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GSI loses $615mm in 2Q, $660mm YTD
But if you exclude a monster impairment charge, YTD operating cash flow was only minus $248mm
Book Value per share is now minus $14.35
It is still transforming into an "internet of things" company ...
Re: UTSI
I don't know who Smart Soho is. They are buying over 30% of the company giving them effective control. You can't do that in the public market.
UTSI: Shah Capital selling out for $6.08/share
Huge win for Shah. No immediate impact on the company. I don't recognize the buyer.
http://www.sec.gov/Archives/edgar/data/1030471/000119312515282212/d16917dsc13da.htm
On August 6, 2015, the Shah Parties and the Lu Parties entered into a Binding Term Sheet (“Term Sheet”) with The Smart Soho International Limited (“Smart Soho”) setting out certain terms of a proposed transaction for the sale of 11,739,932 Ordinary Shares held by the Shah Parties and the Lu Parties to Smart Soho and additional purchasers to be designated by Smart Soho at a price of US$6.081 (the “Transaction”). The detailed terms and conditions regarding the Transaction shall be promptly negotiated in good faith by the parties to the Term Sheet and set forth in a mutually satisfactory definitive share purchase agreement for the sale and purchase of the Sale Shares. Smart Soho has agreed to deposit US$1 million into escrow as provided under the Term Sheet which amount shall be credited against the purchase price should the Transaction be consummated. Among other items, the Term Sheet sets out certain non-exclusive conditions that must be fulfilled as a condition to Smart Soho’s obligation to sign a share purchase agreement and complete the Transaction. Further, under the Term Sheet the parties have agreed to an exclusivity period during which to negotiate the share purchase agreement and complete the Transaction. The Term Sheet also provides that none of the parties is obligated to enter into the share purchase agreement, or to close the Transaction unless a mutually satisfactory share purchase agreement has been reached and the closing conditions thereunder have been satisfied.
PWRD payout came 2 days ago.
CMGE merger vote also passed last week. I didn't own it so I don't know whether it paid yet.
LONG buyout at $18
http://www.prnewswire.com/news-releases/elong-announces-receipt-of-preliminary-non-binding-going-private-proposal-300122494.html
High likelihood of closing because it's from Tencent rather than management.
XNY - Shah still buying
Latest 13D 2,337,379
6/2 13D 2,160,972
Re: ZA
http://fashion.mansuno.com/detail/6814.html
The concept is interesting, but without the business details of the deal there's not much for investors to go on.
Re: ZA
It's got to be related in some way to the major acquisition they announced in china on 6/22
Buyouts
The ones being done at low P/E and low P/B (some examples EJ PWRD DSKY) should get done. Would not be a problem for backers to keep them private for 5+ years.
The ones being done at high valuation (some examples AMCN QIHU) look riskier because backers will will be bleeding cash until they get some kind of exit.
Prices on some of the deals with wide spreads could be cut from the level in the "preliminary non-binding" proposals.
What's green today?
Cream rises to the top...
http://finviz.com/screener.ashx?v=111&f=geo_china,sh_price_o1,ta_change_u&ft=4&o=change
ADR buyouts
I don't know why some were highlighted from this article:
http://www.streetinsider.com/Analyst+Comments/Rosenblatt+Sees+Quality+China+ADR+Go+Private+Deals+Closing%3B+Says+Still+Undervalued+to+Peers+by+5-10x/10706767.html
PWRD Buyout at $20.20
Meeting 7/28
Hit $18 a little while ago
China ETFs are trading far below NAVs
Short-selling these today is like paying 5-15% for a one day option.
ASHS NAV $47.16 7/6/15
CSI500 index change -6.53%
Estimated ASHS NAV $44.08
Last Trade $38.34
Discount 13%
Goldman ADR stock picks:
---------------------------
China ADRs
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exposure. We screen for ADRs that have strong fundamentals and would also potentially
benefit from the passive flows from MSCI index inclusions in November as per the criteria
below:
a) Buy rated by GS/GH analysts
b) A member of the MXOCN index (i.e., the 14-ADRs that are going to be included in
MSCI China in November)
c) Stocks that EM funds would potentially be UW post the ADR inclusion and hence
could see passive inflows.
