Squeeky Wheel
Growth, event-driven, currencies, macro

China Housing And Land Development: Low-Risk Going-Private Deal

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...

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