This stock is one of a kind – forced to advertise (loudly) its delisting intention…. The market not stupid, now buying the stock cos it is truly undervalued and the offer price has to be above 35 cents. imho
This whole saga seems like a joke to me.
My logic tells me that NO smart management would show their trump card so early before the real action. It seems that the management is just trying to pacify some existing shareholders.
Shareholders of this Company, be prepared to be disappointed.
MacGyver, I disagree with your view. In the first place, CAH was 'forced' to make the announcement to SGX after Straits Times ran an article on speculation of a delisting.
CAH has been under pressure too from investors and others who have been calling CAH to inquire. I would say CAH knew it was in good corporate governance spirit to make an announcement. I believe the CAH bosses are pissed that the stock is so under-appreciated in Singapore. Reminds me of Time Watch -- they die die wanted to get out of SG listing and they did!
Hate to be a party pooper, but I tend to agree with MacGyver. The PE is 10X at 29 cts, so how can this be cheap for a small cap S-Chip at a time like this? Besides, don't think they have the money to make an exit offer from SGX , so don't hold your breathe. CAH or SGX should clarify the necessary requirements for SGX delisting so that investors are better informed.
relaxing, well, you are right in a sense that CAH is not so cheap like at 5X PE. However, u should also see that it has rock-solid investors like Blackstone & Goldman which reflect well on its corp governnace and its business potential. In addition, CAH delisting offer (if and when it comes) will have a fantastic upside fr current price of 28.5 cents because SGX's "no objection" to CAL's potential delisting is subject to controlling shareholders abstaining from voting at the EGM.
This means that it will be more difficult to achieve the "75% present and voting in favour of the delisting" criteria at the EGM without controlling shareholders' vote (promoters have approximately 53%).
The exit offer price needs to be attractive to win over the independent shareholders in order to fulfill the "75% voting in favour" threshold. Also the EGM must fulfill the criteria of not more than “10% voting against” the delisting.
Last 2 pars are from DBS Vickers' report: [url=http://www.nextinsight.net
/story-archive-mainmenu-60/912-2011/4520-china-animal-delisting-offer-to-be-attractive-]CAH delisting offer to be 'attractive', [/url]
China Animal Healthcare is on the list of Kim Eng 's speculation of privatisation plays. U can see the reason given by Kim Eng in the report : [url=http://www.nextinsight.net
/story-archive-mainmenu-60/912-2011/4405-kim-engs-privatisation-list-why-flee-from-china-minzhong-]Kim Eng's privatisation list; CHINA MINZHONG is deep value; UTD ENVIROTECH is a buy [/url]
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