a-letter-from-david-webb

A letter from David Webb

David Webb, the shareholder activist responds to yesterday''s article on Boto''s proposed LBO by Carlyle Group.

Dear Editors,

Regarding the article yesterday on the proposed LBO of Boto, it will not succeed on its current terms.

Actually the leisure furniture business is not pretty negligible - they sold about HK $182m based on H1 orders in hand at 30-Sep-01 for the year just ended 31-Mar-02. That is more than double the previous year's sales of HK$81.7m.

The HK$182m compares with festive products xmas trees and decorations of HK$828m in the year to 31-Mar-01 and maybe HK$950m in the year to 31-Mar-02. So leisure furniture is already running at about 20% of sales and growing rapidly. That's the growth engine, and there is no way will minority shareholders...

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