"Vote FOR CPDC Nominees, AGAINST Dissident LeaLea Group"
TAIPEI, June 19, 2012 /PRNewswire-Asia/ -- China Petrochemical Development Corp. (TT:1314) announced today that leading independent proxy advisory firm Institutional Shareholder Services (ISS) issued a report strongly recommending shareholders to support the current board and management team of CPDC at the company's upcoming June 27th AGM.
ISS recommends shareholders to vote FOR CPDC's 11 director nominees and AGAINST dissident LeaLea Group's nominees, stating "…the dissidents' proposal is not compelling enough to justify support for candidates with potentially conflicting interests in place of management's nominees."
Highlighting the fact that the interests of James Kuo -- president of both LeaLea and Li Peng Enterprise Co. Ltd. (a disgruntled former downstream customer of CPDC) -- conflict starkly with the interests of CPDC's shareholders, ISS noted that LeaLea "has its own financial and business interests that may be different from those of minority shareholders. A shareholder wishing to support the dissidents' proposals must weigh the risk of having directors who may be affiliated with the interests of a CPDC customer and a potential suitor to represent their interests."
In its report, ISS also stated, "In this case, the company 'CPDC' has been performing well in recent years and has outperformed many of its peers, reporting return on equity of 24.7 percent and 32.5 percent for fiscal 2010 and 2011, respectively. Management also notes that CPDC has consistently outperformed LeaLea in the past three years. Given the firm's track record, we have no significant reservation regarding CPDC management's ability to identify attractive business prospects and take calculated risks."
"We are very pleased that ISS has added its voice in support of CPDC's board and management team," stated CPDC Chairman, Ching-Jing Sheen. "CPDC has consistently outperformed both our industry peers and LeaLea itself."
For more information, CPDC shareholders can visit cpdc.com.tw, Column for Foreign Investors under Investor Relations section, or contact CPDC directly:
Ching Shian Yang
Sr. Vice President
csyang@cpdc.com.tw
+886-2-8787-8460
Gary Liu
Sr. Vice President
gary111020@cpdc.com.tw
+886-2-8787-8503
For assistance with proxy voting issues, foreign shareholders can contact CPDC's proxy solicitor Alliance Advisors:
Ted Wallace, Esq.
twallace@allianceadvisorsllc.com
+1-973-873-7717
