CAO ( Report from Kim Eng)

CAO will resume trading tomorrow. More than 529mil news shares will be issued, most of which will go to China Aviation Holding (CAOHC), BP and Temasek’s unit Aranda. CAOHC’s stake will be 50.88%, BP 20% and Aranda 4.65%. Creditors will hold 10% of the newly restructured firm while minority shareholders will own 14.47%. Under the restructuring, an investor who owned 1,000 share previously will end up with 270 shares. An unofficial gauge for the opening price tomorrow is $0.515, which is the value of CAOHC, BP and Temasek’s investment.