China Animal

Still talking about this stock?
So many experts including Mr Scully talked about this Company and its delisting plans.
But if you really do your homework and read up on the rules behind a GO in Hong Kong Stock Exchange, you will realise that it is near impossible for CAH to delist in Singapore.
I rather stay away from this type of management.
 
 

Mr Market is always right.
There is a reason why the share price never traded closer to the delisting price.
Let's wait and watch the good show.
 
 

Breakthrough achieved by CAH. Two private equity funds will provide part of the cash for the Delisting Offer. They are :  Themes and SEB Listed PE Fund, which will cough up an aggregate of S$47,741,718.60.

After the issue of the new shares and conversion of warrants, CAH’s Chairman and major shareholder Wang YG’s shareholding will fall from 53.3% to 48.5% while Themes’ will be 8% and SEB will be 1.1%.

 Since CAH’s announcement of a possible de-listing of the company’s shares from SGX on 22 May ’12 (at 30 cents) which resulted in the stock having jumped from 23 cents to 28.5 cents (in June ’12), it has since been weakening and closed at 25 cents yesterday.

 This is likely due to investors getting tired of the rather long wait and limited news since then.

 Assuming the company wants to privatize at 30 cents and excluding Wang YG’s 53.3% shareholding, the company would still need about S$240mln and the latest fund raising of close to S$48mln would still fall short by quite a bit.

 Given the still many uncertainties, we believe investors are unlikely to bid the stock up anywhere close to the possible de-listing offer price of 30 cents.

 Anywhere close to the 30 cents level would be a selling opportunity.

source: Lim & Tan Securities, 26 Sept .

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?

The other Q to ask is whether the 2 funds, with a slew of accountants and analysts with them, are willing to part with nearly $48mil if they do not see value of 30cts per share in CAH? In other words, they must have confidence in the company in order to buy the shares at this price. Knowing how they work, most will really depressed the price if the other party is desperate. Hence, I think the value is there and ppl will come on board soon. Good luck!