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I believe there will be more investment from Chinese into UK and Europe as Trump is against Chinese so obviously they would like to invest in UK and Europe. With CINE, they will get access to CINEs US asserts! I too feel that they will increase their stake in the coming days.
With Chinese on buying spree am wondering if the shorts would reduce now?
CHINA REGULATORY REGIMES APPLICABLE TO FOREIGN INVESTMENTS
The Jangho Group with 2% of the China Sovereign Investment as their 2nd top major shareholder, can invest in
underperforming foreign entities without us ever knowing any better what really goes on among their AMG meetings.
In 2019, Chinese outbound M&A deal activity declined to a low point from the record-hitting level seen in 2016. This was partially because of political and economic uncertainties within China and the rest of the world in 2019 (including the US–China trade war), heightened scrutiny over these transactions by the United States and certain European countries, and also because Chinese regulators have promulgated guidelines and policies on foreign exchange outflow control, and on the outbound target industries and channels for onshore financing affecting outbound investment activities, and have encouraged a more strategic and prudent approach in Chinese outbound investments.
According to Thomson Reuters and PricewaterhouseCoopers analysis, in the first half of 2019, financial investor-backed Chinese outbound investments generally maintained the level of activity seen in the first half of 2018 in terms of the number of announced deals, with 134 deals announced in the first half of 2019 and 139 announced in the first half of 2018, while the announced deal value in the first half of 2019 declined by 48 per cent compared with the deal value in the first half of 2018. In addition, state-owned enterprise-backed Chinese outbound investments (which were historically the mainstream of the outbound investments in 2016) in 2019 decreased to the lowest point of any period over the past 10 years in terms of the value of announced deals.
Interesting article. Jangho are in the health sector now, maybe they are moving into cinema !!
IMO.. I think going forward we are going to see a lot more western shares owned by Chinese companies in different sectors, as they look to diversify from traditional industries and influence western culture from other avenues...
The Jangho Group have a reputation for making hostile bids.
I don't know if you already seen this articles of the 'Unchained' Jangho Group
in action trying to buy out a top notch business but due to concerns that the Jangho
Company had the China Investment Corporation (CIC) as their 2nd top institutional investor
their bid was rejected as the Australian gov was afraid that the would get hold of the Australians
health data and pass it on to the Chinese government.
Deals that may be affected by Australia's foreign M&A crackdown -
good find NOFEAR, although the CIC holding 2% of jangho's shares does not imply to me that the CIC are behind the Jangho griups cine purchases.
Or maybe not... good find nofear...
Key word with the Chinese is "investment" i dont think they are not doing this just for a punt... or a bit of fun.... i predict a further increase to their holding before perhaps a takeover attempt... Melrose did this with GKN.... imo of course.... next week could be interesting.... gla and dyor..
Who is the China Investment Corporation (CIC) ?
''We are a financial investor and do not seek control of the companies in our portfolio''
China Investment Corporation (CIC), founded on 29 September 2007, was established as a vehicle to diversify
China's foreign exchange holdings and seek maximum returns for its shareholder within acceptable risk tolerance.
Three subsidiaries of CIC—CIC International Co., Ltd. (CIC International), CIC Capital Corporation (CIC Capital)
and Central Huijin Investment Ltd. (Central Huijin)—were incorporated separately and function as three distinct
CIC is committed to being a prudent, professional and responsible institutional investor operating globally with
good reputation. Four principles underlie our investment activities:
We invest on a commercial basis. Our objective is to seek maximum returns for our shareholder within
acceptable risk tolerance. We are a financial investor and do not seek control of the companies in our portfolio.
We are a responsible investor, abiding by the laws and regulations of China and recipient countries and
conscientiously fulfilling our corporate social responsibilities.
We pursue investments based on in-depth research within our asset allocation framework to ensure a prudent and disciplined decision-making process. CIC follows a set of investment philosophies, which is firmly based on its
institutional characteristics and understanding of investment management:
We take a holistic and disciplined approach to strategy design, portfolio construction and management to ensure
portfolio integrity and stability. As a long-term investor, we are well-positioned to withstand short-term market
volatilities and capture illiquidity premium.
We continue to pursue risk diversification through spreading risk factor allocation in a bid to reduce portfolio
volatility and curb downside risk.
Exactly true broker1. Also the Jangho Group has the Chinese Government listed
as their 2nd top major shareholder holding a 2% of Jangho shares.
The Soveriegn China Investment Corporation (CIC) is a sovereign wealth fund responsible
for managing part of the People's Republic of China's foreign exchange reserves.
At the end of 2019, the CIC had over US$941 billion in assets under management.
They're known to use Chinese companies as a gateway for their investments bypassing
international laws that would othewise restrict the CIC investment strategies.
I cannot research why Jangho have bought. Could be any reason.
No idea what is happening with jangho, the company does not appear to have any interests in the movie and/or cinema sector. It opearates in the architectural decoration businesses and medical sector.
Chinese buying up shares.... not just to make a few quid day trading!! I see this entry as a massive positive..... but DYOR of course
I have no idea why Jangho would buy into Cine. It is not their sector. Maybe they know something we don't ?
a couple of comments:
Point 1, yes cine have probably conserved cash well, but they have still taken on new debt and increased the RCF.
Point 2, when cinemas are open there is the possibility that cine could burn more cash than when they were closed, if things do not go well.
Point 5, I do not think that the SP is deliberately being held back. Cine may need extra liquidity (or flexibility from their creditors), if they do not achieve sufficient cinema attendance levels in the future,
once again, this is from the fitch key ratings drivers from the 15th July 2020:
"Covenant Breach Likely: Cineworld's 2019 results indicate that the company had US dollar and euro term loans totalling USD3.6 billion and a RCF of USD462.5 million. The RCF is subject to net debt-to-EBITDA covenants, which are triggered at above 35% utilisation, and the term loans also have cross default provisions in respect of the covenant. However, our base case forecasts that the leverage covenant increase to 9.0x for the December 2020 testing may not be sufficient and may require further flexibility from Cineworld's lenders. This flexibility may also be required in 2021 depending on the level of cinema attendance."
The last time cine needed extra liquidity (and flexibilty) was in March 2020. What happened to the SP ?
Hi i dont post often but do read posts, both positive and negative... sometimes its good to step back and look at things in the clear light of day, is Cineworld SP underpriced? IMO yes... why?
1) They have probably conserved cash better than forecasted... we will find out in September.
2) they have already stated that they could survive until well in to next year even without opening this year.
3) cinemas are open in the majority of countries with the US to open back up soon.
4) unlimited card revenue is starting to roll in again, and at the end of this month Uk membership monies will start rolling in.
5) The share price is being deliberately held back, so MM and probably new players from the east can get cheap shares, and make money shorting it...
Will Cineworld go bankrupt... imo no... why some of the previous plus..
1) recent changes in who can own cinemas and interest increasing..
2) liquidity... i know i said that before!
3) court case not for a years time and a lot can happy between now and then, and perhaps an out of court settlement etc.. so less risk today
4) a lot of interest in this share, why would a chinese company buy over 4% of the shares if they didnt think it would survive and also getting a cheap entry-level... and will probably buy more at this giveaway price!
So in summary and IMO keep the faith, dont get distracted by the deramping trolls... like me hold onto your shares, buy more if you can, buckle up and enjoy the ride up to the SP summit... GLA and DYOR....