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I am keeping because:
1) Shandong weigao has lost confidence in biosensors. in order for a company to grow, you need investors who are confident in its growth. the inclusion of CB Medial holdings, a private equity fund of CITIC, may mean that there may be further contributions by CB in future. This could be in the form of liquidity or additional share acquisition in the open market.
2) Shandong weigao and CB Medical are completely two different entities that work differently. Private equity firms have the tendency to buyout and relist in future at higher valuations. given that the valuation of biosensors is attractively priced now, there is a possibility of a buyout in future. However, it may of course, not be very high a price (could be close to $1.05 or higher).
3) CB medical values biosensors at $1.05. any further downside to its share price may spell open share transactions by CB medical holdings in the market. just a possibility.
2) much of the previous equity firms, such as Atlantis and FIL which hold excessive stakes in biosensors have considerably scale down their share purchases by selling in the market. This is left with CB medical and hony capital, which holds a stake at 15.7%. While it may seem that a buyout is difficult with two almost equal weight shareholders, there is a possibility for hony capital to reduce or sell its stake given that it has been a SSH for a long time. PE firms have the tendency to sell and book a profit after a few years. If this isnt possible, there could otherwise be a takeover battle although it is highly unlikely given that biosensors have not fully recovered in earnings.
just my 2cents worth. thanks!
Looks like Shandong Weigao cashed out of their investment in Biosensors, selling their entire stake to an investment fund controlled by CITIC. Before jumping to conclusions that they sold out for a lost because they lost faith in the company and internal tensions we need to see how they obtained their 21.6% stake in the first place.
Shandong Weigao traded their 50% stake in subsidiary JWMS for cash and shares and a loan which they also converted to shares. The theoretical price is $1.20 ++ per Biosensors share but to start with, I felt that JWMS price was also high. Highly priced share for highly priced share so everyone looks good.
So after this deal, CITIC will control 21.6% and Legend Holdings 15.7%. Both are controlled by the Chinese government. Shouldn't there be further action coming soon?
same situation here... can i ask what are u basing your decision on? split for decision here..
Markie ( Date: 25-Nov-2013 11:40) Posted:
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Small investor here. Have not sold any of my lots and my average price is at 89 cents lol.
yiming2000 ( Date: 25-Nov-2013 11:23) Posted:
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Friend markie, how many lots are you keeping?
Friend starlene, what do you say? Keep or dump it all now?
I will keep 😁
indeed..
Peter_Pan ( Date: 22-Nov-2013 19:23) Posted:
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CB Med willing to buy at $1.05 means they are keen on Biosensors business model and potential. They may trigger a full take over of Biosensors anytime but the price could be much higher as Biosensors may start defending own stocks. .
Markie ( Date: 25-Nov-2013 10:04) Posted:
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Mgt have no faith in own stock.A lot of internal fighting as well.
I agree
Markie ( Date: 25-Nov-2013 10:04) Posted:
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on a willing buyer and seller basis, ignoring the reasons of both investors' purchase and sell, it would be reasonable for the stock to go up to $1.05 as it would reflect the current market value valued by the largest shareholders.
Now at $0.91, I wouldn't rule out CB medical might accumulate more shares if the price of biosensors keeps falling as value is increasingly attractive.
Check out my postings & understand y anchor & investors r selling
Why big investor selling at loss ? Maybe stay sideline.....play safe
Shandong Weigao (SW), which is Biosensors International Group?s (BIG) largest shareholder, announced that it has agreed to dispose its entire 21.7% stake in BIG to CB Medical Holdings Limited (CBMH) at a sale price of S$1.05 per share. According to a SGX-net filing, CBMH is part of CITIC Private Equity Funds Management, a large private equity fund in China. As SW will incur a loss of ~CNY449.0m from this transaction, we believe it also partly reflects the lack of confidence in BIG?s prospects going forward. We do not foresee any impact from SW?s sale on the operations of BIG. While we do not rule out the possibility of a privatisation exercise on BIG by CBMH in the future, we continue to value the stock based on our expectations of its operational performance. Hence, maintain SELL and S$0.80 fair value estimate on BIG. (Wong Teck Ching Andy)
a lot of traps
Markie ( Date: 25-Nov-2013 09:36) Posted:
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badly bruised this morning
Street appears divided on their opinion in the latest development, with the positives claiming that the latest acquisition by CB Medical, would enable Biosensors to tap and utilize the resources / network of Citic PE, in regards to business expansion and product development. Others however opine that the sale by Shangdong Weigao, depicts a lack of confidence in the prospects of Biosensors going forward, and the presence of two PE funds (Hony Capital holds 15.8% shares outstanding, CB Medical holds 21.7% shares outstanding) could lead to differing views and a less cohesive organization. Overall, the street has 1 Buy, 6 Holds and 2 Sell call ratings with a mean TP of $0.95.
Good post
alexmay ( Date: 23-Nov-2013 14:28) Posted:
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CB Medical actually controlled by CITIC PE Funds
Relationship between Substantial Shareholders
CB Medical Investment Limited (" CBMI" ) holds more than 50% of the voting rights of CBMH. By virtue of this, through CBMH, CBMI has a deemed interest in 370,000,000 Shares, representing approximately 21.7% of the issued share capital of Biosensors.
CITIC PE Funds Management Limited (" CITIC PE FM" ) holds more than 50% of the voting rights of CBMI. By virtue of this, through CBMI and CBMH, CITIC PE FM has a deemed interest in 370,000,000 Shares, representing approximately 21.7% of the issued share capital of Biosensors.
CITIC PE (Hong Kong) Limited (" CITIC PE HK" ) holds more than 50% of the voting rights of CITIC PE FM. By virtue of this, through CITIC PE FM, CBMI and CBMH, CITIC PE HK has a deemed interest in 370,000,000 Shares, representing approximately 21.7% of the issued share capital of Biosensors.
See link: http://infopub.sgx.com/FileOpen/CBMedical_Form3_22Nov13.ashx?App=Announcement& FileID=265515
Can some kind soul find out more why Citic fund buys Biosensor