Sino-Foreign exchange shares soar 45%

The key to the 20% shareholding of the long-held ownership according to Ming Pao reported that the main holding of Taiping Insurance and Taiping Life, China Insurance International (0966), announced in Friday to 1 shares in the company for 10 shareholders in the form of a holding (1389) of the whole purchase of the same department of CAS Holdings. By the end of April before the suspension of the stock price, the valuation of about 44% premium, stimulating the civil service yesterday soared 45.6%.　　Brokers also optimistic about the integration of two companies brought about by the synergy, the Sino-Insurance International yesterday, the card also rose more than 8%.　　Since the Chang (0001) is the largest single shareholder outside the parent company, holding 20.96% shares and voting rights, the key to the implementation of the acquisition is whether the long-term is in favor of the acquisition. Wu Yulin, executive director and President of China Insurance, said at a press conference yesterday that the transaction was not known to the President, and that the other party did not respond to the acceptance of the acquisition and that it would only complete the procedure through an independent financial adviser Merrill Lynch, but he believed that shareholders should be accepted if the price was fair and By the deadline last night, the long truth still did not reply to the query.　　HSBC Securities believe that the long-term will accept the acquisition, because the long is in the public before the civil service to the listing of $0.95 per share of shares, and the civil service is currently lack of growth potential. Analysis: The opportunity of Tai an took the chance to open the company yesterday to a full-time high of $1.4, a sharp increase of 56% from the closing price of $0.9 before the suspension. The closing time still rose 46% to 1.31 Yuan, a deal of 83 million yuan.　　As for the Sino-Insurance International, it also rose nearly 13% and the closing price rose by more than 8% to 14.1 yuan.　　China Insurance International is a 10-share, 1 shares in the way, to the parent company (Holdings) acquisition of 47.8% Equity, and thereafter will be a comprehensive acquisition, the civil service will be privatized and revoked its listing status. By April before the suspension of stock price, equivalent to 44% premium.　　After the increase in the shares of CAs and PICC yesterday, the purchase price was about $1.4, which was about 7.6% higher than that of the civil service market, but it was still lower than the $1.88 in the 06 IPO. Securities brokers more optimistic: The proposal is a double win management pointed out that privatization is mainly for the integration of the civil service and the security of the two insurance companies, especially the logistics structure and resources. Linfan, the president of China Insurance International, said the acquisition was a major strategic milestone, integrating both the insurance business across the border with China and increasing the flexibility of capital use.　　Wu Yulin that two companies will become the 10th largest and the 5th largest property insurance company in the country after the merger. Brokers are generally optimistic about the effects of privatization. HSBC Securities believe that the shareholder is the biggest winner, because the company lacks the size and expansion of capital, the next few years may continue to lose money. For the China Insurance International, although the profit will be depressed, but the abundant capital of the civil service can strengthen the financial strength of the middle-insurance. Citigroup said the purchase price would be more attractive if it included cash. But the bank believes the whole acquisition is a "win" situation, maintaining a "buy" investment rating.