ChinaFish on uptrend

Posted by albertlaw > 2014-01-09 09:59 | Report Abuse

This type of warrants a bit like covered warrants except that it is issued by China Fish(C> F) itself and not by third party like financial institutions.C.F got to benefit from the US40mil(S$50mil) as working capital,C.F like suffering from indigestion after swallowing another bigger fish,Copenica which is doubled its (C.F's capital) .Many here get excited the CF's share need not be pushed to match the exercise price of 52cts from its curreent 38cts as many warrants are trading on sgx not necessarily be in the money i.e exercise price cum warrants need not be < market price of C.F..many times the warrants are trading at a premium..the share price of C.F will not move upwards when investors forsee no expoential increase in net profits from its acquisitions..many feared C.F may be dragged down from the huge debts incurred from taking over Copenica and susequently C.f will be unable to continue its dividend paying policy or paying miserly dividends in the future Blanchard ( Date: 06-Dec-2013 02:09) Posted: Carlyle gets warrants to up stake in China Fishery by up to $40m December 5, 2013, 5:44 pm Undercurrent News China Fishery Group has agreed to give 96.15 million warrants to its second largest shareholder, CAP III-A, a subsidiary of the private equity Carlyle, in a deal that could give it up to $40 million. The warrants allow CAP III-A to purchase 96.15m shares in China Fishery, for $0.52 per share, or a maximum of $40m. If CAP III-A exercises all its warrants, it would increase is stake in China Fishery from 11.09% to 15.08%. China Fishery?s largest shareholder, Pacific Andes Resources Development Limited, would in turn be diluted from 70.51% to 67.35%. The warrants will not be listed or traded on the main board of the Singapore stock exchange, where China Fishery is listed. CAP III-A is a wholly-owned subsidiary of Carlyle Asia Partners III. Carlyle has been a shareholder in China Fishery since July 2010, when it acquired 113m shares at $1.85 per share. The use of proceeds is currently intended to be utilised as additional working capital of the Group. ChinaFish agm on 27 Jan..shd creep up soon.. Read an article in Undercurrent News, commenting on China Fishery?s 2013 annual report..... for info..... Lafayette, China Fishery's processing vessel. Lafayette, China Fishery's processing vessel Eva Tallaksen - January 3, 2014, 6:19 pm In its annual report, the Singapore-listed company mentions an impairment loss of $35m for its ?processing vessel?. While it does not identify the vessel in question, it is most likely to be Lafayette. The 228 meter-long Russian-flagged mothership is considered to be the world?s largest processing vessel and believed to be Pacific Andes? only processing ship, if one excludes Victoriya, of which it denies ownership of. China Fishery?s report does not mention the cause of the impairment, and the company did not return requests for comment to Undercurrent News. According to sources, Pacific Andes was canvassing equipment makers in 2013 with a view to equip Lafayette for Russian pollock and salmon processing. However, these plans are believed to have been shelved, a source recently told Undercurrent. The company has never commented to Undercurrent on the news. In its report, China Fishery only said the impairment followed a review on ?the recoverable amounts of the processing and fishing vessels and fishing and plant permits based on their value-in-use?. The assessment has led to the recognition of impairment loss of $35m for the processing vessel, compared to no impairment in 2012, it said. The same assessment also led to an impairment of $9.918m for ?certain fishing vessels and plant and machinery that management has identified for scrapping?, it said. The company also did not return questions as to the names of the vessels. $2.5m Peru acquisition The report also reveals that China Fishery spent $2.5m during the year to acquire the entire issued capital of J.Wiludi & Asociados Consultores En Pesca SAC. J.Wiludi & Asociados owns a fishing vessel, and the transaction was determined by management to be an ?acquisition of assets rather than

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6 comment(s). Last comment by Emirates 2014-02-27 07:55

albertlaw

287 posts

Posted by albertlaw > 2014-01-15 17:30 | Report Abuse

Those who have heeded or bought have made money liao..I left those from rights issue(34cts)..Even if u had bought at a high of 59cts also more than break even(59cts+34)/2 =46.5 based on today's closing prices..hope it is up up and away

Buy Sell China Fish SGX 0.470 175,000 0.475 30,000 0.475 +0.050 0.430 8,109,000 0.480 0.430 0.588 0.315 6.97 0.0149

albertlaw

287 posts

Posted by albertlaw > 2014-01-16 09:10 | Report Abuse

48.5-49cts now as at Jan 16..more upside?

Sources: China Fishery could buy more in Peru, as Diamante owners still looking for exit





January 14, 2014, 6:48 pm



Eva Tallaksen Alicia Villegas, Jeanine Stewart





Having acquired Copeinca, China Fishery Group could now be close to making more acquisitions in Peru, with both Pesquera Diamante and Hayduk named as potential targets, sources told Undercurrent News.



Another Chinese fund, which sources did not name, is also said to be in talks to acquire Pesquera Diamante, Peru?s third largest fishing company by quota.



According to one well-placed source, Pesquera Diamante has hired Credit Suisse to arrange for a sale.



?China Fishery is now close to locking the Diamante acquisition, and if that succeeds they will hold more than 25% of the Peruvian fishing quota,? this source told Undercurrent News.



Diamante holds 8.5% of Peru?s anchovy quotas, after Copeina/China Fishery (16.9%) and Tasa (14.1%).



