Lining Deducts Capital Opera From Grass Boat

Three and a half months later, an unexpected announcement came late.

In December 17th, 8032.HK announced the acquisition.

Extraordinary China said in its announcement that it had lodged an appeal against it, and the company will still be there.

Lining, the gymnastic prince, announced in August 31st that he intends to invest about 31% of his Li Ning Co stake in the new flagship and energy saving (special China predecessor).

After the announcement, the stock price of the extraordinary China opened high and reached a record high of HK $0.98.

The December 17th announcement constituted three trading days before and after anti takeover, with a cumulative decline of 33%, and in December 20th, the stock price closed at HK $0.315.

In just three and a half months, the stock price has fallen by 60%, the market value has evaporated nearly 7 billion 100 million Hong Kong dollars, and investors have suffered heavy losses.

What is the purpose of setting up "impossible mission"?

At the beginning of April this year, Lining brothers won the Hongkong GEM listed company with HK $700 million in cash - over 80% of the extraordinary China. Extraordinary China became another capital operation platform of Lining besides Li Ning Co (02331.HK).

Lining's star effect and expected asset injection concept push China's stock price soaring.

At the end of August, extraordinary China announced the three stock exchange takeovers and exploded the two tier market.

However, "new wealth" research found that the biggest gimmick of the capital operation - Li Ning Co equity injection was initially an "impossible task".

In accordance with the Listing Rules of the Hongkong stock exchange, the assets value, earnings and profits and the market value of the time when the extraordinary power of China changed hands has already locked the scale of assets that can be injected in the future, and the injection of Li Ning Co equity will definitely exceed the red line, thus forming an anti takeover, which is regarded as a new listing.

In December 17th, the announcement of the extraordinary China verified this judgement.

In fact, the anti takeover provisions are the key points to be avoided in the operation of Hongkong's shell buying. There is no reason why Lining's financial advisers will be negligent.

A market source revealed that from the very beginning, everyone knew that this is the "impossible task" in 2 years, knowing that it can not be done. In fact, it is only a way to raise the share price and create a selling point for the rights issue. After the stock price is successfully allocated to the stock market successfully, 30% of Li Ning Co's equity injection is the main selling point in the two issue of the rights issue in October. At that time, the matter will be dragged on until the end of the matter, or wait until two years later.

The market made a vote on such a sinister capital operation. After the three acquisitions in late August, the extraordinary China waned after a brief hovering. As of December 17th, when the announcement of anti takeover rulings took place one trading day, the stock price had fallen by 47%, and investors suffered huge losses.

Grass boats borrow arrows, meaning real estate.

With the help of Li Ning Co's equity injection concept, Lining succeeded in deducting a capital operation of a grass boat.

Extraordinary China announced the three stock exchange acquisitions, not using cash, that is, the introduction of Li Ning Co equity injection and pformation of real estate two major points.

Since then, while the stock price has been hovering at high levels, extraordinary China has made quick and realistic two rights issue and pumped 1 billion 400 million Hong Kong dollars in the two market.

At this point, Li Ning Co's equity injection concept has fulfilled its historical mission. The grass boat has returned to full value, and real gold and silver have been snooed for safety.

Through stock exchange acquisition and subsequent rights issue financing, Lining relaxed the Shenyang real estate project into the company's command, and provided adequate food and grass for its next project development, which made a key step for the smooth entry into the real estate industry.

The decision against takeover is expected for Lining.

For the big shareholder Lining, by leaping about between the two listed companies, they succeeded in leaping into the real estate development industry.

But the question is who to appeal to the huge loss of investors!