Special Situations, Content Strategist, Smartkarma

Crispin Francis

Special Situations, Content Strategist

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

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Event-Driven

<ul><li>On 13 January 2017, <a href="https://www.smartkarma.com/entities/724" target="_blank" data-smartkarma-citation="entities:724:1">Golden Meditech Holdings Ltd ("GMH", 801 HK)</a> announced an offer from Magnus Opus (the "Offeror")</li><li>The voluntary conditional cash offer is at HKD 1.25/ share, conditional on 50% acceptance level being reached</li><li>Magnus Opus is 100% owned by Mr. Kam Yuen, the Chairman, CEO and founder of GMH </li><li>The offer is for all issued shares and all outstanding convertible notes of GMH other than those already owned or agreed to be acquired by the Offeror and its concert parties. </li></ul>What is most interesting is that GMH is also in the midst of selling their 65.4% stake in <a href="https://www.smartkarma.com/entities/689" target="_blank" data-smartkarma-citation="entities:689:1">China Cord Blood Corp (CO US)</a> to Nanjing Yingpeng Huikang Medical Industry Investment for USD 840m in cash. This is larger than GMH's current market cap of USD 474m. With the offer at HKD 1.25/share, there is a "free" put option on GMH and there is a chunk of cash coming in... is this a deeply under valued firm or a value trap?

On 13 January 2017, Golden Meditech Holdings Ltd ("GMH", 801 HK) announced an offer from Magnus Opus (the "Offeror")The voluntary conditional cash offer is at HKD 1.25/ share, conditional on 50% acceptance level being reachedMagnus Opus is 100% owned by Mr. Kam Yuen, the Chairman, CEO and founder of GMH The offer is for all issued shares and all outstanding convertible notes of GMH other than those already owned or agreed to be acquired by the Offeror and its concert parties. What is most interesting is that GMH is also in the midst of selling their 65.4% stake in China Cord Blood Corp (CO US) to Nanjing Yingpeng Huikang Medical Industry Investment for USD 840m in cash. This is larger than GMH's current market cap of USD 474m. With the offer at HKD 1.25/share, there is a "free" put option on GMH and there is a chunk of cash coming in... is this a deeply under valued firm or a value trap?

Nanjing Xinjiekou Department S (600682 CH)

Golden Meditech - Cash Position Will Soon Be Greater than Market Cap... But Is This a Value Trap?