Lowecur - Who is Rio Han, Why do We Care?

[Cardinal]

Never though I'd ask Lowecur for investment advice, but I figure he's better informed than I. I'm a little befuddled after looking at the ERJ proxy materials. What is the real motive behind this non-merger merger? Surely it's beyond "increased liquidity reulting in increased market capitalization" as stated. Secondly, who is Rio Han, there's not much material out there on them. Secondly, the voting examples offered are ugly if you're a foreign shareholder. It all smacks of BS to me, am I wrong? Vote yes or vote no?

 

[lowecur]

I normally don't get involved in the proxy voting of foreign corporations, so I don't spend much time looking them over. If I remember correctly, Rio Han is like a Holding Company for Embraer and they control about 20% of the stock privately that was not traded. I believe this "merger" of sorts will just put the stock in play and give it more liquidity. It also will give shareholders a greater say so in corporate governance, for what that is worth. I believe it also will put more capital in the pockets of Embraer.

If you are looking for more transparency from a foreign corp, good luck. I play the stock for the growth prospects and the exchange rate with the dollar, but it represents only about 5% of my holdings. Keep your investment limited based on a small portion of your portfolio.

Good Luck!

imp:

 

[Cardinal]

Thanks for the insight. I've been waiting for an "out." As soon as it hits 45 I'm gone, in the absence of anything earth-shattering. Good luck to you as well.