Thursday, August 20, 2009

Delisting Companies: ChungHong Holdings (D7H) and Delong Holdings (B1N)


Company Info: ChungHong Holdings Limited (ChungHong) is an investment holding company engaged in the manufacture, assembly and sales of electronic products. The Company is a service provider of one-stop printed circuit board assembly (PCBA) and original equipment manufacturer (OEM) solutions for the electronics industry.

There was a premium of 21.05% for the cash offer, however the announcement was made while the stock was in trading halt. Therefore, there was almost no window of opportunity.


Company Info: Delong Holdings Limited is principally engaged in the manufacture and sale of hot-rolled steel coils with the People’s Republic of China as its principal market.

There was a premium of 30.7%, however there was several conditions regarding the options and bonds. It seems that the offer will fail and the stock has since dwindle to a quarter of its price since the offer document on Feb 2008. Interestingly, the buyer was Roman Abramovich, and for those who don't know soccer, he is the man who bought Chelsea, a famous football club in England.

Investment tips:

Nothing special about the ChungHong offer except the need to buy as soon as possible since there was not much window of opportunity. However, Delong Holding is a example that offers can fail and fall quite badly. I will need to maybe look in details to be careful about future similar offer.

References:

  1. ChungHong Holding Delisting Offer
  2. Delong Holding Delisting Offer

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