HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Over 15 years' experience in both finance and healthcare, covering clinic operations, investment and equity research in both China and overseas.

China TCM (570.HK) Privatization Update - Investors May Need to Prepare for a Longer Wait

CPMC Holdings (906.HK) - ORG Can't Afford to Lose, But Baosteel Is a Step Ahead

Asia Cement China (743.HK) Privatization- There May Be "Surprises" Despite Disappointing Offer Price

Event-Driven

<ul>
<li>ORG purchased 27% of CPMC's shares at HK$6/share in 2015.After about eight years, Baosteel's Offer Price was only HK$6.87/share. The annualized return rate was low, which obviously cannot satisfy ORG.</li>
<li>Baosteel and CPMC have been in talks for a long time - There may have been some "tacit agreement" between the two parties. The approval process is smooth so far.</li>
<li>For acquisitions/consolidation between SOEs, private enterprises usually have limited chances of winning.ORG has financial pressure and the approval process face uncertainties. There would be more negotiations among CPMC, ORG, Baosteel.</li>
</ul>


ORG purchased 27% of CPMC's shares at HK$6/share in 2015.After about eight years, Baosteel's Offer Price was only HK$6.87/share. The annualized return rate was low, which obviously cannot satisfy ORG.
Baosteel and CPMC have been in talks for a long time - There may have been some "tacit agreement" between the two parties. The approval process is smooth so far.
For acquisitions/consolidation between SOEs, private enterprises usually have limited chances of winning.ORG has financial pressure and the approval process face uncertainties. There would be more negotiations among CPMC, ORG, Baosteel.


Shanghai Baosteel Packaging-A (601968 CH)

CPMC Holdings (906.HK) Privatization - Some New Information Worth the Attention