BOCI believes that this repurchase will provide existing shareholders listed in Hong Kong with a high stock price exit or increase their actual shareholding, while the parent company and its concerted actions can also enhance their control over cnbm.
Zhixin Finance APP learned that BOCI published a research report stating that it anticipates cnbm (03323) profitability will significantly improve quarter by quarter starting in the fourth quarter. Previously, it upgraded its rating from "hold" to "buy" and set a target price of 3.87 Hong Kong dollars. Looking ahead to the approval of the buyback, BOCI expects cnbm to have further upside potential.
Recently, cnbm announced a conditional cash offer, planning to repurchase up to 0.8417 billion shares listed in Hong Kong, accounting for 9.98% of the total share capital, at a price of 4.03 Hong Kong dollars per share, a premium of 15.14% over the closing price on the previous trading day. Currently, the parent company of cnbm and its concerted actions collectively hold 45.02% of the shares in cnbm. If this repurchase offer is fully accepted and all repurchased shares are cancelled, the holding ratio of the parent company and its concerted actions will increase to 50.01%. The bank believes that this buyback will provide existing shareholders listed in Hong Kong with a high stock price exit or increase their actual shareholding, while the parent company and its concerted actions can also enhance their control over cnbm.
