China Animal Healthcare

China Animal Healthcare: Just an observation. Co is currently trading at $0.275-$0.28 compared to co’s offer to delist Sg shares at $0.30. At purchase price $0.28, and assuming the offer goes through at $0.30, the trade will net a return of 7.1% (2.0c) Of course, risks and costs include 1) The proposed offer not going through 2) Transaction costs 3) Costs of time value (unknown length of time for transaction to go through) 4) Illiquidity and possible adverse conditions. (Co-specific events, macro conditions) Overall, the probability of the transaction going through appears higher than if a 3rd party made the offer since the mgmt probably knows the financials of the co better than anyone else. Last traded price before the offer was approx $0.235, a potential 16.1% loss assuming the transaction does not go through and if the price falls back to that level. The stock also carries a dividend of 3 fen, approx 0.6c (2.1% of $0.28 if offer is not adjusted for dividend. Excluding transaction costs, Potential upside: 8.2% Potential downside: 16.1%