China Milk

actually it may not be a bad idea for the remaining S-Chips to restore investor confidence in the sector. The first company to over-reach and communicate with the market will be rewarded well.

China Milk intends to repurchase up to US$40mln out of its US$150mln zero coupon convertible bonds (due in Jan 2012) by way of an invitation to bond holders. The invitation to tender will commence at 9am on 31 March 2009 and will expire at 11.59pm on 1 Apr 2009. With the company's last reported cash holdings of RMB1.965bln versus the total CB value of RMB1bln, it would have no problem funding even full redemption.

However, with more capital expenditures required to be spent on their new milk processing plant, joint ventures, herd acquisitions and working capital requirements, the company has chosen to only redeem up to 26.7% of their CB. China Milk's latest move is a positive one especially amongst the wave of negative news flow surrounding the S-Chips as it shows that the company's cash holdings is real (also affirmed by management recently). - source is lim & tan securities report

Kudos to the many forumers in this thread who displayed investing intelligence, & a healthy dose of skeptism (over China Milk\'s cash pile) - and appear to have avoided falling in luv with this stock (which is now in trouble). Kudos to also the forumers who shared insights - such as the Zaobao article report on China Milk chairman building a luxury hotel for his family to live in.

This is one of the stock which i forewarned my fellow friends to avoid in novemeber last year saying it will not be able to pay the bonds and also i suspect their cash hoard. True enough their cash hoard is not able to pay the bonds. What a joke. S Shares must beware. Some more con jobs on the way. Those that said no debts also got to be careful as long as its S shares..

Aiya, you Singapore investors are so naive. Look at the sequence of events, then read between the lines in their reply to SGX. Then you will understand the real story behind China Milk. This is a tactic that the Company is using to bargain with the bond holders. The Company already make offer to buy back the bonds. Then suddenly, the CFO resigned. Then suddenly, they said they got money but cannot send outside China. You put two and two together, then you understand what the Company is doing. And I applaud them for doing this all within the legal ways. If you only read the news bit by bit, you will never get the full picture, my friends. China Milk shareholders, don\'t worry. I predict the Company will resume trading after it get a good bargain with the bondholders. Mark my words!! :laugh: :laugh:

China Milk has confirmed that it has the money to repay the convertible notes. Rest your mind, shareholders of China Milk. :laugh: :laugh: