Tag Archives: 787

Globe Brand (787.HK) — Why is Feng’s reincarnation and potential behind?

Feng’s frankly stated that the number of shares he accepted for scrip dividends would not increase his holdings by more than 1.99% of the “enlarged share capital”, thus avoiding the potential mandatory offer obligations, and therefore the minority shareholders if they choose to scrip dividends. There will be no offer to protect the reserve price. To make such a major change, it is estimated that the key reason is that the CSRC asked Feng to make a clear disclosure on the stock dividend interest intention on March 14. It is not ambiguous. It will not be announced until March 28 after the stock scrip dividend plan is closed. Therefore, if Feng said on March 14 that he would break the dividends in full, it is believed that most of the minority shareholders feel that they will follow the stock exchange scrips because of the potential offer relationship. The end result is a large number of new shares. The net asset value per share was significantly diluted, but Feng could not achieve the goal of increasing the shareholding of the shares. It would be better to announce that it would not increase its holdings by more than 1.99% of the enlarged shareholders, so that the minority shareholders would not follow suit.
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That’s why I buy Global Brands (787.HK)

I saw a lot of people inquiring about the reasons for buying a brand of profitable brands. Therefore, I will briefly talk about the detailed analysis. I will wait until the net is removed in March, because the length will be slightly longer.

The reason why I bought the target is very simple. It is only for the “incidents” that may occur. I am not gambling on the reversal of my performance. I do not believe that the business of the target can be reversed in the next one or two years. Therefore, the purchase of the target is pure. It is an event-driven event that may occur. The main reason for the trigger event is that the company announced a special interest of 0.28 yuan per share, which can be used to scrip dividends, while the major shareholder has disclosed the intention to choose to use the stock to scrip. Assume that most of the minority shareholders will choose cash dividends. If only the majority shareholder chooses to scrip dividends, then the current shareholder will calculate the dividends of up to 810 million yuan, which will be converted into shares at a price of about 9 cents per share. After the completion of the scrip dividend, the major shareholder can exchange about 9 billion new shares, and its shareholding will be greatly increased from the original 33.88% to nearly 68%!
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