China Animal Healthcare

China Animal Healthcare: Announced that it is in advanced stages of considering a possible delisting of its ordinary shares in HK, although co. will maintain its primary listing in HK. The delisting will be done by a selective capital reduction and all shareholders will be entitled to tender their shares for cancellation at a cash exit offer at $0.30. #China Animal Healthcare: Normally exit offers are priced at a premium so that shareholders have an incentive to accept the offer. Admittedly, not in all cases. In any case, the idea of a delisting suggests that mgmt is of view that the company is likely undervalued. Those shareholders who do not accept will have their shares transferred to the HK branch register and their shares will continue to trade on the HK stock exchange. Why the share price is not trading even closer to $0.30 could be due to 1) transaction costs 2) the possibility that it might not happen (this is still proposed and requires approval from authorities and sh/h)