Stabilization of the Chinese domestic markets has improved prospects for completion of a majority of the ADR buyouts announced this year. Since my last update the Wuxi Pharmaceutical buyout was approved and closed and several deals moved forward with price increases:
- Home Inns offer was raised from $32.81 to $35.80
- Jiayuan offer was raised from $5.37 to $7.56
- Global-Tech Advanced offer was raised from $8.75 to $8.85
- Taomee offer was raised from $3.50 to $3.757
- IKang received a competing offer of $22.00 compared to the original offer of $17.80
The CSI 300 market cap weighted index of the 300 largest Shanghai/Shenzhen listed stocks has rebounded 22% from its August low and is now +2% for the year:
The highly speculative Chinext index has rebounded 50% from its September low and is now up 81% for the year.
The lagging performance of many US listed Chinese stocks leaves the incentive in place for privatization restructuring and relisting on a domestic exchange. The recent resumption of local IPOs seems to have increased the appetite for completion of transactions. A majority of the deals on this list are likely to close:
