ORG is taking a solid step towards acquiring CPMC, with receiving SAMR clearance and management selling shares in Huangshan Novel to raise funds. We recommend waiting for Baosteel to raise its Offer.
What is covered in the Full Insight:
Introduction
SAMR Approval and Pre-Conditions
ORG's Financial Strategy
Baosteel's Position and Strategy
Investment Recommendations
Boomeranged on Wed, 4 Sep 2024 00:55
Baosteel failed to hit the 50% minimum acceptance condition and let the Offer lapse without taking any further actions. Now it's time to see ORG's subsequent progress, which could be "tricky".As analyzed in the insight, since the return on Huarui Offer is not attractive, making the deal "uncomfortable", switching to other arbitrage opportunities is also an option if without Baosteel's higher Offer