That ENN article posted on your BB only confirms the announced intention of the acquisition made last December. It is in no was meant to be interpreted as a done deal....It is not. Read my post below. Many thanks..
Some rough calculations. .94m shares @ £24m..average HK$3.10 106m shares @ £38.5.average HK$3.60 Rough cost per share..HK$3.38 That fulfilled our obligation under JV agreement with partner.
Of course since then Fortune Max has begun buying. ENN hold there EGM on 28th Feb to approve offer for CGHs...so expect some news after that event..If passed, then it may open the door for the bidders to up there price. The long stop date is March 31 2012 by which all approvals should be granted for bid to proceed. Certain ministries in China must approve the T/O...This date can be extended if need be.
Best result for FTO is a bid collapse. FTO are financing there stake from internal group profits and so can stay the distance longer then speculators. They are clearly demonstrating to the Chinese authorities that they are here for more then quick profit. This is highly commendable in Chinese business circles and will not have any adverse effects on the groups ability to win favourable future contracts should the Senopec bid ultimately fail. The current yield on the investment is about 1% and not 6% as some BB have posted. But this investment is not about current yield..it is about future profit in a dynamic internal economy.
PC has entered into arrangements with lenders. While the news may be slow regarding this bid, it is becoming intriguing. I believe SK Holdings and FTO are now with in striking distance of scuppering the current bid for CGHs. ENN are in no position to increase the bid as this would leave them very exposed to high long term debt to finance. The Government in China may now withdraw Senopec from the deal and leave CGHs open to an other bidder. Beijing needs to show some what of an openness of its markets for foreign bussiness
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