China Animal

If you have SGD240m, will you pay 30 cts ( @ PE =15, P/B= 2.2 ) to privatise an S-Chip? The PE is likely to be even higher at end Mar 2013 . What will the share price be if the delisting is aborted  ? IMHO , the smart money have already sold out at 28.5 cts.
[hr]
[Friend 27-09-2012]:

China Animal is on the road to a delisting from SGX. The time line is before end-march 2013, if certain financing and approvals are secured. The stock has moved since the recent announcement regarding 2 funds subscribing to its shares.

Ok, so the math is at 26.5 cents currently, the stock has max upside of 3.5 cents. Max waiting period is 6 months or thereabouts. U make 26% gross on an annualised basis. The upside is that big because ..... there are risks that the delisting won't materialise.

Will you buy at 26.5 cents?

Guest, think your figures are not accurate here.  As highlighted, these fund managers r not stupid and hv their accountants and advisors to do those calc and due diligence. For your info, CAH had an after-tax profit of 223m RMB (turnover 302m RMB) in 2011, and 91.3m RMB (turnover 134m RMB) in 1H12. It's a real company with proper business. They are not privatising but will solely list in HKSE, after which the no. of shares and values will change accordingly. If you based solely on numbers alone, no one would ever invest in GSH or even Semb Marine (blue chips), the latter having PE of 14 and PB of 4.6! And many more stocks with higher PE and PB. Type of business, growth and corporate governance r also key factors. Just for info.    

I mostly agree with Kiasu. There is tremendous value in this stock. The Mr Wang just wants to list in 1 market -- HK -- and get out of SG. The 2 priv equity funds obviously know their numbers well to commit so many millions of $ to buy a stake at 30 cents per share. Or do you think the funds are run by dumbos?

repeated post

This is not a delisting. Hence, I do not see the requirement for the mentioned $240m (below) to be necessary as the company will continue to be listed in HKSE. They just need to migrate the sgp part of the shares to HK, eg some shareholders may want to migrate due to a bigger mkt n China effects. As highlighted in their report to SGS, anyone can migrate their shares to HKSE and the company will pay for the transfer expenses. I may just do that. For info.  

Wait till de next bird flu, mad cow or swine disease will we respect this type of business. For China, it's always possible, like last winter. And this business cannot collapse easily as there r support from inherent govt rules and requirements, except if it's due to poor governance. Mr Wang actually thot the stock was undervalued in sgp and hence the migration to HK. For info only.