Ive stated before on this forum, that with this significant discount to cash and assets, if I was the CEO (who owns 52%) I would take this private. He cld make a $1 bid and basically get all the assets for nothing.
Interesting, mentioned in the same Globe article today is Hanfeng Evergreen. Late today, that CEO made a bid for the entire company.
Hanfeng receives $2.20-a-share offer from president
2013-01-08 20:42 ET - News Release
Mr. Loudon Owen reports
HANFENG EVERGREEN RECEIVES PRIVATIZATION PROPOSAL
Hanfeng Evergreen Inc.'s board of directors has received an unsolicited non-binding proposal from Xinduo Yu, the company's president and chief executive officer and the holder of approximately 20.2 per cent of Hanfeng's outstanding common shares, pursuant to which a company wholly owned by Mr. Yu would acquire all of the outstanding common shares not owned by it at a price of $2.20 in cash per share.
The board of directors has previously formed a special committee of independent directors consisting of Loudon Owen (chairman), Edwin Nordholm and David Thomson to review and consider the privatization proposal. The special committee has retained the services of Deloitte LLP to provide an independent valuation and financial advice, and has engaged Osler, Hoskin & Harcourt LLP as its independent legal adviser. The special committee will respond in due course, having regard for all applicable legal and regulatory requirements.
The board of directors cautions shareholders and others considering trading in securities of the company that it has only received the proposal and no decisions have been made by the board of directors with respect to the company's response to the proposal. The proposal is non-binding, and there can be no assurance that any transaction will be completed or, if completed, of its terms, price or timing. Hanfeng will not be providing further comment at this time, but will provide updates as further material information becomes available.
As a result of the process currently under way by the special committee, the decision was made to defer the company's annual meeting of shareholders until Feb. 13, 2013.