China Angel Food may delist in SGX

Nov. 18, 2010 (China Knowledge) - China Angel Food Ltd, which principally operates food business in Guangdong Province, may delist from the Singapore Stock Exchange mainly due to extremely small transaction volume, sources reported.

According to the privatization offer launched by Fine Alley that holds a 49.82% stake or 159.59 million shares of China Angel Food, the latter firm is suggested to be delisted at an exit offer price of S$0.17 apiece, a price 13.33% higher than the closing price of S$0.15 on Nov.12.

In the past 12 months, China Angel Food's daily transaction volume accounted for only 0.05% to 0.07% of its total shares. Thus, Fine Alley hopes to delist the firm to avoid high listing cost.

Registered in British Virgin Islands, Fine Alley is partly owned by Liang Qiusheng who is also the chairman of China Angel Food.

In the third quarter of this year, China Angel Food booked S$4.8 million in net earnings, boosted by high sales, but the amount dropped 20% year on year.

At present, China Angel Food, which owns three well-recognized brands, namely Angel, QiWang and Yongtai, has a maximum annual output capacity of 7,200 metric tons of moon cakes, 3,786 metric tons of pastry products and 3,000 metric tons of cookies.

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The company may actually would looking for more money by raising IPO on other exchange in Asia or other part of the world.... greed is good?

Most of the Chinese company are like that....