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  "docSlug": "f3f23ae4a447",
  "documentTitle": "Bank of East Asia, Limited (0023.HK)",
  "authorId": "02_Elliott_Management",
  "authorName": "Elliott",
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  "presentationDate": "2016-02-04 00:00:00",
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  "notes": "The slide uses a list-based argument structure to build a case for management failure.",
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      "text": "BEA shareholders have long suffered from poor returns as a result of an entrenched executive management team which has mismanaged the business",
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      "text": "Note: 1. BEA is the third largest bank... 7. Based on Hong Kong banking takeover transactions...",
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      "kind": "list",
      "text": "In stark contrast, the series of dilutive BEA share placements to CaixaBank and SMBC and the related “strategic” agreements have resulted in substantial EPS dilution and made a change of control over BEA without management consent highly unlikely.",
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      "kind": "list",
      "text": "Most other family-run Hong Kong listed banks which were not able to compete effectively were able to provide an opportunity for shareholders to realise a proper return by selling their shares at a significant premium into a takeover offer (avg 2.0x book).",
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      "kind": "list",
      "text": "Despite BEA having an extensive banking platform in the Greater China region, it has achieved a total annualised return of just 2.7% since 1997. This compares with: 8.6% for leading Hong Kong listed banks; 12.8% for family-run Hong Kong listed banks.",
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      "text": "BEA's Hong Kong banking business records one of the lowest ROA and ROE among the leading banks in Hong Kong, due to weak operating performance. BEA's China banking business has a meaningfully lower ROE than its China peers (3.7% vs 6.0% in 2014).",
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      "text": "BEA has underperformed Family-run HK Banks on TAR over the past, 1, 3 and 5 years by 28.1%, 28.8% and 13.1%, respectively",
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      "kind": "list",
      "text": "BEA has failed to demonstrate that it can remain competitive and generate healthy returns for shareholders as an independent bank in Hong Kong, where the best performing banks are backed by large foreign or PRC financial institutions",
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      "text": "Total Annualised Return: 2.7%",
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      "text": "BEA shareholders have long suffered from poor returns as a result of an entrenched executive management team which has mismanaged the business",
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