Sep. 2 at 5:40 PM
$CAAS Special meeting on Sept. 10th to redomicile merger into a Cayman subsidiary. Given they have been listed in the USA for decades and always a completely clean record I have few concerns on the move and less filings. They quote savings on operational, administrative, legal and accounting costs plus some potential small tax savings for reasons on the move. Based on other similar size companies I have followed that have moved from US to Cayman I would expect ~
$1 million per year in net since they are still filing. The real reason for the move is Cayman Islands is it will make a buyout or take-private easier for several reasons. Cayman corporate law provides flexible mechanisms such as statutory mergers and tender offers, all of which are commonly used in privatisations. The jurisdiction is also a preferred hub for M&A because its legal framework is both predictable and flexible. It see something big occurring in the next year or less as a result. Plus - another big dividend.
