convertible bonds are bad for retail stock holders. Institutional bond holders can easily short stocks to take profit as they have so many shares converted from bonds in the future. But this probably is good for the company as they get the capital with minimal interest.
cvdpro, I am with you. The TPG deal does not make any sense unless Xin puts this money to work quickly (within 1 year). If no announcements on purchases or plans, I will consider selling my shares. For Xin to agree to this deal, they must have great confidence in the Chinese residential R/E market looking out 1 to 3 years. This company and management is a puzzle to me and I am holding only due to the fundaments on the balance sheet and income statement.
decoy, what if the balance sheet is fraudulent to begin with? I more and more suspect XIN has overstated its cash and earnings. It needs cash badly to continue buying lands for future projects. Remember, XIN's cash crunch does not happen this year. It has happened since last two years. XIN never bought any lands for a while until last year. At the same time, most XIN's existing projects are close to end. XIN just looks like a company that does not have that much cash on its balance sheet.
This is unfortunate development. But that's the way it is. The chairman is aiming for "accelerated growth" so he needs cash. He does not care too much if he owns 70% or 50% of the company. I guess the 60 m repurchase announcement is to get the stock higher so he can get a better deal with TPG.
One can only hope that some important project announcements will follow