Sinostar price has been trending to below 20ct now....Is the price weakness related to the PROPOSED ACQUISITION OF 70% EQUITY INTEREST IN DONGMING QIANHAI? This is a major acquisition and most importantly, also an interested party transaction. Hopefully this will not lead to a massive shareholder value destruction as it is a huge drain on Sinostar cash. If anyone has more insights, please share.
mslee888, i share your concern too regarding the 70% acquisition using rmb318 m cash. It's a big amount too. The target co. is loss-making and is completing some infrastructure. Apparently there are synergies to be enjoyed once the facilities are up & running.
Sinostar's 2Q17 profit is good, and would have been higher if not for the periodical overhaul of production facilities. The cash generated is amazing, and the net cash is now about rmb520 million -- ie, S$108 million -- without debt.