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Mir ist es doch tatsächlich gelungenKontakt mit Richard Li (COO) aufzunehmen! :-)
"Dear *****
Re demerger, we are still working through the process to get Tax Office approval but this has taken much longer than we anticipated. Once we have more to say we will inform the market. Re sports betting we indicated that this would be towards end of September upon completion of IT development.
More importantly, On Thursday 31/7/08, SSI reports that it has concluded an agreement with a financial institution to invest US$20 mil in its wholly owned China gaming subsidiary CEH and that CEH will be seeking listing on the Hong Kong Stock Exchange. The CEH investment is in the form of a convertible note, and converts upon listing of CEH on the HKSE. Conversion price will be related to listing price. This is an absolutely win win deal for all parties, for the CN investor and for SSI and its shareholders.
SSI gets US$20 mil to expand its business in Shanghai and it is believed, nationally and by time it is listed, it will be profitable according to the company. HKSE will give CEH a much higher premium than what ASX has given SSI to-date. Hence, the end result is, subject to the valuation of CEH by time of listing,SSI will own a majority of CEH, with CEH by then probably worth over US$1 bil. Don't forget BDO Corporate Finance valued CEH independently at between A$796 to $914 mil early this year just for its Shanghai business. Inclusive of any additional licences it will now be in a position to secure before listing, US$1 bil is not out of the question.
The most important aspect of this deal for SSI is that it now has the capital to support the business moving to profitability as well as any additional national licences and activities. Hence, by raising the funds in CEH but priced at a future price of CEH upon listing on HKSE some months later, SSI shareholders have avoided what will otherwise by a bigger dilution if the US$20 mil has been raised in SSI shares today. When the market understands the implications of this deal, that a major financial institution is prepared to back SSI even at these depressed times, by investing now to secure stocks in CEH at a future much improved company price, investors will start to see an undervalued opportunity they have missed so far while the CN investor has discovered this and backs the company with cold hard cash, then the SSI price will start to reflect a strong premium on the ASX.
This is what our Chairman said at the November 2007 AGM:
Since we already have over 2 years of trading track record and a large number of outlets established, we now qualify for a licence to franchise our operations throughout China. This is one option that would enable us to fast track our business model into other provinces and cities while minimizing capital requirements. This national franchise licence needs to be supported by a national gaming licence which, again because of our network size and trading history, we also are qualified to seek. The successful award of national licences would position us to distribute Welfare and Sports Lottery gaming products nationwide, over both the Internet and “bricks and mortar” platforms. This would have significant ramifications for how we grow the company moving forward and will add substantial enterprise value to our company.
With the addition of the new capital, CEH can now grow and secure these national licences which will add substantial enterprise value to SSI.
Richard Li" ...
Sincerely,
Warren B.
"Dear *****
Re demerger, we are still working through the process to get Tax Office approval but this has taken much longer than we anticipated. Once we have more to say we will inform the market. Re sports betting we indicated that this would be towards end of September upon completion of IT development.
More importantly, On Thursday 31/7/08, SSI reports that it has concluded an agreement with a financial institution to invest US$20 mil in its wholly owned China gaming subsidiary CEH and that CEH will be seeking listing on the Hong Kong Stock Exchange. The CEH investment is in the form of a convertible note, and converts upon listing of CEH on the HKSE. Conversion price will be related to listing price. This is an absolutely win win deal for all parties, for the CN investor and for SSI and its shareholders.
SSI gets US$20 mil to expand its business in Shanghai and it is believed, nationally and by time it is listed, it will be profitable according to the company. HKSE will give CEH a much higher premium than what ASX has given SSI to-date. Hence, the end result is, subject to the valuation of CEH by time of listing,SSI will own a majority of CEH, with CEH by then probably worth over US$1 bil. Don't forget BDO Corporate Finance valued CEH independently at between A$796 to $914 mil early this year just for its Shanghai business. Inclusive of any additional licences it will now be in a position to secure before listing, US$1 bil is not out of the question.
The most important aspect of this deal for SSI is that it now has the capital to support the business moving to profitability as well as any additional national licences and activities. Hence, by raising the funds in CEH but priced at a future price of CEH upon listing on HKSE some months later, SSI shareholders have avoided what will otherwise by a bigger dilution if the US$20 mil has been raised in SSI shares today. When the market understands the implications of this deal, that a major financial institution is prepared to back SSI even at these depressed times, by investing now to secure stocks in CEH at a future much improved company price, investors will start to see an undervalued opportunity they have missed so far while the CN investor has discovered this and backs the company with cold hard cash, then the SSI price will start to reflect a strong premium on the ASX.
This is what our Chairman said at the November 2007 AGM:
Since we already have over 2 years of trading track record and a large number of outlets established, we now qualify for a licence to franchise our operations throughout China. This is one option that would enable us to fast track our business model into other provinces and cities while minimizing capital requirements. This national franchise licence needs to be supported by a national gaming licence which, again because of our network size and trading history, we also are qualified to seek. The successful award of national licences would position us to distribute Welfare and Sports Lottery gaming products nationwide, over both the Internet and “bricks and mortar” platforms. This would have significant ramifications for how we grow the company moving forward and will add substantial enterprise value to our company.
With the addition of the new capital, CEH can now grow and secure these national licences which will add substantial enterprise value to SSI.
Richard Li" ...
Sincerely,
Warren B.