We highlight Soufun, Jumei, VIPShop, Alibaba and Baidu as our preferred stocks that meet
the above criteria.
Re: KZ
IDG has completed a bunch of these deals.
Chatter about China suspending IPOs so the exit strategy for privatizers may be in jeopardy.
Yeah. It takes 1-3 years to restructure a company for a listing in China so where's the market going to be at that point? They have to eliminate the BVI/Cayman holdco and then collapse the VIE. Then an onshore IPO requires no change in corporate structure in the past three years. A reverse merger can be completed faster, but Focus Media shows that can encounter problems too.
I think the deals at a cheap price like PWRD are safe. High priced stuff like QIHU is riskier. And what about MOMO, trying to go private just six months after going public?
Re: MY
Looks like MY is buying a parts supplier controlled by the Chairman's wife as explained in last month's PR:
http://finance.yahoo.com/news/ming-yang-wind-power-announces-123000006.html
re: FMCN
Backdoor entry can be rough. Often less painful to just do it straight.
AMCN = ADHD
Can't keep track of their changing deals.
Stock probably stays at a large discount to the "deal" price because who knows what happens next.
Re: QIHU
Long-time target of short--sellers including Citron and muddy waters.
7.1mm shares current short interest
QIHU buyout offer at $77
That's a $10Bn deal
http://www.prnewswire.com/news-releases/qihoo-360-announces-receipt-of-a-preliminary-non-binding-proposal-to-acquire-the-company-300100580.html
Re: NUIN
I didn't look at it in detail. I don't really understand the product. I don't like the VIE structure because I don't think it's required for this business (not a restricted sector like internet).
There's a lot of cordyceps product sold on taobao/tmall but I can't see anything identifiable as connected to Nutrastar. Can you point to any?
http://list.tmall.com/search_product.htm?q=%D3%BC%B3%E6%B2%DD&type=p&spm=a220m.1000858.a2227oh.d100&from=.list.pc_1_searchbutton
Credit Suisse picks ADRs most likely yo go private:
MCOX, KONG, FENG, GSOL, ZPIN, EJ, PWRD, LEJU, EDU, and JOBS.
No buyouts today?
Re: ZA
I think this PR completes their minimum filing requirements for the entire year so no chance of going dark before 2016.
At some point they need to appoint a new independent Director or one of the Insider Directors needs to resign.
20-F says they expect to hire a new CFO in the second half. News may be limited until then.
Re: IKGH
Borrow rate is 8% at Fidelity and 10.625% at IB.
RE: IKGH OSN XIN
IKGH: All the gambling has moved from Macau to the stock market. VIP business trends are terrible.
OSN: Should go private. Business is strong and outlook is positive. Chairman has a 9 figure net worth (in dollars). China-listed comps are trading at huge valuations. Intangible benefits of US-listing aren't worth much here.
XIN: Probably missed its chance. Company is highly leveraged. Bond covenants may include a put right or mandatory redemption in case of a buyout. So it would take a lot of cash to do a deal. Company also puts a lot of emphasis on the NYSE listing in its marketing.
Re: CISG and CCCL
CISG offer was $19. It just sold a 7.5% stake to a local insurer at $9.10.
http://finance.yahoo.com/news/cninsure-receive-us-42-3-132615909.html
CCCL was $7, but it was not an MBO. Proposal from a financial group required CEO to roll his shares into the buyout and give the group a free put to dump their stake back to him with a 15% IRR. Basically, he would take all the risk and they would get most of the return.
Re: Smokes
These prices are a curse. They've given up any pretense of "fairness" and instead just offer a 10% premium. Management takes all the valuation upside for themselves. If business turns down or the path to relisting in China looks tougher than expected then the non-binding offer will be withdrawn and the public is left with all the downside.
UTSI said on its conference call that it is examining ways to tap the domestic capital market in China. If they can find the right structure then it would be a home run for shareholders.
