrown around in the various rumor mills for the alleged pre-packaged bankruptcy filing)

ccengct

I wonder if Quek Leng Chan will get a free snack when he flies on American Eagle.

The Matador

What individual owns the most?

Is quek Lang chan the Asian ichan? Trying to force Arpey out?

JDiver

What it all means is Chan's your uncle. I am sure we will have a lengthy and interesting thread speculating over why a wealthy and canny businessman would buy such a chunk of AA - it's not about the olives.

SJUflyer

I think it was Richard Branson who said something along the lines of how easy it is to become a millionaire -- starting as a billionaire and investing in an airline .