Performance of Chinese ADRs After Withdrawn Buyout Offers

Management buyout offers are made at a time chosen by insiders and when they may have valuable non-public information about a company's future potential.  Shareholders in companies with currently pending buyout offers (such as China Automotive Systems and China XD Plastics) should consider that some past offers that did not close were followed by significant … Continue reading Performance of Chinese ADRs After Withdrawn Buyout Offers

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Chinese ADR Buyouts in Progress (Update)

Prices of many pending buyouts of US listed Chinese companies fell recently after Chinese regulators indicated that conversion of RMB funds for overseas acquisitions would be subject to increased scrutiny (see Bloomberg: China to Curb Megadeals as Regulators Tame Record Overseas Spree).  It does not appear that any of the current deals would be explicitly forbidden, … Continue reading Chinese ADR Buyouts in Progress (Update)

Chinese ADR Buyouts in Progress (Update)

Prices of many pending buyouts of US listed Chinese companies fell sharply in May after Chinese regulators expressed concern over relisting these businesses in China through reverse mergers.  Reverse mergers provided a path by which a company could be trading in the domestic market in less than one year instead of potentially waiting 3-4 years to … Continue reading Chinese ADR Buyouts in Progress (Update)

Chinese ADR Buyouts in Progress (Update)

Many pending buyouts progressed towards completion despite recent equity market volatility.  Since my last update: Mindray closed Global-Tech Advanced closed Homeinns closed Jiayuan has been approved and expects to close this month Xueda has been approved and expects to close this quarter DangDang received a competing bid at a higher price New buyout offers: Sinovac … Continue reading Chinese ADR Buyouts in Progress (Update)

Chinese ADR Buyouts in Progress (Update)

Many pending buyouts progressed towards completion despite recent equity market volatility.  Since my last update: the Vimicro buyout was completed the Xueda Education buyout was approved, but has not yet closed the Jiayuan buyout was approved, but has not yet closed.  The company is essentially going public on China's "New Third Board" through a reverse … Continue reading Chinese ADR Buyouts in Progress (Update)

Chinese ADR Buyouts in Progress (Update)

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 … Continue reading Chinese ADR Buyouts in Progress (Update)

Chinese ADR Buyouts in Progress (Update)

Stabilization of the Chinese domestic markets has improved prospects for completion of a majority of the ADR buyouts announced this year.  In the past week shareholders approved the buyout of Shanda Games (GAME) and the buyout was Sungy Mobile (GOMO) was approved and closed. The CSI 300 market cap weighted index of the 300 largest … Continue reading Chinese ADR Buyouts in Progress (Update)

Chinese ADR Buyouts in Progress

Stabilization of the Chinese domestic markets has improved prospects for completion of a majority of the ADR buyouts announced this year. The CSI 300 market cap weighted index of the 300 largest Shanghai/Shenzhen listed stocks has rebounded 16% from its August low and is now unchanged for the year: The highly speculative Chinext index has … Continue reading Chinese ADR Buyouts in Progress