YaSheng Group (HERB)

[Helium-3]

An exchange btwn RD and SemiDutch (2 unrelated shareholders) over on Yahoo MB:

It's not a merger with the parent company.
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Gansu Yasheng Salt Group is the parent of HERB. It's also the parent of Gansu Yasheng Industrial Group (listed in Shanghai). Those two will be merged, not the parent company. IOW, we will get a listing in Shanghai, probably. And we will keep the listing on OTC because they want to expand in the US.

Now, if they merge it on a 50/50 basis (which would normally be a rip off for us, because HERB is a lot bigger), assuming the market cap doesn't go down (there is no reason for it) then the combined entity (of which we own 50%) would be worth $20.78/share .It's easy to do the math once you recognize the fact that Gansu Yasheng Industrial Group has a market cap of RMB 20 billion. That value will be reflected on OTC, once people wise up.
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To clarify, your HERB shares would be worth $20.78/share.
More, if we get a bigger than 50% stake.

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1 Reply to realdutch01

semidutch • 16 hours ago

Reply
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Unfortunately, realdutch, you are wrong. HERB will merge with a 100% owned subsidiary of Gansu Yasheng Salt which will provide the ample water resources that HERB is lacking, but no juicy listing in China. It should be a good deal for us because it is clearly stated in the 10K that, apart from improving earnings potential, a main goal of the merger is to accelerate the listing of the combined entity on a main board. Less

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1 Reply to semidutch

realdutch01 • 16 hours ago

Read it again. They are exchanging (combining) land with Gansu Yasheng Industrial Group. That's the Shanghai listed entity which is controlled by Gansu Yasheng Salt.

There is no other way they can speed up listing on a senior exchange.

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1 Reply to realdutch01

semidutch • 4 hours ago

Here is the text of the 10K (p 15): "...recombine the efficient agricultural resources which is rich in water resources being operated by the wholly-owned subsidiary, Gansu Yasheng Agricultural, Industrial and Commercial Company of the major shareholder Gansu Yasheng Salt Group ..." As you see, no listing here

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1 Reply to semidutch

realdutch01 • 2 hours 55 minutes ago Flag

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The issue here is, who is "Gansu Yasheng Agricultural, Industrial and Commercial Company" ?

Try to Google it. I know that Gansu Yasheng Industrial Group is majority owned by Gansu Yasheng Salt Group (our parent).

I'm saying, it's the same entity. And there will be a Shanghai listing coming from this for HERB shareholders.

Any other theory will have a few big holes in them. But be my guest and give it a shot.