Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Accelerating the Offer timetable for <a href="https://www.smartkarma.com/entities/nws-holdings-ltd" target="_blank" data-smartkarma-citation="entities:3350:1" rel="noopener">NWS (659 HK)</a> such that it closes before the dividend ex-date appeared stingy. But why pay dividends to shareholders that won’t hold the shares anymore?</li>
<li>Those concerns have been put to rest with the despatch of NWS' Composite Doc and <a href="https://www.smartkarma.com/entities/new-world-development" target="_blank" data-smartkarma-citation="entities:7037:1" rel="noopener">New World (17 HK)</a>'s Circular, guaranteeing all shareholders the dividend, no matter the Offer outcome.</li>
<li>The key risk now is NWD's independent shareholder vote. On balance, this should get up.</li>
</ul>


Accelerating the Offer timetable for NWS (659 HK) such that it closes before the dividend ex-date appeared stingy. But why pay dividends to shareholders that won’t hold the shares anymore?
Those concerns have been put to rest with the despatch of NWS' Composite Doc and New World (17 HK)'s Circular, guaranteeing all shareholders the dividend, no matter the Offer outcome.
The key risk now is NWD's independent shareholder vote. On balance, this should get up.


NWS (659 HK): Final Divvie Assured. NWD Vote Risk Remains

<ul>
<li>Back on the 26 June, Chow Tai Fook (CTFE) made a pre-conditional voluntary Offer for <a href="https://www.smartkarma.com/entities/new-world-development" target="_blank" data-smartkarma-citation="entities:7037:1" rel="noopener">New World (17 HK)</a>'s 60.88%-held <a href="https://www.smartkarma.com/entities/nws-holdings-ltd" target="_blank" data-smartkarma-citation="entities:3350:1" rel="noopener">NWS (659 HK)</a> at HK$9.15/share, a 22.2% premium to undisturbed.</li>
<li>The Cheng-family-backed CTFE and connected parties held 45.24% of NWD, therefore the parent was effectively injecting ~US$2.75bn of cash into NWD for its NWS stake.</li>
<li>The pre-cons are now done, with a 13 October despatch date for the Composite Document. Technically, this could be wrapped up before NWS' final dividend ex-date. That's worth exploring further.</li>
</ul>


Back on the 26 June, Chow Tai Fook (CTFE) made a pre-conditional voluntary Offer for New World (17 HK)'s 60.88%-held NWS (659 HK) at HK$9.15/share, a 22.2% premium to undisturbed.
The Cheng-family-backed CTFE and connected parties held 45.24% of NWD, therefore the parent was effectively injecting ~US$2.75bn of cash into NWD for its NWS stake.
The pre-cons are now done, with a 13 October despatch date for the Composite Document. Technically, this could be wrapped up before NWS' final dividend ex-date. That's worth exploring further.


NWS (659 HK): Pre-Cons Done. Now, About That Final Divvie ...

Equity Capital Markets

New World Development / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/new-world-development" target="_blank" data-smartkarma-citation="entities:7037:1" rel="noopener">New World Development (17 HK)</a> nudges an all-time low P/B and implied stub; as the privatisation of <a href="https://www.smartkarma.com/entities/nws-holdings-ltd" target="_blank" data-smartkarma-citation="entities:3350:1" rel="noopener">NWS Holdings (659 HK)</a> moves gradually forward. </li>
<li>Preceding my comments on NWD/NWS are the current setup/unwind tables for Asia-Pacific Holdcos</li>
<li>These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.</li>
</ul>



New World Development (17 HK) nudges an all-time low P/B and implied stub; as the privatisation of NWS Holdings (659 HK) moves gradually forward. 
Preceding my comments on NWD/NWS are the current setup/unwind tables for Asia-Pacific Holdcos
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.


