Most will not migrate their shares to HKSE as they are hardly traded there ( check with your brokers ). In the event this exercise is aborted, everyone will rush to sell as the average S-Chip PE is at most 5X. How can you get out in time then?
from what i believe, CAH is still in talks with others funds to take up placement, or banks loans to finance the delisting..The chairman has been in talks with various party since May 2012 and manage to convince 2 funds, at the moment and raise $47million.Once more funds comes in, share price will go up. Support found at 0.265 at the moment. But at the moment, things look promising for CAH investors.Since interest rate is so low, bank loans may be the easiest but last option.
26 Sep 2012 10:03 Market News (Infocast News) In relation to the possible voluntary delisting of its shares from the SGX-ST, China Animal Healthcare (00940) said that, on 25 September 2012, it entered into a conditional subscription agreement with Themes Dragon International Limited (Themes) and SEB SICAV 2 - SEB Listed Private Equity Fund (SEB Listed PE Fund) pursuant to which: Themes conditionally agreed to subscribe for 46.606 million subscription shares at the issue price of S$0.3 per subscription share and 93.126 million warrants for nil consideration with an exercise price of S$0.3; and SEB Listed PE Fund conditionally agreed to subscribe for 6.473 million subscription shares at the same issue price and 12.934 million warrants for nil consideration with the same exercise price. The issue price and exercise price represent a premium of 19.95% to the volume weighted average price of S$0.2501 for trades done on the shares on the SGX-ST on the day before 26 September 2012. The subscription shares and warrants issued to Themes would equal 7.98% of the issued share capital of China Animal Healthcare assuming exercise of all warrants. The subscription shares and warrants issued to SEB Listed PE Fund would equal 1.11% of the issued share capital of the company assuming exercise of all warrants. The aggregate amount which will be raised from the subscription if the conditions are satisfied would be S$47.742 million. The money raised from the subscription would be primarily used to partly fund the possible delisting offer. Any remaining amounts will be used for working capital and/or expansion purposes. Themes is incorporated in the British Virgin Islands, and is wholly-owned by Themes Investment Partners II, L.P., which is a private equity fund. The fund focuses on and invests primarily in PRC related healthcare, agriculture and environmental industries. SEB Listed PE Fund is a sub-fund of SEB SICAV 2, which is a Luxembourg openended investment company with variable share capital. The sub-fund invests in publicly listed companies and is managed by SEB Private Equity, the private equity arm of Skandinaviska Enskilda Banken AB (publ) (SEB).
By being able to convince two funds to invest in CAH at 0.30, this CAH chairman must be confident of his business and enjoy good reputation. Not any tom , dick, henry can enjoy this type of good reputation. or else the financial experts of the 2 big funds companies are biggest dumb.
Apparently, China Animal has to make a similar delisting offer to HK investors, not just SG investors. Can someone point out to the company (assuming it is not aware of it)? If it is aware of it, how come it has not made the offer to HK side?
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