re: Ann: Intention to redomicile - supplement...
Sorry to be the bearer of bad news guys but I dont like this one bit. My interpretation is that ATR will move to become a public company in Hong Kong but not necessarily a listed company on the Hong Kong Stock Exchange (though they will look towards this in the future).
"The Hong Kong re-domicile will give the Group the flexibility to raise this capital on the ASX and/or potentially via a listing on the Hong Kong Stock Exchange (HKEx)."
So I interpret this as the company basically registering in Hong Kong but essentially delisting while keeping CDIs on the ASX :S. Liquidity in this company has been absolutely dreadful for a long time with low volume and market static, This would probably only make it worse.
This deal concerns me in many ways, not only will shareholders be faced with a potential loss of the regulatory protection they get as holders of an Australian company but they could also be looking at some potentially dilutive effects with little ability to do anything about it and no sweetener.
If the company wants to move to Hong Kong I think they should merge with an existing company in Hong Kong or have an IPO there. Existing minority holders on the ASX should be bought out if they dont want to list here normally.
I can see why so many steer away from companies like this with such a large directors interest.
Selling out a few months ago because of opportunities in companies that were actually interested in operating I was hoping to jump back in when it looked like things would get started but I think this is the nail in the coffin for me o this one now. Sometime there is a good reason why stocks appear undervalued.
ATR Price at posting:
$2.50 Sentiment: Sell Disclosure: Not Held
