In the posting Would You Bet On XiDeLang (XDL) ???, I highlighted the new twist in bold published on BTimes.
Let me repeat once again:
- "Ding will reject the offer from Navis, and instead put in a rival proposal to create liquidity in the market place," a person familiar with the company said yesterday.
Think about it.
Fact: The talk with Navis was purely informal.
Fact: The talk happened FEW MONTHS ago.
And if that's the case, why on earth is XDL making such a big fuss over it? And worst still Ding is said to reject the offer from Navis.
If he had NO intention to accept the offer, an offer made few months ago, why make such a big fuss? Heck, XDL was even suspended so that it can make this announcement of 'no substance' (Yeah, in my flawed opinion, there's no substance. It was an informal discussion and no price was even mentioned! )
But note the snakey spin put on it.
- "put in a rival proposal to create liquidity in the market place,"
And the reply was not shocking at all.
- Reference is made to the news article published on page B2 in the Business Times entitled “Xidelang board to meet over Navis’ buyout offer” in particularly the following sentences:-
“…instead put in a rival proposal to create liquidity in the market place”
“It will be a script based reward exercise”
“….Ding will likely propose that XiDelang to undertake a bonus issue and a warrant exercise so that…..”
XDL, after having made due and diligent enquiry with the Board of Directors, major shareholder, namely HongPeng International Holdings Ltd and all such persons reasonably familiar with the above matter, wishes to inform that the Management has merely engaged in exploratory discussions with various professionals to undertake various corporate proposals to enhance value for the Company and shareholders. However, no concrete plans or proposal has been finalised at this juncture.
XDL will make the necessary announcement to Bursa Malaysia Securities Berhad (“Bursa Securities”) in a timely manner in accordance with Bursa Securities Listing Requirements, should there be any further development on this matter.
Another exploratory discussion only.
NO CONCRETE PLANS yet!.
Is this talking to air or talking air?
I guess when the boss is frustrated with the stock lousy performance in the exchange, anything is possible!
And best of all, BTimes carried yet another article on XDL.
- Xidelang in talks to boost shareholder value
By Francis Fernandez Published: 2012/01/12
KUALA LUMPUR: Xidelang Holdings Ltd, China's second largest maker of running and skateboard shoes, says it's in exploratory discussions with various professionals to undertake various corporate proposals to enhance shareholder value.
The company said this in a statement to Bursa Malaysia yesterday, in response to an article in Business Times which stated that the mainland-based company is considering a script-based exercise to reward its shareholders.
Business Times had reported that Xidelang could introduce a bonus-cum-warrants exercise so that shareholders, who did not directly benefit from Xidelang's growing business, will be rewarded in the market place.
Xidelang's share price had fallen by as much as 35 per cent last year to 29.5 sen a share.
This year, however, the shares are up by as much as 25 per cent to close the trading day at 38 sen.
Up to the nine months ended September 30 2011, Xidelang's pre-tax profit stood at RM84.52 million, while for the 12 months of 2010, the company's pre-tax profit stood at RM106.78 million.
As it stands, Xidelang is the only China-based company traded here with a consistent dividend policy in place.
Xidelang paid out a 1.5 sen dividend in 2010 and a one-sen dividend the following year, giving shareholders a 12-month dividend yield of 2.63 per cent a year.
The company also has about RM134 million in cash, while its book value per share comes in at just under 60 sen.
Xidelang is the third China-based company to be listed on Bursa Malaysia.\