StubWorld: NWD (17 HK) Is Cheap. It May Get Cheaper Still

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/golden-eagle-retail-group" target="_blank" data-smartkarma-citation="entities:470:1" rel="noopener">Golden Eagle Retail (3308 HK)</a>'s scheme document is out, with the court meeting scheduled for 15 September. The IFA considers the HK$6.88 per share offer fair and reasonable. </li>
<li>The key condition is approval by at least 75% of disinterested shareholders (&lt;10% of all disinterested shareholders rejection). The shareholder with a blocking stake has provided an irrevocable.</li>
<li>This is a done deal which help by the material derating of peers. At the current price of HK$6.75 and for the 17 October payment, the gross/annualised spread is 1.9%/13.4%.</li>
</ul>



Golden Eagle Retail (3308 HK)'s scheme document is out, with the court meeting scheduled for 15 September. The IFA considers the HK$6.88 per share offer fair and reasonable. 
The key condition is approval by at least 75% of disinterested shareholders (&lt;10% of all disinterested shareholders rejection). The shareholder with a blocking stake has provided an irrevocable.
This is a done deal which help by the material derating of peers. At the current price of HK$6.75 and for the 17 October payment, the gross/annualised spread is 1.9%/13.4%.


Golden Eagle Retail (3308 HK): Scheme Vote on 15 September

<ul>
<li>Chow Tai Fook (CTFE) has made a <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2023/0627/2023062700091.pdf" target="_blank" rel="noopener">voluntary cash Offer</a> for <a href="https://www.smartkarma.com/entities/new-world-development" target="_blank" data-smartkarma-citation="entities:7037:1" rel="noopener">New World Development (17 HK)</a>'s (NWD) 60.88%-held <a href="https://www.smartkarma.com/entities/nws-holdings-ltd" target="_blank" data-smartkarma-citation="entities:3350:1" rel="noopener">NWS Holdings (659 HK)</a> at HK$9.15/share, a 22.2% premium to undisturbed. </li>
<li>CTFE and connected parties hold 45.24% of NWD, therefore the parent is effectively injecting ~US$2.75bn of cash into NWD for its NWS stake.</li>
<li>The Offer is subject to regulatory approvals in Hong Kong and Bermuda. These will not be an issue given CTFE is NWD's ultimate shareholder. </li>
</ul>


Chow Tai Fook (CTFE) has made a voluntary cash Offer for New World Development (17 HK)'s (NWD) 60.88%-held NWS Holdings (659 HK) at HK$9.15/share, a 22.2% premium to undisturbed. 
CTFE and connected parties hold 45.24% of NWD, therefore the parent is effectively injecting ~US$2.75bn of cash into NWD for its NWS stake.
The Offer is subject to regulatory approvals in Hong Kong and Bermuda. These will not be an issue given CTFE is NWD's ultimate shareholder. 


Chow Tai Fooks' Offer For NWS (659 HK). Buy NWD (17 HK)

Hong Kong

New World Department Store China is an investment holding company that owns and operates department stores and shopping malls in the People's Republic of China. The company operates under the "New World" and "Ba Li Chun Tian" brand names, offering a wide range of merchandise, catering, entertainment, and an online shopping platform "New Lab". It was founded in 1993 and is headquartered in Cheung Sha Wan, Hong Kong.

New World Department Store China (825 HK)

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New World Department Store China (825 HK)

NWS (659 HK): Final Divvie Assured. NWD Vote Risk Remains

The NWD vote risk is non-negligible when looking at minority action at past AGM/EGM voting. This is trading at a gross spread of 4.3% inclusive of...

David Blennerhassett

NWS (659 HK): Pre-Cons Done. Now, About That Final Divvie ...

Accelerating the timetable such that it closes before the final ex-date would smack of a new low in stinginess. I don't see it. This is trading at...

David Blennerhassett

StubWorld: NWD (17 HK) Is Cheap. It May Get Cheaper Still

If the Chengs aren't buying here, it doesn't exactly compel investors to do otherwise. The arb for NWS Holdings looks like a better bet here after...

David Blennerhassett

Golden Eagle Retail (3308 HK): Scheme Vote on 15 September

The scheme was overwhelmingly approved. Minority turnout was good with 68.2% of disinterested shares casting a vote. The scheme was approved by...

Arun George

Chow Tai Fooks' Offer For NWS (659 HK). Buy NWD (17 HK)

Assuming the final divi of HK$0.31/share is added on top of the offer price; and payment around 7 months out, I'd be buying up to $8.95 or so (10%...

David Blennerhassett

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