broadsword
Brigadier
The farm was not sold back by Shanghai Penxin then? I understand it would have to be sold back to the local people.
Chinese Economics Thread
- Thread starter Norfolk
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The farm was not sold back by Shanghai Penxin then? I understand it would have to be sold back to the local people.
Quickie
Colonel
Yes I didn't miss this bit of info. That's why I said: "What is really different is the battery itself...".
What I really meant by saying "...which probably looks like any other smartphone battery" is that the battery probably looks like any other battery on its outside appearance.
Im not to sure if it had to be sold or Nzders were to be given the first opportunity.Anyway it would be interesting because theres a rumour going around that Jiang Zhaobai , who is the owner of Shanghai Pengxin does not really want to sell, but to see if he can transfer the ownership to another one of his companies.
Shanghai Pengxin is doing something rather strange at the moment.My father is a shareholder in a Farmers Co-op Meat processing firm "Silver Fern Farm's" and recently received a letter from S.P outlining a proposal .to purchase a 50% share of the company for over $300million.Mean while I think company is only worth on the books alittle over $100-120 million. Not only that butSilver Fern will also a share of the profits that S.P. makes from the dristribution of Silver Fern products to over 3000 supermarkets it has access to in China.
Its strange in the sense that Silver Fern Farms is only hanging in there at the whim of the bankers..and why offer a share of the profits in its business ventures back in China.
Actuallyits like a repeat of 100yrs ago when the Bristish meat Barons offered a similar arrangement
Its strange in the sense that Silver Fern Farms is only hanging in there at the whim of the bankers..and why offer a share of the profits in its business ventures back in China.
Actuallyits like a repeat of 100yrs ago when the Bristish meat Barons offered a similar arrangement
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broadsword
Brigadier
I could see that New Zealanders were elated when SP reportedly wanted to unload the farm purchases purportedly due to the stock market crash in China. I was disappointed because it would possibly entail a big loss for them. Even though wholesale milk prices are now very low, it should only be temporary as the demand from China will keep growing. It is important that China secures a stable supply of farm produce to keep prices in check.
plawolf
Lieutenant General
If they already hold even 1% of the shares, buying another 50% would give them control of the company.
All the other major shareholders would know that as well, which is probably why they are offering good terms.
Buying a few shares is one thing, buying the controlling interest in a company usually requires the buyer to pay over the odds to persuade the existing majority shareholder(s) to relinquish control of the company.
I would need to look at the financial and accounting details to be sure, but on the face of it, I expect that Silver Fern's share price to be way below its long term trend range, and that there is one super majority shareholder who holds the overwhelming majority of shares (so you cannot take control on the cheap by secretly buying up small chunks of shares at market value until you gained majority voting rights like you could if there is no single majority shareholder).
The market share price thus likely does not reflect the true value of the company, especially as it should hold significant fixed assets in the form of land and cattle, who's value would probably eclipse the company's share price valuation by themselves.
Since Pengxin is effectively seeking to take control of the company (and all its assets), it's offer would have reflected the value of the company's fixed and other assets, as well as projected future cashflow and hundreds of other factors. In addition, it would have to pay an additional premium to take the controlling stake away from the current majority shareholder.
The offer is made primarily to the majority shareholder, but Pengxin had to make the same offer to all existing shareholders because Silver Ferns appears to be a publically traded company.
Whoops a big mistake on my part.
In my tiredness I referrted to Shanghai Pengxin as the proposed purchaser of Silver Firm Farms when I actually meant "Shanghai Mayling"The proposal is a 50/50 ownership with a new board having a Shanghai Mayling chairmain with the casting vote.
Anyway my father has just told me Im out of touch, with the vote going Shanghai Maylings way by 80 odd % a couple of weeks ago.
Shanghai Mayling is a subsidary of Chinas Bright Group
broadsword
Brigadier
Should be Shanghai Maling. Maling is a famous brand of canned pork and luncheon meat.
antiterror13
Brigadier
Would it get cancelled as well soon?