China Animal Health

While Singapore investors have been lukewarm towards China Animal Healthcare, a top blue-blooded US investor, Blackstone, has plunged in. Buying 20 m new shares at 35 cents... Subscribed to US$40 m bonds at zero coupon, and convertible at between 28.8 cents & 40 cents. Maturity 5 years time.

“We are excited to have Blackstone, a world renowned and resourceful private equity firm as our strategic partner. We consider Blackstone\'s investment an endorsement of our Group and particularly our growth prospects. We are eager to tap on potential new opportunities made available by our partnership with Blackstone to increase our shareholders\' value. While we have no immediate cash requirements, we are planning ahead by building a war chest for potential future expansion, as we firmly believe there remains many good growth opportunities available in the market for our Company to tap into,” says Mr Wang Yan Gang (王 彦刚), Executive Chairman and CEO of China Animal Healthcare.

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“We believe the animal drugs sector in China holds tremendous promise and is expected to continue its growth momentum due to increasing meat consumption, higher animal drugs penetration and strong potential for industry consolidation. As a market leader in animal drugs manufacturing and distribution, China Animal Healthcare is uniquely positioned to capitalize on this opportunity. We are proud to partner with the Company and help play a role in supporting its future growth,” said Mr. Benjamin Jenkins, Senior Managing Director of Blackstone.

In recent times, when Peter Lim, ex remisier king, was known to have become substantial shareholder of Healthway, the stock just ran up ...... Blackstone is far far bigger than Peter Lim. Its investment in China Animal Healthcare will inspire tremendous confidence among the lesser fund managers in the region. Expect the stock to have a good sizzling run from tomorrow. HK dual listing? Wah, this will be extra dynamite

Dull day when China Animal Healthcare can\'t even manage to rise despite a topgrade name investor like Blackstone. Anyway, Kevin Scully seems to value it at only 35 cents for now. Not much upside then. Wonder what fantastic value Blackstone sees in the business.