Privatisation of C.P. Pokphand (43.HK)

I bought C.P. POKPHAND (43. HK) about 11 months ago at 65 cts apiece because of its solid financials. The Group is a leading agri-food industry player in both China and Vietnam and its businesses range from feed milling, animal farming to food production. The Chairman and Executive Director Soopakij Chearavanont is the richest manin Thailand.

C.P. POKPHAND (43. HK) announced on 4 Oct 2021, Monday, after 4 days of trading halt, that it would be privatised at about 20 percent premium over the last trading price of 96 HK cents. This is solid news to me as I bought the stock about 11 months ago at 65 cts apiece and I received 7.6 cts dividend on 6 July 2021. It closed at HK$1.11 today, up 15.63% over 96 cents. My ROI based on the closing price is about 81.7% within about 11 months. Simply solid.

Interim dividend of HK$0.025 per share was declared and xd is on 11 Oct. The trailing p/e at the current price of HK1.11 is about 4.5x and the dividend yield at this current price was 10.27% for FY2020.

I would likely wait for the price to hit about $1.14 before I sell it. If not for this privatisation, I would have owned this stock for the long haul based on the solid dividend yield, solid financials, and low price-earnings ratio.

Anyway, it is good that most other stocks on HK Exchange are not doing well and the sale proceeds from C.P. Pokphand can be re-invested with good ROI again.

Prescientsuperphang
http://superphang.blogspot.sg