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) Update - Behind The Share Price Plunge and Prospects for Privatization Progress

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

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

Asia Cement (743 HK): $3.22/Share Offer - Really?

Event-Driven

<ul>
<li>Since all the Pre-Conditions have been fulfilled, Baosteel has taken a solid step towards the successful acquisition of CPMC. Comparatively, ORG could encounter resistance and uncertainties in the upcoming process.</li>
<li>The acquisition of CPMC by ORG cannot be completed by ORG and Zhang Wei alone.Without the “nod” of COFCO/SASAC, what ORG's going to do is equivalent to a “hostile takeover”. </li>
<li>ORG's acquisition of control of CPMC could go against the national strategy of "building strong alliances between SOEs". In fact, what ORG wants is for Baosteel to raise its Offer.</li>
</ul>


Since all the Pre-Conditions have been fulfilled, Baosteel has taken a solid step towards the successful acquisition of CPMC. Comparatively, ORG could encounter resistance and uncertainties in the upcoming process.
The acquisition of CPMC by ORG cannot be completed by ORG and Zhang Wei alone.Without the “nod” of COFCO/SASAC, what ORG's going to do is equivalent to a “hostile takeover”. 
ORG's acquisition of control of CPMC could go against the national strategy of "building strong alliances between SOEs". In fact, what ORG wants is for Baosteel to raise its Offer.


Shanghai Baosteel Packaging-A (601968 CH)

CPMC Holdings (906.HK) Privatization Update - The Story Behind the Delay of Offer Document Despatch