Well, as predicted Oaktree needed to sell their stake in AIQ. But, today's deal to sell the stake at a significant loss to an obscure Chinese real estate company, was completely unexpected. This is truly the strangest deal, I've ever seen. What value does a Chinese real estate company provide to a US based provided of radiology and oncology services? As always, I am holding onto the stock despite what has now become a massive loss, because ultimately AIQ has a solid business in the US, so in theory, nothing much has really changed.
However, I assume there are two significant worries here:
1. The Chinese investors will run this company into the ground, much like has happened repeatedly with other public US-based companies Chinese "investors" have acquired (e.g. STRI)
2. Creditors may frown on the deal, which would pose serious liquidity issues for AIQ.
I really don't know how to handicap the risks above, but presumably the massive decline in the stock price today on news of the deal is related to the above concerns.
Disclosure: I am/we are long AIQ.