Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Construction subcontractor <a href="https://www.smartkarma.com/entities/lotus-horizon-holdings-limited" target="_blank" data-smartkarma-citation="entities:49193:1" rel="noopener">Lotus Horizon (6063 HK)</a> is <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2026/0903/2026090300013.pdf" target="_blank" rel="noopener">suspended</a> pursuant to the Hong Kong Code on Takeovers and Mergers.</li>
<li>I expect Lotus will follow in <a href="https://www.smartkarma.com/entities/wk-group-holdings-limited" target="_blank" data-smartkarma-citation="entities:49355:1" rel="noopener">WK Group (2535 HK)</a> and <a href="https://www.smartkarma.com/entities/superland-group-holdings-limited" target="_blank" data-smartkarma-citation="entities:55388:1" rel="noopener">Superland Group Holdings (368 HK)</a>'s footsteps, whereby the controlling family exits, triggering an unconditional takeunder. </li>
<li>Loss-Making Lotus is a total bubble stock, up 457% since Feb , 750%+ in 12 months, and trading at 20x P/B. Are shell companies and reverse takeovers making a comeback?
</li>
</ul>


Construction subcontractor Lotus Horizon (6063 HK) is suspended pursuant to the Hong Kong Code on Takeovers and Mergers.
I expect Lotus will follow in WK Group (2535 HK) and Superland Group Holdings (368 HK)'s footsteps, whereby the controlling family exits, triggering an unconditional takeunder. 
Loss-Making Lotus is a total bubble stock, up 457% since Feb , 750%+ in 12 months, and trading at 20x P/B. Are shell companies and reverse takeovers making a comeback?



Lotus (6063 HK) Is A Bubble Stock. Expect An Unconditional Takeunder

<ul>
<li>I tally 29 - mostly firm, mostly Asia-Pac - arb transactions currently being discussed and analysed on Smartkarma. Those arbs metrics and upcoming events are detailed below.</li>
<li>Three new deals were was discussed on Smartkarma this week: <a href="https://www.smartkarma.com/entities/sk-signet-inc" target="_blank" data-smartkarma-citation="entities:55377:1" rel="noopener">SK Signet (260870 KS)</a>, <a href="https://www.smartkarma.com/entities/energy-one-ltd" target="_blank" data-smartkarma-citation="entities:19865:1" rel="noopener">Energy One (EOL AU)</a>, and <a href="https://www.smartkarma.com/entities/ns-united-kaiun-kaisha-ltd" target="_blank" data-smartkarma-citation="entities:17238:1" rel="noopener">Ns United Kaiun Kaisha (9110 JP)</a>. </li>
<li>Key updates/news also took place on: <a href="https://www.smartkarma.com/entities/perpetual-ltd" target="_blank" data-smartkarma-citation="entities:599:1" rel="noopener">Perpetual Ltd (PPT AU)</a>, <a href="https://www.smartkarma.com/entities/zenith-minerals-ltd" target="_blank" data-smartkarma-citation="entities:3234:1" rel="noopener">Zenith Minerals (ZNC AU)</a>, <a href="https://www.smartkarma.com/entities/australian-strategic-materials" target="_blank" data-smartkarma-citation="entities:30815:1" rel="noopener">Australian Strategic Materials (ASM AU)</a>, <a href="https://www.smartkarma.com/entities/pepper-money-ltd-australia" target="_blank" data-smartkarma-citation="entities:24157:1" rel="noopener">Pepper Money (PPM AU)</a>, and <a href="https://www.smartkarma.com/entities/yamada-corp" target="_blank" data-smartkarma-citation="entities:16273:1" rel="noopener">Yamada Corp (6392 JP)</a><a href="https://www.smartkarma.com/entities/yamada-corp" target="_blank" data-smartkarma-citation="entities:16273:1" rel="noopener"></a>.</li>
</ul>


I tally 29 - mostly firm, mostly Asia-Pac - arb transactions currently being discussed and analysed on Smartkarma. Those arbs metrics and upcoming events are detailed below.
Three new deals were was discussed on Smartkarma this week: SK Signet (260870 KS), Energy One (EOL AU), and Ns United Kaiun Kaisha (9110 JP). 
Key updates/news also took place on: Perpetual Ltd (PPT AU), Zenith Minerals (ZNC AU), Australian Strategic Materials (ASM AU), Pepper Money (PPM AU), and Yamada Corp (6392 JP).


Asia-Pac Weekly Wrap: Perpetual, SK Signet, Energy One, Superland, WK Group, Ns United Kaiun, Yamada

<ul>
<li>Bain+LY have come over the top of EQT+DG for <a href="https://www.smartkarma.com/entities/kakaku-com-inc" target="_blank" data-smartkarma-citation="entities:7408:1" rel="noopener">Kakaku.com (2371 JP)</a>. We may get another 5% out of this, but we're closer to the end than the beginning.</li>
<li>
<a href="https://www.smartkarma.com/entities/commonwealth-bank-of-australia" target="_blank" data-smartkarma-citation="entities:14:1" rel="noopener">Commonwealth Bank of Australia (CBA AU)</a> has knock <a href="https://www.smartkarma.com/entities/rio-tinto-ltd" target="_blank" data-smartkarma-citation="entities:13:1" rel="noopener">Rio Tinto Ltd (RIO AU)</a> off its perch as the most shorted Aussie stock by $ value.</li>
<li>Murakami Group has, indeed, increased its stake in <a href="https://www.smartkarma.com/entities/yamada-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:641:1" rel="noopener">Yamada Holdings (9831 JP)</a>. They are now at 6.26%. They are not in it because Yamada is fairly-priced vs <a href="https://www.smartkarma.com/entities/edion-corp" target="_blank" data-smartkarma-citation="entities:14358:1" rel="noopener">Edion (2730 JP)</a>.</li>
</ul>


Bain+LY have come over the top of EQT+DG for Kakaku.com (2371 JP). We may get another 5% out of this, but we're closer to the end than the beginning.

