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Saturday, April 28, 2012 11:22:32 PM
WH $1.12- You either believe the $3.00 tender offer or you don't. No other seemingly legit offer trades at this much of a discount.
After switching auditors to the no-nonsense Malone Bailey that uncovered several ChiFrauds and abandoned other China clients, it was announced that a special committee was formed to evaluate take private transaction at split adjusted $3.00. Much like other legit tender offers, the company is under-performing ahead of the transaction.
From the Q4/2011 Earnings Release, we see they are proceeding as any serious company would when going looking to acquire all outstanding shares:
http://finance.yahoo.com/news/wsp-holdings-announces-fourth-quarter-120000835.html
Recent Business Development
The Company has recently engaged Houlihan Lokey (China) Limited as the financial advisor to the Special Committee of its Board of Directors in relation to the non-binding proposal received from H.D.S. Investment LLC ("HDS") indicating HDS's interest in acquiring all outstanding shares of the Company in a possible going-private transaction for $3.00 per American Depository Share in cash, subject to certain conditions. The Special Committee, working with its advisors, has not set a definitive timetable for completion of its evaluation and does not currently intend to announce developments unless and until a definitive transaction or strategic option has been approved.
Crocker Coulson led the conference call on 4/19 so we know IR is still engaged.
Unlike tender offers from domestic China companies that proved a sham, this company has a global footprint that will likely be expanded with new product launches in 2012 (save the profit catalysts until after going private). View the July 2011 Investor Presentation.
http://media.corporate-ir.net/media_files/IROL/21/216706/WSP_Investor_Presentation_July_2011.pdf
10-K also tells us they feel confident with international expansion plans.
While chart may be bottoming here, I really don't see it as a chart play. Engagement of Houlihan as advisor tells me they are serious about this. I like the risk-to-reward here. Note: I have a high risk tolerance.
After switching auditors to the no-nonsense Malone Bailey that uncovered several ChiFrauds and abandoned other China clients, it was announced that a special committee was formed to evaluate take private transaction at split adjusted $3.00. Much like other legit tender offers, the company is under-performing ahead of the transaction.
From the Q4/2011 Earnings Release, we see they are proceeding as any serious company would when going looking to acquire all outstanding shares:
http://finance.yahoo.com/news/wsp-holdings-announces-fourth-quarter-120000835.html
Recent Business Development
The Company has recently engaged Houlihan Lokey (China) Limited as the financial advisor to the Special Committee of its Board of Directors in relation to the non-binding proposal received from H.D.S. Investment LLC ("HDS") indicating HDS's interest in acquiring all outstanding shares of the Company in a possible going-private transaction for $3.00 per American Depository Share in cash, subject to certain conditions. The Special Committee, working with its advisors, has not set a definitive timetable for completion of its evaluation and does not currently intend to announce developments unless and until a definitive transaction or strategic option has been approved.
Crocker Coulson led the conference call on 4/19 so we know IR is still engaged.
Unlike tender offers from domestic China companies that proved a sham, this company has a global footprint that will likely be expanded with new product launches in 2012 (save the profit catalysts until after going private). View the July 2011 Investor Presentation.
http://media.corporate-ir.net/media_files/IROL/21/216706/WSP_Investor_Presentation_July_2011.pdf
10-K also tells us they feel confident with international expansion plans.
While chart may be bottoming here, I really don't see it as a chart play. Engagement of Houlihan as advisor tells me they are serious about this. I like the risk-to-reward here. Note: I have a high risk tolerance.
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