ITC Corp (0372)

[soros]

Wow! The company already paid 4 cents interim . So if you expect at least 6 cents final, the total dividend will be 10 cents paid out for 2014-2015.

This will put the shares now standing at 69 cents on a prospective 14.5% yield. Very attractive and it would beat the dividend paid by reits.

[opmi]

Most of the cash set aside for dividends were not
paid out because 70%-80% shareholders opted for scrip
div. Most of the cash still in the company. For now, the dividends
seems like a slightly accretive 'bonus issue'

The biggest issue with the share price is Shell King repuation.

[soros]

The share price seems now to be settled in a trading range between 72 -75 cents but not swept up by the surge of china buyers.

[opmi]

The share price seems now to be settled in a trading range between 72 -75 cents but not swept up by the surge of china buyers.

PRC investors scared of 老千股。Charles Chan has a history of playing 财技。

[soros]

Today was not a normal trading day. The share price opened at 73 cents from around 10.30 am and steadily headed north to 84 cents ( well past its recent high of 75 cents ).

Then trading was suspended at 2.34pm at the request of the company awaiting release of insider information. The volume of shares traded was 28.46 Million which must be a Guinness record for daily turnover for 00372.HK .

Whats up doc ? ( is what bugs bunny would have asked ).

Well, Rosedale Hotel ( 01189.HK) opened at 59 cents and in heavy trading headed north in the morning peaking at 80 cents around noon. But then the share price stopped rising and reversed falling to 70 cents in afternoon before slightly rising to 72 cents at close of trading. The volume of shares traded was a hectic 66.56 Million and no suspension was requested for Rosedale shares .

So I wonder if those buyers in morning had bought heavily into wrong company and realised their mistake at lunchtime and switched their buying into 00372.HK in the afternoon ???

[soros]

All is now revealed by today's notice :

INCREASE IN SHAREHOLDING BY CONTROLLING SHAREHOLDER
On 23 April 2015, Dr. Chan acquired a total of 229,962,089 Shares for an aggregateconsideration of approximately HK$167,872,325. The Share Acquisition was made off marketthrough a securities broker with several sellers by way of bought and sold notes. The seller are all independent third parties of the Offeror and parties acting in concert with it. As a result of the Share Acquisition, the number of Shares held by Dr. Chan, directly and indirectly, has increased from 547,348,410 Shares to 777,310,499 Shares, representing a change from approximately 38.2% to approximately 54.2% of the total issued share capital of the Company
as at the date of this joint announcement. Dr. Chan will remain as the controlling shareholder(as defined in the Listing Rules) of the Company.
MANDATORY UNCONDITIONAL CASH OFFER
As a result of the Share Acquisition, Dr. Chan is required to make a mandatory unconditional cash offer pursuant to Rule 26.1 of the Takeovers Code for all the Shares not already owned or agreed to be acquired by him and parties acting in concert with him. Save for the
1,433,771,074 Shares in issue, the Company does not have any other outstanding securities, including options, warrants or derivatives or convertible rights affecting the Shares as at the
date of this joint announcement.
Anglo Chinese will, on behalf of the Offeror, make the Offer in compliance with the Takeovers Code on the following basis:
For each Offer Share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . HK$0.73 in cash

The Offer Price of HK$0.73 per Offer Share equals to the purchase price per Share paid by Dr. Chan under the Share Acquisition.

[specuvestor]

"The Share Acquisition was made off marketthrough a securities broker with several sellers by way of bought and sold notes"

Am I reading too much but they need derivative note to buy and sell HK shares?

[opmi]

"bought and sold notes" - obviously to hide the identity of the parties involved.

some VB here like to see Offeror borrow money to buy asset rich companies:-

Confirmation of financial resources
The Offeror intends to finance the total consideration payable by it in respect of the Offer in the
aggregate amount of HK$479,216,220 from its own financial resources and a loan facility from
Get Nice Securities Limited. Anglo Chinese, as the financial adviser to the Offeror in respect
of the Offer, is satisfied that sufficient financial resources are, and will remain, available to the
Offeror to satisfy full acceptance of the Offer.

[specuvestor]

^^ yes... It was a rhetorical question 此地无银三百两

[soros]

The shares are trading around 84-86 cents which is about 15% above the mandatory offer price of 73 cents. So I expect no-one will be accepting the mandatory offer and loan facility from Get Nice Securities Ltd will not be needed.

Does this look like the top for the 00372.HK share price in the next 3 months ?