China Animal Healthcare

China Animal Healthcare announced last Wednesday that it had entered into a conditional Subscription Agreement with two investors. Subject to the satisfaction of the conditions in the Subscription Agreement, CAH will raise total amount of SGD47.7m primarily used to partially fund the possible delisting offer. The potential delisting from Singapore is very likely to happen. We also expect some earnings concentration post delisting. The company’s cash exit offer of SGD0.30 will yield a return of 15% based on the current share price of SGD0.26.