ITC Corp (0372)

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ITC shares had a good run last week closing at $0.69 which is at the 52 week high. But I didn't see any company announcements which caused the rise.
I noticed that Mr Chan has increased his holding in ITC Corp ( 00372.HK) from 283 Mil shares to 400 Mil shares ( reported in SCMP newspaper on18 Mar 2013 ).

Mr Chan must know his company shares are worth much more.
This is from the conversion of the convertible bonds due Nov 2013 that Mr Chan and his wife are holding.

Qn to ask: So now how can Mr Chan & wife get back the money that they used to buy these convertible bonds?
And why now?? Smile
I do NOT think this increase of shares is connected to any conversion of convertible bonds.

Mr Chan has disclosed his latest shareholding on 14th March 2013 whilst another shareholder Ms P Yeung has reported a total disposal of 116 Mil shares on 13 March 2013.
U go check Disclosure of interests. by stock code.
The price stated at 30 cents is the conversion price of the CB.

see link for conversion of CB at 30 cents.
I was not aware of the conversion of convertible bonds at 30cts into 23.6 Mil new share on 13th Mar and 9.99 Mil new shares on 14th Mar making approx 34 Mil new shares issued .

I was really matching Mr Chan's gain of approx 166 Mil shares with the similar sized disposal of 166 Mil holding by Ms Yeung.

Regarding yr Qn in post #13.

1. I would expect Mr Chan & wife to sell part of holding in ITC shares at higher price later to get back to cash - perhaps next year ?

2. You ask why now ? Perhaps Ms Yeung want to sell ITC stake to raise cash ?? I don't know what is Mr Chan's plan but I do feel the ITC group is under transformation .
My guess is the faster way to get back cash is dividends. And ITCC associates been selling assets left right centre. They have the cash.

I don't know who is Ms Yeung. My guess she is a nominee for the Chans. Now Chans wants their shares back in their own name.
I think Ms Yeung is a director of Success Securities which is part of same group as Success Universe (00487.HK) which is a not very successful HKSE listed company judging by its past 5 years track record. The Macau Business Daily reported in Feb 2013 that Success Universe will be buying a 10.2 % stake in World Fortune Ltd which has a 49% stake in the "Ponte 16 Casino" from Haruhan a Japanese Patchinko Company.

So I would guess that Success Universe needs to raise funds to buy the 10.2% stake in WFL and hence Ms Yeung is selling her stake in ITC now.
OK. Sounds possible. But why would Yeung want to give almost 20 cents discount to the prevailing mkt price?

If Chans willing to buy 45 cents for it, the value they are extracting will be more than that.
No. 372 share price has been up to 70 cts resistance level three times recently. if next set of annual results are good , then it has the chance to cut through the resistance level.

The Annual Results will be released after Directors' meeting on 25 Jun 2013.

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