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Yongye International, AŞ Message Board

  • communismobamastyle communismobamastyle Apr 4, 2013 12:43 PM Flag

    Loan expiration on Apr 15?

    what is the value of the loan that ABAX is giving them and expires on April 15? Does it even matter with all the cash they will have from 4th and 1st quarter collections?

    Sentiment: Strong Buy

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    • Be careful, do not mix the cash owned by the company and the cash ABAX is loaning to Full Alliance to take the company private. ABAX has an outstanding loan offer at $50m and CDB at $232m both to Full Alliance which is the company of Mr Wu. The cash the company has in the books belongs to all shareholders and cannot be used for the acquisition driven by a group of shareholders, yes if they succeed to take the company private and be the only owners, then the cash can be distributed to them to help them pay back the loans but not until the company is private. Right now they have to come up with enough cash to buy all the outstanding shares that they do not own yet or about 39+m shares which at $6.60/share would mean around $260m.

      Sentiment: Buy

      • 2 Replies to alan74z
      • I guess I worded my message completely wrong, but all of you have made the same point. The Loans should not be hard to get (from anywhere) considering how much CASH the company has. What risk is there to the loaning institution if the company can turn right around after going private and pay the loan back with cash on hand? This is the point I was trying to make. Does it really matter if ABAX pulls out? Won't there be another institution willing to lend to a company with enough cash to pay the loan right back after going private? What am I missing?

        Sentiment: Strong Buy

      • Full Alliance is not Mr. Wu's company. Full alliance is owned entirely by Ms. Zhong Xingmei. She was a large shareholder of the company at the time of it's reverse merger into the US. I haven't followed this company closely for quite a while, but it is interesting to see what has come to pass! I've always been curious to see how this one plays out.

    • this is cash for a buyout.
      A company can't buy themselves with their own money