After 18 months of suspension, Xin Yuan Enterprises (1748 HK), a maritime logistics and vessel chartering operator, has announced a voluntary pre-conditional Offer.
Liu Jichun, holding 20.71%, is offering HK$2.21/share. The price is final. The offer is conditional on a 50% acceptance hurdle. Presumably, founder Chen Maochun (26.36%) will not tender.
The pre-con is that shares resume trading on the 30th October. This may be waived. It’s a shrewd move by Liu.
A Hobson’s choice is a free choice in which only one thing is offered. In this instance, shareholder may simply tender if shares remain suspended. And shares will be delisted if suspension remains in force
Xin Yuan is/was illiquid. Look away now if this is not your bag.
Xin Yuan is suspended, so there is nothing to be done right now.
The two key shareholders - Liu Jichun and founder Chen Maochun - don’t appear to see eye to eye.
Liu’s Offer - and the timing - is geared to take advantage of investor fatigue.
He may get to 50%, and hence control.
The question is whether Chen counters.
All this may occur while shares remain suspended.
However, my bet is that shares resume trading during Liu’s Offer.