China Housing & Land Development (NASDAQ:CHLN) announced a few days ago that the board had approved a 1 for 50,000 reverse stock split with the intention of going private. Fractional holders will be paid $1.75 per pre-reverse split share. Based on closing price on August 26 of $1.67 that offers 4% on up to 49,999 shares. I expect the deal to close within 3 months, possibly sooner (more on that later).
Whenever I see these going private deals - which have been very popular for Chinese companies recently - I look at five factors: 1) What is the spread? 2) Is the financing certain? 3) How likely are shareholders to agree? 4) How quickly will the deal get...
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|