Several sources said Diamante is also in talks with another Chinese private fund for a sale.



It has for some time now been said that Diamante?s private equity owner, Enfoca, is looking for an exit for its 18% stake.



But if a good offer is made, the entire company could be sold, said sources.



The remaining 82% shares are owned by the Ribaudo brothers, Juan Enrique and Fernando.



Diamante?s CEO Manuel Salazar, Enfoca and China Fishery declined to comment to Undercurrent.



In March 2013, news outlets had reported that South Korea?s Dongwon was close to making a move for Diamante. However, the deal then reportedly collapsed, with no news since then.



According to sources, it is well known in the Peruvian industry that China Fishery is still interested in buying up more quotas in Peru. ?China Fishery always keeps an open eye,? said one industry executive. ?They will go for any company.?



Some, however, questioned how China Fishery would finance such a deal. Its purchase of Copeinca, completed late last year, cost it $787.69m in cash and took its total debt to $1.596bn.



The rumors come as Peruvian companies are becoming increasingly frustrated with the government and its regulation on anchovy fishing. This could make them more inclined to sell, said industry players.



?The problem is the government?s very bad administration,? said one executive. This has frustrated businesses, he said. It has also affected their cash flow, and subsequent valuations. ?The value of any company is their cash flow. In the two last years the administration, without any discussion, has restricted the Peruvian quota of anchovy by about 40%. The cash flow reflected the issue and of course the companies? values are lower than they could be.?



In this situation, he added, Chinese companies could see an opportunity to come in at a cheap price, ?wait two or three years and gain 40% or 50% in value?.



Another Peruvian executive echoed this view.



?Foreign companies along with high level politicians have achieved what they wanted: Peruvian companies can be sold at a cheap value, since Peruvian politicians have demolished the fishing industry,? said this source.



He added Enfoca was keen to exit Diamante, having owned it for several years. However, despite years of persistent rumors of a sale, ?eventually the company ends up not being sold?, he said.



$85m per 1% quota



If a deal were to happen, Diamante could expect to get the same valuation (85 million per 1% of quota) as Copeinca did for its sale to China Fishery. For Diamante, this would represent $722.5m. For Hayduk, it would mean around $561m.



?However, only a strategic investor would pay such a high price,? and only if the synergies are there, as is the case with China Fishery, said one source.



?The key question is how the interested party would appraise the human consumption business Diamante has ? canned and frozen fish, including a distribution brand,? this source added. ?Diamante?s owners are good entrepreneurs, the company is well managed and it?s a success story.?





Hayduk restructuring



There is also talk surrounding Pesquera Hayduk, Peru?s fifth largest fishing company by quota.



Hayduk restructured recently, appointing new management and a new CEO. The company is also said to be very close to China Fishery Peru.



Although one source linked the restructuring to a possible sale, another said this was the end of a long process, with the former CEO having completed his task. ?In my opinion, as well as Diamante, if they receive a nice proposal, they will sell,? said one executive.



Growing foreign ownership



An acquisition by a Chinese company would heat up a debate that China Fishery?s purchase of Copeinca triggered in Peru: the issue of foreign ownership of the nation?s fishing quotas.



With nearly 17% of Peru?s fishing quotas, China Fishery Peru/ Copeinca is the country?s largest fishing group, ahead of former leader Tasa (14.1%).



This has

albertlaw

287 posts

Posted by albertlaw > 2014-01-22 23:33 | Report Abuse

China Fish has hit its long term bottom..

https://www.flickr.com/photos/carica...61851264/:s12:

albertlaw

287 posts

Posted by albertlaw > 2014-01-28 00:05 | Report Abuse

China Fish double bottom already?..https://www.flickr.com/photos/caricature/11961851264/

stockpicker ( Date: 27-Jan-2014 18:23) Posted:



Yes ..96 million shares all for a price of USD$1/= but Cap-IIIA can only convert to normal share when the price reaches SGD 0.52. This is covered in their Annual reports and brouchers. Think the idea is to induce Cap-IIIA not to sell but to push up the price to 0.52 so that CF can get more funds and push up the value of the share price. It is dirty trick and they did that before in 2010 when CF offered 26 mil warrant for USD$1 to an independent party with exercise price of $2.10 when the share price was $0.8.. the share price was pushed to a high of only $1.30. 35 million warrants expired in 2013.

As for the gravestone doji, if it were to happen at the bottom of the bearish trend follow by a up candlestick with solid volume, it could mean a reversal about to take place otherwise, it suggests a continuation..

Best of luck

albertlaw

287 posts

Posted by albertlaw > 2014-01-28 00:08 | Report Abuse

Today's AGM at Intercontinental Hotel..shareholders will fuming over CF's 96,153,846 warrants issued to Caryle Group at US$1 only a great dilution to existing to existing shareholders and the Major shareholder Pacific Andes voting in favour..it's like selling CF away for a song though the warrants can only be exercised at 52cts per share

Mano's question why not offer to all exiting shareholders instead of being bias in favour of Carlyle Group and that this motion be put off..it appears this was to help Carlyle which had bought CF at a high of > $1.80 per share and to reward them for staying with CF in the acquisition of Copenica and to lower the overall cost of Carlyle's purchase of CF..certainly not favourable to most shareholders present at the meeting

Emirates

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Posted by Emirates > 2014-02-27 07:55 | Report Abuse

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