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. We note that move could spur further interests in privatization plays of S-Chips on STI. Recall that earlier in April, Fund managers from 6 China based PE Firms visited SG this mth to explore opportunities for investing in some Schips and local co’s with operations in China. Co’s met included World Precision, Dukang Distillers, Q&M Dental, China Aviation Oil. Note that all theses co’s all trade at low single digit P/E earnings.