Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

M-Universe Investments, a vehicle led by the Chuang Family/Keytech which hold 57.7% in <a href="https://www.smartkarma.com/entities/7873" target="_blank" data-smartkarma-citation="entities:7873:1">Memtech International (MTEC SP)</a>, have <a href="https://links.sgx.com/FileOpen/Memtech-Cash%20Offer.ashx?App=Announcement&amp;FileID=559619" target="_blank">announced</a> a voluntary conditional offer for the precision components manufacturer at $1.35/share cash - a 23.9% premium to last close and a 31.5% premium to the one-month VWAP.
The Offer price is Final.
M-Universe, the Offeror, comprises the Chuang  Family, Keytech Investments (owned by the Chuang Family and management team) and Universal Global Tech (UGT), a wholly-owned subsidiary of <a href="https://www.smartkarma.com/entities/7720" target="_blank" data-smartkarma-citation="entities:7720:1">Universal Scientific Industrial (Shanghai) (601231 CH)</a>.
The Offer is conditional on 90% acceptance - including the Offeror's and concert parties' shares - with the Offeror reserving the right to reduce this to 50%. 
Trade tensions and challenging global markets have negatively impacted Memtech's financials. <a href="https://links.sgx.com/FileOpen/Memtech%20FY2018%20-%20Press%20Release.ashx?App=Announcement&amp;FileID=545290" target="_blank">FY18 earnings</a> declined by 32% yoy to US$9.6mn, against a 13.2% increase in revenue to US$19.2mn. The margin squeeze was due to a host of issues including higher raw material prices, product packaging costs, and labour costs, together with higher depreciation costs related to new equipment, and reduced manufacturing yields. <a href="https://links.sgx.com/FileOpen/Memtech%201Q2019%20-%20Press%20Release.ashx?App=Announcement&amp;FileID=555913" target="_blank">1Q19's bottom line</a> declined by 15.6%.
Shares are trading tight at a gross spread of ~1%.  Pricing under the Offer appears fair with respect to peers and precedent transaction. I recommend shareholders tender into the Offer.
<hr>
The <a href="https://www.smartkarma.com/insights/quiddity-singapore-m-a-guide-2019" target="_blank">Quiddity Singapore M&amp;A Guide 2019</a> is now published with guidelines to the relevant rules, regulations, documentation, and pointers to the Singapore M&amp;A landscape. Others in the series to date are <a href="https://www.smartkarma.com/insights/quiddity-hong-kong-m-a-guide-2019" target="_blank">Hong Kong</a>, <a href="https://www.smartkarma.com/insights/quiddity-japan-m-a-guide-2019" target="_blank">Japan</a>, and <a href="https://www.smartkarma.com/insights/quiddity-thailand-m-a-guide-2019" target="_blank">Thailand</a>. Watch for more soon.

M-Universe Investments, a vehicle led by the Chuang Family/Keytech which hold 57.7% in Memtech International (MTEC SP), have announced a voluntary conditional offer for the precision components manufacturer at $1.35/share cash - a 23.9% premium to last close and a 31.5% premium to the one-month VWAP.
The Offer price is Final.
M-Universe, the Offeror, comprises the Chuang  Family, Keytech Investments (owned by the Chuang Family and management team) and Universal Global Tech (UGT), a wholly-owned subsidiary of Universal Scientific Industrial (Shanghai) (601231 CH).
The Offer is conditional on 90% acceptance - including the Offeror's and concert parties' shares - with the Offeror reserving the right to reduce this to 50%. 
Trade tensions and challenging global markets have negatively impacted Memtech's financials. FY18 earnings declined by 32% yoy to US$9.6mn, against a 13.2% increase in revenue to US$19.2mn. The margin squeeze was due to a host of issues including higher raw material prices, product packaging costs, and labour costs, together with higher depreciation costs related to new equipment, and reduced manufacturing yields. 1Q19's bottom line declined by 15.6%.
Shares are trading tight at a gross spread of ~1%.  Pricing under the Offer appears fair with respect to peers and precedent transaction. I recommend shareholders tender into the Offer.

The Quiddity Singapore M&amp;A Guide 2019 is now published with guidelines to the relevant rules, regulations, documentation, and pointers to the Singapore M&amp;A landscape. Others in the series to date are Hong Kong, Japan, and Thailand. Watch for more soon.

Singapore

Spindex Industries Limited manufactures, imports, exports, and deals mechanical, electrical, and electronic parts.  The Company also manufactures and trades precision machine parts, plastic molds and injections, and other related plastic and engineering materials.

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Spindex Industries (SPE SP)

Memtech's Precision Exit

M-Universe Investments, a vehicle led by the Chuang Family/Keytech which hold 57.7% in Memtech International (MTEC SP), have announced a voluntary...

David Blennerhassett

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