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1.Summary beginning situated (Holdings) Limited (the run Set, corporation) is principally engaged in piece goods-dyeing and fabric-finishing services and was the valet de chambres largest cotton-knitted fabric manufacturer in 2002. Investors in Hong Kong shows miss of interest in equity market and may in any case has a negative view on the matured manufacturing company. The drive of this report is to express an investing bankers suasion regarding super C Set privatization exercise. As a summary: ?Fountain Set should persuade for privatization ?Privatisation motive should be the owners future of the company ?The success of privatisation depends on both the pricing and familial of good timing ?Privatisation Price around $1.38- 2.38; Pricing approach- BV PE and DCF 2.Privatisation Motives In January 2002, Fountain Set was held by Mr Ha Chung Fong (40.3%), Value Partner (13.1%) and the ordinary (46.6%). Mr Ha is the Chairman and the Founder of the political party, who would like to pass the participation to the next generation when the price is right. Value Partner as a passive investment would agree on the privatisation if and exclusively if the price is right. Mr Ha believes Fountain Set should be privatising as the Company has not raised any funds in market and the valuation does not reflect its true value.

However, Fountain Set may need capital for the expansion in China market. Also, it may because the low debt costs environment. In station to solve the under-pricing issue, Fountain Set could do more investment relationship. The real reason may be the whole fabrication under value. The appropriate motive shall be the prospect of the Company which will also affect the privatization pricing mythology as summarised downstairs: PrivatePass to next generationDCF, PB exchange as part or whole (eg Land)NBV, MV universeNo changeDiv yield Sell downPE, RV Change listing venue in ChinaPE, RV, PB Separate for China business Mr Ha always has the opinion to... If you want to get a full essay, order it on our website: Ordercustompaper.com

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