-3x Short China Discussion Threads

[zangdook] 22/11/2011 12:52

cash received in HL.

[liarspoker] 03/11/2011 21:06

Money in account around 28th November appearently.

A nice relatively risk free return.....and faster than expected too. :O)

[liarspoker] 26/10/2011 09:38

No - I was supposed to receive a blue and yellow proxy form from memory but they got send to my nominee name. I asked the nominee if they had received the forms but haven't heard anything back. I told them to approve the 380p offer in case they had received the forms. Money due in November I presume.

[zangdook] 26/10/2011 08:40

Presumably everything was approved on Monday - has anyone heard anything?

[3800] 11/10/2011 17:49

Your just lucky you didn't get offered less!

[zangdook] 11/10/2011 16:12

Thanks for posting that, Phil. They might at least have given us a few p more, so we didn't feel completely stupid for showing faith in the company and not taking the cash when it was first offered.

[philw2009] 11/10/2011 15:28

So I guess that's it! They're going to take my shares by force.

Bye bye CHNS, it was fun whilst it lasted.

[philw2009] 11/10/2011 15:28

Scheme of Arrangement - Important information that requires your attention

What is happening?

The Boards of China Shoto and Two Stars Invest Ltd (a company owned by the directors of China Shoto, other than Peter Maurice Crystal) have announced that they have reached agreement on the terms of a cash acquisition, by Two Stars, of China Shoto. The acquisition is to be effected by means of a Scheme of Arrangement under Part 26 of the Companies Act 2006. As a holder of China Shoto Shares held within your Hargreaves Lansdown Vantage SIPP you have been offered 380p for each China Shoto Share held. The Scheme is subject to Shareholder approval at a General Meeting and a Court Meeting to be held on 24 October 2011.


Do I need to take any action?

If you do not wish to register a vote then you don't need to take any action. If approved, China Shoto Shareholders as at close of business on the 10 November 2011 will receive 380p in cash in place of each Share held.

When will I receive this payment?

If the Scheme is approved it will become effective on 14 November 2011 with the resulting cash proceeds expected on or around 28 November 2011. You will be written to again upon receipt of these funds, or alternatively upon the Offer not receiving the required approval.

[zangdook] 11/10/2011 04:05

Is just another voluntary tender, or is it a compulsory purchase?

If anyone has any documents related to this (including the original 'Letter to Shareholders' from earlier this year) a copy+paste here or email to zangdook AT yahoo.com would be greatly appreciated.

[caney] 10/10/2011 14:32

Same as the 1st offer - £3.80

[pomp circumstance] 10/10/2011 14:29

sell at what price?

[caney] 10/10/2011 14:24

Just found out that the scheme to give us another opp. to sell our shares has been agreed, subject to shareholder approval at a general meting and court meeting, both on 24th of this month. The scheme is then subject to court sanctioning on 11th Nov. Assuming all goes well,the scheme should become effective on 14th nov and we should be paid soon after.

[zangdook] 05/9/2011 11:34

A month since the last post.

Has anyone heard any more about this? I have had no reply from the company or from my broker to my requests for a copy of the Letter to Shareholders. I wonder if there have been further developments which no-one has troubled to inform me of.

[zangdook] 05/8/2011 03:55

Well, I'm trying to reconstruct what the letter might say.

It sounds as though we're being asked to approve a compulsory purchase of all shares; ie not being asked to offer our shares at present, though clearly approving compulsory purchase carries that implication. Since the directors hold over 90%, this approval is simply a formality; it makes no difference whether we vote or not. So it seems to me that the thing to do now is keep quiet (on principle I can't vote on a motion I haven't seen) and when they come back to buy the shares I'll have to see how the purchase is presented (assuming my broker deigns to let me see the documents).

When this happened with CBI their notice of redemption read (in part):

If you do not agree that the redemption price of GBP0.165 per share represents the fair value of the Remaining Shares, you have a period of 30 days ending on 20 September 2010 to agree a redemption price for the Remaining Shares with the Company. Following 20 September 2010, the provisions of section 179(9) of the Act shall be applicable and you will have the right to designate an appraiser who will fix the fair value of the Remaining Shares together with an appraiser appointed by the Company and an independent appraiser and the value fixed by the appraisers shall be binding on you and on the Company. If the redemption agreement is not returned by 20 September 2010 and you have not contacted the Company to agree a redemption price before 20 September 2010, you will be deemed to accept the redemption price of GBP0.165 per share and your shares will be redeemed by the Company at that price.