RENN buyout offer at $4.20
BEIJING, June 10, 2015 /PRNewswire/ -- Renren Inc. (NYSE: RENN) ("Renren" or the "Company"), a leading real-name social networking internet platform in China, announced that its Board of Directors (the "Board") has received a non-binding proposal letter, dated June 10, 2015, from Mr. Joseph Chen ("Mr. Chen"), Chairman of the Board and Chief Executive Officer of the Company, and Mr. James Jian Liu, a member of the Board and Chief Operating Officer of the Company, proposing a "going-private" transaction (the "Transaction") to acquire all of the outstanding ordinary shares of the Company not already owned by Mr. Chen or Mr. Liu for US$4.20 in cash per American depositary share ("ADS"), or US$1.40 per ordinary share, which represents approximately 22% above the average closing price of the Company's ADSs over the last 30 trading days up to and including June 9, 2015.
Mr. Chen and Mr. Liu currently beneficially own approximately 32% of ordinary shares of the Company, representing approximately 49% in the Company's shareholder voting power.
According to the proposal letter, Mr. Chen and Mr. Liu intend to fund the consideration payable in the Transaction with a combination of debt and equity capital, and rollover equity in the Company. A copy of the proposal letter is attached hereto as Annex A.
The Board intends to form a special committee consisting of independent directors to consider this proposal.
The Board cautions the Company's shareholders and others considering trading in its securities that the Board just received the non-binding proposal letter from Mr. Chen and Mr. Liu and no decisions have been made with respect to the Company's response to the Transaction. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated. The Company does not undertake any obligation to provide any updates with respect to this or any other transaction, except as required under applicable law.
About Renren Inc.
Renren Inc. (NYSE: RENN) operates a leading real name social networking internet platform in China. It enables users to connect and communicate with each other, share information and user generated content, play online games, and enjoy a wide range of other features and services. Renren's businesses primarily include the main social networking website renren.com and the game operating platform Renren Games. Renren.com had approximately 225 million activated users as of March 31, 2015. Renren's American depositary shares, each of which represents three Class A ordinary shares, trade on NYSE under the symbol "RENN".
MR - buyout offer at $30
Mindray Announces Receipt of "Going Private" Proposal at US$30.0 Per ADS or US$30.0 Per Ordinary Share
Shenzhen, China, June 4, 2015 - Mindray Medical International Limited (“Mindray,” NYSE: MR), a leading developer, manufacturer and marketer of medical devices worldwide, today announced that its board of directors (the “Board”) has received a preliminary non-binding proposal letter dated June 4, 2015 from Mr. Li Xiting, its Executive Chairman of the Board, President and Co-Chief Executive Officer, Mr. Xu Hang, its Chairman of the Board, and Mr. Cheng Minghe, its Co-Chief Executive Officer and Chief Strategic Officer (collectively, the “Buyer Group”), to acquire all of the outstanding shares of the Company not already owned by the Buyer Group in a going private transaction for US$ 30.0 per American Depositary Share (“ADS”, each ADS representing one ordinary share) or US$ 30.0 per ordinary share in cash, subject to certain conditions. A copy of the proposal letter is attached hereto as Exhibit A.
The Board intends to form a special committee consisting of independent directors to consider this proposal. The Company cautions its shareholders and others considering trading in its securities that the Board just received the non-binding proposal and has not made any decisions with respect thereto. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated.
About Mindray
We are a leading developer, manufacturer and marketer of medical devices worldwide. We maintain our global headquarters in Shenzhen, China, U.S. headquarters in Mahwah, New Jersey and multiple sales offices in major international markets. From our main manufacturing and engineering base in China, we supply through our worldwide distribution network a broad range of products across three primary business segments, namely patient monitoring and life support, in-vitro diagnostic, and medical imaging systems. For more information, please visit http://ir.mindray.com.
VNET - buyout offer at $23
21Vianet Group, Inc. Announces Receipt of Preliminary Non-Binding "Going Private" Proposal
Globe Newswire
June 10, 2015: 09:11 AM ET
BEIJING, June 10, 2015 (GLOBE NEWSWIRE) -- 21Vianet Group, Inc. (Nasdaq:VNET) ("21Vianet" or the "Company"), a leading carrier-neutral internet data center services provider in China, announced that its Board of Directors (the "Board") has received a non-binding proposal letter, dated June 10, 2015, from Mr. Josh Sheng Chen ("Mr. Chen"), Chairman of the Board and Chief Executive Officer of the Company, Kingsoft Corporation Limited ("Kingsoft") and Tsinghua Unigroup International Co., Ltd. ("Unigroup", together with Mr. Chen and Kingsoft, the "Buyer Group"), proposing a "going-private" transaction (the "Transaction") to acquire all of the outstanding ordinary shares of the Company not already owned by the Buyer Group for US$23.00 in cash per American depositary share ("ADSs"), or approximately US$3.83 per ordinary share, which represents approximately a 17.7% premium above the average closing price of the Company's ADSs over the last 15 trading days up to and including June 9, 2015.
