Big Banc Split Corp T.BNK

The Deal Cannot Be Closed in July

[gamefan]

Right now they don't have the money to close the deal.
On July 27th, there will be a shareholder meeting to approve issuing new shares for the deal. So the deal depends on if it is approved and if all the new shares can be sold out.

Here is the original news release in Chinese.
https://finance.sina.com.cn/roll/2016-07-12/doc-ifxtwchx8538146.shtml

[herrstock]

I can read simplified Chinese. I read through your supplied link. Inside the news release, the first part, it talked about Geo Jade had fulfilled the obligation of paying all interest to the issued 2015 bonds. The second part says they are going to hold a shareholder meeting for electing chairman, vice-chairman etc on July 27. It also listed the resume of several candidates. There is NOT A SINGLE

[ImFineThanks]

Thanks for clearing that up!

[BargainHunter88]

There is no mention of issueing shares to purchase BNK.TO. The shares were issued twice in 2015 for about $300 million in total to shore up balance sheet.

[RockLobster1]

I do find it hard to believe that a large company goes to all this trouble to make a large strategic purchase, in a country that China is strategically investing in.... and then months after the deal when it is suppsed to close... they realize they don;t have the money... suddenly need to hold an urgent meeting to approve issueing shares etc. It's possible but would show a level of

[LordIskander]

BNK mgt should have had incentives in the deal... ie after Aug 1 the price is 2.25.   You seem to think they have the upper hand in the negotiation. That asset is one nobody wants (apparently).

[robbie80]

The plan of agreement is between Bankers and Charter Power Investment (a private company). It seems to me that Charter Power Investment will pay Bankers at the end of July. After the deal is closed, the public company Geo-Jade will  issue shares to Charter Power Investement. Charter Power Investement will get bonus of finder's fee, interest and discounts of private placement. 

[braincloud]

That may be true but from what I was told there is still the issue of receiving permission to exchange yuan for Canadian dollars. What you say could be the step before that. I just don't know for sure.