Drifting Along, But Business Holding Together

Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

Event-Driven

IKang Healthcare Group (ADR) / Event-Driven

<p>Meinian Onehealth has withdrawn its US$25/ADS bid to acquire iKang (announcement to the Shenzhen exchange attached), leaving Alibaba-backed Yunfeng Capital's US$20-25/ADS bid as the only offer on the table.  </p><p>With the shares trading at US$19.57, the biggest risk is a final bid at the low end of the range (the "meh" in our title) combined with the length of the timetable for closing the deal.  There are strong arguments for a final bid in the upper half of the offer range, but we cannot ignore the…</p>

Meinian Onehealth has withdrawn its US$25/ADS bid to acquire iKang (announcement to the Shenzhen exchange attached), leaving Alibaba-backed Yunfeng Capital's US$20-25/ADS bid as the only offer on the table.  With the shares trading at US$19.57, the biggest risk is a final bid at the low end of the range (the "meh" in our title) combined with the length of the timetable for closing the deal.  There are strong arguments for a final bid in the upper half of the offer range, but we cannot ignore the…

Meinian Onehealth Healthcare H (002044 CH)

It's Alibaba's Game Now: "Meh" Is Possible