The Romanian-born mining entrepreneur Frank Timis seems to have made more headway in Sierra Leone, rather than Australia, in winning over the local population.
Timis, who chairs the company that copped the biggest fine in London Stock Exchange history and has been blocked by the Australian Securities Exchange in the back-door listing of one of his other businesses here, has received some glowing praise in the Sierra Leonean press.
"Whether one likes the man/his methods or not, he has the capability of doing more for Sierra Leone than the ordinary man or woman can imagine," said a piece in the Sierra Express Media .
"Hopefully the 'pull him down syndrome' will shake up and wake up when they realise that they have someone in the midst of their country and corrupt government that is not just out for himself," it said of the businessman whose London AIM-listed African Resources is looking for iron ore in the country.
Timis has not allowed the ASX to pull down his Eastern Petroleum's planned reverse takeover of International Petroleum. This will result in him becoming a director and majority shareholder of the firm.
Last week the IP chairman and Perth Glory owner, Tony Sage, said he would relist the firm on the Newcastle Stock Exchange so the deal with Timis could proceed. The franktimis.com website notes how Timis "deeply regrets" his past convictions for possessing heroin.
"Frank paid his fines and has always declared in submissions to companies and stockmarkets throughout the world that he is a man with a past."
MEDIC AID
Investors burnt by the 2007 listing of RAMS Home Loans can gain comfort in knowing that a portion of their investment has gone to a good cause. The chairman of the since renamed RHG Limited, John Kinghorn, and his wife Jill have donated $25 million towards the construction of the Garvan Institute's and St Vincent Hospital's new $100 million cancer research centre. The centre, due to open in 2012, will be named the Kinghorn Cancer Centre.
"This is an example of the type of transformative philanthropy we see only seldom in Australia, and it is hard to express our gratitude adequately," said the chairman of the Garvan Research Foundation and former Qantas boss, Geoff Dixon, in the group's latest annual report.
Kinghorn pocketed $650 million from the listing of RAMS, of which some went into investing in other charity cases, such the now defunct Allco Financial Group.
The Kinghorn Centre is not the only research centre named after a rich-lister. Australia's richest man, Frank Lowy, opened The Lowy Cancer Research Centre on the grounds of the University of NSW last week. Lowy donated $10 million towards the $127 million centre.
This donation pales compared with the $40 million provided by the Star Track Express founder Greg Poche towards the world's main melanoma research centre, the Poche Centre, which recently opened in North Sydney. Poche sold his Star Track parcel business to Qantas and Australia Post for $750 million in 2003.
SONGS OF PRAISE
Why bother dealing with equity market analysts when you can get a public relations firm to do research reports on your behalf?
Last week the PR firm Bourse Communications dispatched its latest "research report" on the listed recruiter Humanis Group.
"Following the successful merger of Total Staffing Solutions and Westaff, Humanis is fast evolving profitably into a dynamic company, uniquely positioned to take advantage of future growth opportunities," the Bourse note began.
Some of the upbeat comments in the note included: "The outlook for Humanis is positive", "Profitability has improved significantly", "Humanis is now returning to growth and profitability".
The managing director of Bourse, Rod North, told CBD there was nothing wrong with his firm providing "paid research", which
it had disclosed at the bottom of each report.
"As an investor relations company, providing our clients with a full service offering, the research component is a key part of this service as it enables a company to better articulate what it actually does in a language that the market understands," North said
"We have a team of highly experienced research analysts at Bourse Communications who have acted in senior research roles in stockbroking and funds management over many years."
CBD awaits for Bourse's team of analysts to put out a sell recommendation on a stock.
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Frequently Asked Questions about this Article…
Who is Frank Timis and why is he mentioned in investment news?
Frank Timis is a Romanian‑born mining entrepreneur who chairs AIM‑listed African Resources. The article notes he has faced regulatory and reputational issues—his group paid the biggest fine in London Stock Exchange history and one of his back‑door listings was blocked by the ASX—but he is also active in Sierra Leone (African Resources is exploring for iron ore) and has publicly acknowledged and expressed regret for past heroin possession convictions, which he says he has declared to companies and stockmarkets.
What is the Eastern Petroleum reverse takeover of International Petroleum and how does it affect investors?
Eastern Petroleum planned a reverse takeover (a back‑door listing) of International Petroleum that would make Frank Timis a director and majority shareholder. The ASX had previously blocked a related back‑door listing, but Timis has pushed the deal ahead and the IP chairman Tony Sage said he would relist the company on the Newcastle Stock Exchange so the transaction could proceed. Investors should note the deal involves regulatory and listing‑venue developments described in the article.
What is African Resources doing in Sierra Leone and how has the local press reacted?
AIM‑listed African Resources, chaired by Frank Timis, is looking for iron ore in Sierra Leone. The Sierra Leonean press praised Timis, saying he could do more for the country than ordinary citizens and urging critics to recognise his potential contribution despite local corruption concerns.
How has Frank Timis's past legal history been presented to investors?
According to the article and material on franktimis.com, Timis 'deeply regrets' past convictions for possessing heroin, has paid associated fines, and states that he has always declared his history in submissions to companies and stockmarkets around the world. The article highlights this disclosure as part of his public profile.
What philanthropy came from the RAMS/Home Loans listing and why might investors care?
John and Jill Kinghorn, linked to the RAMS/Home Loans listing (now RHG Limited), donated $25 million toward a $100 million cancer research centre run by the Garvan Institute and St Vincent Hospital (to be named the Kinghorn Cancer Centre). The article notes Kinghorn received about $650 million from the RAMS listing and that some proceeds have been used for charitable causes, which the piece suggests may comfort investors who were harmed by the 2007 listing.
What other major philanthropic donations were mentioned and which research centres did they fund?
The article mentions Frank Lowy donated $10 million toward the $127 million Lowy Cancer Research Centre at UNSW, and Greg Poche donated $40 million toward the Poche Centre for melanoma research in North Sydney. These examples are presented alongside the Kinghorn donation as notable philanthropic investments by wealthy sellers of listed businesses.
What is 'paid research' and which firm produced a paid research report in the article?
The article describes 'paid research' as research reports produced by a public relations or investor‑relations firm for a listed client. Bourse Communications dispatched a paid 'research report' on the listed recruiter Humanis Group. Bourse disclosed the reports were paid at the bottom of each report, and its managing director Rod North defended the work as part of an investor relations service.
What did the Bourse Communications report say about Humanis Group and what should investors keep in mind?
Bourse Communications' report on Humanis Group highlighted the successful merger of Total Staffing Solutions and Westaff and made upbeat claims such as 'the outlook for Humanis is positive,' 'profitability has improved significantly,' and 'Humanis is now returning to growth and profitability.' The article notes this was paid research and that readers should consider the source and disclosure when evaluating such promotional reports.
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