An English translation of the proposal letter is attached hereto as Annex A.
The Board intends to form a special committee consisting of independent directors to consider this proposal.
The Board cautions the Company's shareholders and others considering trading in its securities that the Board just received the non-binding proposal letter from the Buyer Group and no decisions have been made with respect to the Company's response to the Transaction. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated. The Company does not undertake any obligation to provide any updates with respect to this or any other transaction, except as required under applicable law.
About 21Vianet
21Vianet Group, Inc. is a leading carrier-neutral internet data center services provider in China. 21Vianet provides hosting and related services, managed network services, cloud services, content delivery network services, last-mile wired broadband services and business VPN services, improving the reliability, security and speed of its customers' internet infrastructure. Customers may locate their servers and networking equipment in 21Vianet's data centers and connect to China's internet backbone through 21Vianet's extensive fiber optic network. In addition, 21Vianet's proprietary smart routing technology enables customers' data to be delivered across the internet in a faster and more reliable manner. 21Vianet operates in more than 30 cities throughout China, servicing a diversified and loyal base of more than 2,000 customers that span numerous industries ranging from internet companies to government entities and blue-chip enterprises to small- to mid-sized enterprises.
Re: TAOM
Blasted through to a high of $3.80 on decent volume.
FENG probably pulled higher by BABA news
----------------------------------------------------------------------
Alibaba to Invest in China Business News
E-commerce giant to pay about $200 million for a 30% stake
China’s biggest e-commerce company Alibaba Group Holding Ltd. is set to announce on Thursday that it will invest about $200 million for a 30% stake in China Business News, a financial TV and newspaper company that is part of Shanghai Media Group, people familiar with the matter said.
The two companies plan to jointly develop a financial data service that can make use of Alibaba’s database of e-commerce statistics such as sales trends, the people said. Alibaba in April rolled out a new data service for local governments across China to search all kinds of e-commerce related statistics.
The Hangzhou-based company also aims to turn its shoppers into investors. It has started providing stock quotes and charts on the app of Alipay, a PayPal-like online payment system service, and plans to put financial news and information there, said people familiar with their plans.
Alibaba, which has made a flurry of investments in media and entertainment in the past year, also plans to develop a new media incubator with China Business News for media startups, people familiar with the matter said.
The investment follows an alliance made between Alibaba and Shanghai Media Group in November to work together on financial services and business news, and Alibaba’s failed attempt to acquire a stake in another traditional media company called 21st Century Business Herald.
Qin Shuo, chief executive of China Business News, will leave the company after the deal to focus on new media and research. Zhou Jiangong, editor in chief of Forbes’ Chinese edition and a former senior editor at China Business News Paper, will succeed him.
In a vote of confidence in the anticipated investment, Guangdong Guangzhou Daily Media Co Ltd., which owns a small stake in China Business News, surged by 10%, its daily trading limit, on Wednesday afternoon in Shenzhen trade.
3SBio relisting in Hong Kong
Taken private from nasdaq at a valuation of $370mm in 2013. IPO in Hong Kong next month at a valuation of $2.8Bn.
http://www.bloomberg.com/news/articles/2015-05-27/3sbio-draws-gic-blackrock-to-up-to-712-million-hong-kong-ipo
Hanergy - possible explanation
Caixin says the private parent company pledged Hanergy shares as collateral for loans and then defaulted. It looks like the creditors liquidated them.
http://english.caixin.com/2015-05-21/100811386.html
Hanergy - fraud?
HK listed stock has been in the news a lot:
http://money.cnn.com/2015/05/21/investing/china-hanergy-stock-plunge/
Blog post with on site due diligence:
http://brontecapital.blogspot.com/2015/05/hanergy-let-there-be-no-doubt.html
CAAS: Chairman files to sell 5mm shares
http://www.sec.gov/Archives/edgar/data/1157762/000114420415033038/v411139_s3a.htm