However, CBI was incorporated in the BVI. CHNS is incorporated in the UK, so the rules may be different. I did once have some shares compulsorily purchased here and I don't recall being asked if I thought the price was fair. Does anyone here know more about this?

[caney] 04/8/2011 15:15

Zang,

My friend has also receieved. Her's was emailed by reedsmith.com

C

[zangdook] 04/8/2011 14:20

Ok, but I'd like to know what is actually being proposed. All my broker is saying is 'Do you agree, let us know by next week' without telling me what I'm supposed to be agreeing to. It's like reading one of those idiotic 'RNS rewritten' articles on some silly websites which add no new information but take away all the subtext and some of the substantive content by changing the wording.

[liarspoker] 04/8/2011 13:05

Mattjos, CHNS state in the shareholder letter that subsidiaries will be closed for the moment. I intend to sell. 380p will do me. Nicel ittle short term gain for what I thought would be a longer term hold.

JT - good thinking but my letter is already in the post.

Zangdook - in short: business is terrible due to lead poisoning elsewhere. This is having a knock on effect on the industry.

[jtcod] 04/8/2011 01:51

Seems to me guys that it may be worth writing and offering to sell at a cheeky price because a) any agreement is a private arrangement between you and the company and b) this offer could quite possibly be prompted by an agreement to sell the company provided they can deliver the company free of private shareholders.

What's the worst they can say? No

They may come back with a compromise offer.

Just my two penneth worth. Good luck to all holders.

[mattjos] 04/8/2011 01:06

Doubt, on what i saw when i visited, that China Shoto were affected. Closure of the other plants would be a help for them.

A great pity its gone from London now. imagine most will take the cash and move on. it'll probably all be forgotten about before it pops up elsewhere or is taken over by the likes of Exide

[zangdook] 03/8/2011 08:20

Not a huge surprise. I remember from CBI, which did a similar thing, that if you rejected the offer you were invited to suggest a price that you thought was fair. I don't know any more, as I had already accepted the initial tender offer with CBI.

Anyone planning to hold on here regardless? Listing in HK in 2013 would be fine by me, but they may make the offer compulsory.

[philw2009] 02/8/2011 20:34

Email from HL today:-

China Shoto: Proposed Scheme of Arrangement

What is happening?

China Shoto has announced proposals to implement a Scheme of Arrangement to takeover all remaining Shares not held by Two Stars Invest Limited at a price of 380p per Share. The proposals are subject to receiving sufficient interest from Shareholders wishing to sell their Shares.

Why has the Scheme been proposed?

The Board of China Shoto commented "Following the closing of the Offer (Tender Offer in April 2011), the Company has received over 30 requests from Shareholders who missed the Offer deadline but still wish to sell their Shares.

"At the time of the Offer, we understand that some Shareholders may have opted to remain with the company based on a belief that the Company may list in another jurisdiction, as expressed in the Offer circular dated 30 March 2011. However this is no longer the case. Given the difficult economic environment and weakening market conditions in the batteries and power supply sector in China..., the Company no longer has any intention to list on another stock exchange in 2011 or 2012." (Source: Letter to Shareholders, 29 July 2011)

What do I need to do?

The Company is asking for Shareholders to give an irrevocable undertaking to vote For the Scheme. As a result if you wish to vote For the Scheme please call us on 0117 980 9912 or email us at [e-mail] before our deadline of noon on Thursday 11 August 2011.

[zangdook] 26/7/2011 12:42

...if they haven't been put off by Moody's getting moody about WCC et al.

I see the investor relations tab has now completely disappeared from the website - not very encouraging. I was going to ask if anyone had heard anything from the company, but to my surprise it's less than three months since delisting - seems much longer.

[liarspoker] 26/7/2011 10:51

That would be nice philw2009.