Small fish who swim with big ones (or even sharks) tend to get eaten. Reminds me of what has happened all too often to minorities in companies controlled by Li Kai-shing.
That said, I wonder about the reasons for the discount to book - perhaps the book value may itself be "optimistic" - many are these dayes in the GCC.
We used to have a saying about investing in Chinese companies as a minority partner. "Just fill up your wallet and leave it here on the table."
An interesting conundrum. Since the major shareholder is making the offer does this reflect its view of the accuracy of the company's financials? A prediction of imminent changes in the FX rate. Market pricing power.
Small fish who swim with big ones (or even sharks) tend to get eaten. Reminds me of what has happened all too often to minorities in companies controlled by Li Kai-shing.
ReplyDeleteThat said, I wonder about the reasons for the discount to book - perhaps the book value may itself be "optimistic" - many are these dayes in the GCC.
Laocowboy2
ReplyDeleteWe used to have a saying about investing in Chinese companies as a minority partner. "Just fill up your wallet and leave it here on the table."
An interesting conundrum. Since the major shareholder is making the offer does this reflect its view of the accuracy of the company's financials? A prediction of imminent changes in the FX rate. Market pricing power.