31-07-2015, 09:10 AM
I already expected this question...
They are basically instilling confidence by their under-taking...
Of course, that will be dependent on their views on CMP and if you share their confidence...
To me, non renounceable, non under-written means that they have a low costs funding exercise - perhaps can save as much as 1.5% investment banker fees and hence their commitment to mop up everything @ $1.00 which is a 1.5% discount.
CM HJ came up with the deal, they are taking up every share... nothing more that I can ask.
My speculative view is as follows:
i) CCP is undertaking one of the most controversial and tedious exercise in middle kingdom's financial market history. There are so many that can't wait for them to implode.
ii) I remain confident that CCP given time will stabilise the capital markets.
iii) CM HJ's move is inline with the big picture strategies. In the very likely event, they will end up with a high stake in CMP again possibly close to 80% (yet to calculate). In the same spirit, Liu Qiang - vendor of Honest Queen (Jiurui) will be holding on to his remaining stake even post moratorium.
iv) At the right time, CM HJ will dilute its stake on HKSE via whatever method to satisfy investors' demand there and then.
CMP's interims y'day has somewhat mitigated fears of China's widely reported slowdown and its impact on traffic volumes. YTW's growth remains very strong in mid teens. Beilun turned in some surprise growth notwithstanding construction works for expansion and while Jiurui appears an expensive acquisition currently is still a post 2017 growth story.
The pending acquisitions will open up a new virgin ground for CMP - also inline with CCP's plans for the inner west...
Whilst this is an unexpected diversion due to unforeseen circumstances, its remains part of the very strong backing script.
GG
They are basically instilling confidence by their under-taking...
Of course, that will be dependent on their views on CMP and if you share their confidence...
To me, non renounceable, non under-written means that they have a low costs funding exercise - perhaps can save as much as 1.5% investment banker fees and hence their commitment to mop up everything @ $1.00 which is a 1.5% discount.
CM HJ came up with the deal, they are taking up every share... nothing more that I can ask.
My speculative view is as follows:
i) CCP is undertaking one of the most controversial and tedious exercise in middle kingdom's financial market history. There are so many that can't wait for them to implode.
ii) I remain confident that CCP given time will stabilise the capital markets.
iii) CM HJ's move is inline with the big picture strategies. In the very likely event, they will end up with a high stake in CMP again possibly close to 80% (yet to calculate). In the same spirit, Liu Qiang - vendor of Honest Queen (Jiurui) will be holding on to his remaining stake even post moratorium.
iv) At the right time, CM HJ will dilute its stake on HKSE via whatever method to satisfy investors' demand there and then.
CMP's interims y'day has somewhat mitigated fears of China's widely reported slowdown and its impact on traffic volumes. YTW's growth remains very strong in mid teens. Beilun turned in some surprise growth notwithstanding construction works for expansion and while Jiurui appears an expensive acquisition currently is still a post 2017 growth story.
The pending acquisitions will open up a new virgin ground for CMP - also inline with CCP's plans for the inner west...
Whilst this is an unexpected diversion due to unforeseen circumstances, its remains part of the very strong backing script.
GG
(31-07-2015, 08:57 AM)Bibi Wrote: [ -> ]Interesting. For knowledge sake, can i ask, does it make more sense to buy from open market now if one does not wants his holdings to be diluted instead of subscribing to the new shares? Buying now also entitled to the 3.5 cts dividends.