Commonwealth Bank of Australia (CBA AU) has knock Rio Tinto Ltd (RIO AU) off its perch as the most shorted Aussie stock by $ value.
Murakami Group has, indeed, increased its stake in Yamada Holdings (9831 JP). They are now at 6.26%. They are not in it because Yamada is fairly-priced vs Edion (2730 JP).


Last Week In Event SPACE: Kakaku.com, Aussie Banks, Yamada, Muyuan Foods, IAG/Suncorp

<ul>
<li>Contractor <a href="https://www.smartkarma.com/entities/wk-group-holdings-limited" target="_blank" data-smartkarma-citation="entities:49355:1" rel="noopener">WK Group (2535 HK)</a> is suspended pursuant to the Hong Kong Code on Takeovers and Mergers. Expect a Scheme Offer from the Chan family, who collectively hold ~39%.</li>
<li>WK Group was listed in March 2024 at HK$0.25/share, and closed up 9.7% yesterday at HK$0.51/share.</li>
<li>Interestingly, this is the second HK contractor suspended in as many days due to the Takeovers code, after <a href="https://www.smartkarma.com/entities/superland-group-holdings-limited" target="_blank" data-smartkarma-citation="entities:55388:1" rel="noopener">Superland (368 HK)</a> - see <a href="https://www.smartkarma.com/insights/superland-368-hk-suspended-mbo-takeunder-expected" target="_blank" data-smartkarma-citation="insights:248288" rel="noopener">Superland (368 HK) Suspended: MBO (Takeunder) Expected</a>.</li>
</ul>


Contractor WK Group (2535 HK) is suspended pursuant to the Hong Kong Code on Takeovers and Mergers. Expect a Scheme Offer from the Chan family, who collectively hold ~39%.
WK Group was listed in March 2024 at HK$0.25/share, and closed up 9.7% yesterday at HK$0.51/share.
Interestingly, this is the second HK contractor suspended in as many days due to the Takeovers code, after Superland (368 HK) - see Superland (368 HK) Suspended: MBO (Takeunder) Expected.


WK Group (2535 HK): Second Contractor Suspended Pursuant To Takeovers Code

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sinotrans-shipping-limited" target="_blank" data-smartkarma-citation="entities:17529:1" rel="noopener">Superland Group (368 HK)</a> is suspended pursuant to Hong Kong Code on Takeovers and Mergers. I expect a Scheme Offer from founder/chairman/CEO Ng Chi Chiu, who currently holds 75%.</li>
<li>Superland, a high-end indoor home and commercial decorator/renovator, was listed in July 2020 at HK$0.63/share.</li>
<li>The stock is up &gt;600% in the past year. Yet remarkably, is 50% adrift off its all-time high last month. Expect a takeunder. Currently trading with total disregard to fundamentals.</li>
</ul>



Superland Group (368 HK) is suspended pursuant to Hong Kong Code on Takeovers and Mergers. I expect a Scheme Offer from founder/chairman/CEO Ng Chi Chiu, who currently holds 75%.
Superland, a high-end indoor home and commercial decorator/renovator, was listed in July 2020 at HK$0.63/share.
The stock is up &gt;600% in the past year. Yet remarkably, is 50% adrift off its all-time high last month. Expect a takeunder. Currently trading with total disregard to fundamentals.


Superland (368 HK) Suspended: MBO (Takeunder) Expected

Hong Kong

Sinotrans Shipping Limited is a major Chinese shipping company that owns, manages, and operates dry bulk and container fleets globally. The company provides vessel time and voyage chartering, freight and container forwarding, container line services, shipping agency, fleet management, and liquefied natural gas shipping. It was founded in 2003 and is headquartered in Hong Kong.

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Sinotrans Shipping (SINOTRANS HK)

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Expect a takeunder. Loss-making Lotus is a total bubble stock, up 457% since Feb , 750%+ in 12 months, and trading at 20x P/B. Are shell comapanies...

David Blennerhassett

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This insight provides a summary of gross/annualised spreads (on deals discussed on Smartkarma) across Asia-Pacific as at the last trading date, and...

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Last Week In Event SPACE: Kakaku.com, Aussie Banks, Yamada, Muyuan Foods, IAG/Suncorp

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WK Group (2535 HK): Second Contractor Suspended Pursuant To Takeovers Code

WK Group (2535 HK) is the second HK contractor suspended in as many days due to the Takeovers code, after Superland (368 HK).

David Blennerhassett

Superland (368 HK) Suspended: MBO (Takeunder) Expected

The stock is up >600% in the past year. Yet remarkably, is 50% adrift off its all-time high last month. Expect a takeunder. Currently trading with...

David Blennerhassett

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