Tan Chong Int’l, TCIL 3k HK$

Tan Chong Int’l, TCIL 3k HK$: stock is +2% at $2.09, with volume back at thin levels, following yday’s significant sh/h transactions. According to the co filings, TCIL’s public float has now been restored to 28.6% (from 22.7%), above the min level required by the HK listing rules. Guoco will cease to be a significant sh/h, with its stake sold down from 19.88% to 3%. Nevertheless, we note that the “new shareholders” are a vehicle partially owned by the largest sh/h Tan Eng Soon, as well as his brother Dato Tan Heng Chew, hence the reported free float may not be accurate (in substance). While the filings did not give the transaction price, the “time sales” data reflects $2.60 as the price transacted. Should this be accurate, it provides an indication of the value that the Tan family places on this company.