China Trading Stocks

[kindama]

RE:

A lot of companies could use this kind of deal structure to arb the difference between onshore vs offshore valuations.

Rather than selling 5% of the parent company (AMCN), it selling 5% of an onshore operating sub at a valuation supposedly in-line with onshore comps.

Other technology/media companies are good candidates.

Funny thing about AMCN is that I thought this was the worst part of their business and I was following it for the rollout of wifi service and the cash on hand.