Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

After shares were <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0922/2020092200236.pdf" target="_blank" rel="noopener">halted</a> lunchtime on the 22 September pursuant to the Hong Kong Code on Takeovers and Mergers, <a href="https://www.smartkarma.com/entities/amvig-holdings-ltd" target="_blank" data-smartkarma-citation="entities:4467:1" rel="noopener">Amvig Holdings (2300 HK)</a> last night announced a possible conditional Offer.
<a href="https://www.smartkarma.com/entities/amcor-limited" target="_blank" data-smartkarma-citation="entities:674:1" rel="noopener">Amcor Limited (AMC AU)</a>, AMVIG's largest shareholder with 47.63% of shares out, has entered into a SPA with Golden Vison Buyout Fund (GVB). Upon the completion of the SPA, GVB would be obligated to make a mandatory, conditional Offer for all remaining shares.
That Offer Price will be HK$2.18/share, a 51.39% premium to last close.
The SPA has limited conditionality and a long stop date of the 30 September 2020.
The MGO is conditional on 50% acceptance.
This looks done - expect shares to trade tight to terms. The only question is whether sufficient tendering will result in shares being delisted.
As always, more below the fold.

After shares were halted lunchtime on the 22 September pursuant to the Hong Kong Code on Takeovers and Mergers, Amvig Holdings (2300 HK) last night announced a possible conditional Offer.
Amcor Limited (AMC AU), AMVIG's largest shareholder with 47.63% of shares out, has entered into a SPA with Golden Vison Buyout Fund (GVB). Upon the completion of the SPA, GVB would be obligated to make a mandatory, conditional Offer for all remaining shares.
That Offer Price will be HK$2.18/share, a 51.39% premium to last close.
The SPA has limited conditionality and a long stop date of the 30 September 2020.
The MGO is conditional on 50% acceptance.
This looks done - expect shares to trade tight to terms. The only question is whether sufficient tendering will result in shares being delisted.
As always, more below the fold.

AMVIG (2300 HK): Smoker's Delight - Possible Conditional Offer

Champion Alliance International Holdings Limited / Event-Driven

Champion Alliance International Holdings Limited

On 2 August, cigarette-packing manufacturer <a href="https://www.smartkarma.com/entities/27334" target="_blank" data-smartkarma-citation="entities:27334:1">Mengke Holdings Ltd (1629 HK)</a> announced that Happily Soar (a 56.25%-shareholder) and Liberal Rite (18.75%) - collectively holding 75% - <a href="http://www3.hkexnews.hk/listedco/listconews/SEHK/2018/0802/LTN20180802589.pdf" target="_blank">entered into a supplemental memorandum of understanding</a> with Champion Alliance (Offeror)/Million Success to sell their respective stakes.
SPAs were entered into on the 19 October and were <a href="http://www3.hkexnews.hk/listedco/listconews/SEHK/2018/1029/LTN201810291061.pdf" target="_blank">completed</a> on the 22 October. Immediately upon the completion, the Offeror/Million Success was obligated to make an unconditional mandatory offer under Rule 26.1 of the Takeovers Code. The Offer price is HK$1.42/share, cash, a 9.23% premium to last close. 
The Offer is unconditional in all respects. Any dividends declared or paid after the announcement will reduce the Offer price. The Offeror intends to maintain Mengke's listing.  
Optically, the offer price appears opportunistic, having recently recovered from an 18-month low. Yet, $1.42 backs out blue-sky metrics of 51x EV/EBITDA and 135x PER. 
The major shareholder and chairman is stubbing out. I would be inclined to follow.

On 2 August, cigarette-packing manufacturer Mengke Holdings Ltd (1629 HK) announced that Happily Soar (a 56.25%-shareholder) and Liberal Rite (18.75%) - collectively holding 75% - entered into a supplemental memorandum of understanding with Champion Alliance (Offeror)/Million Success to sell their respective stakes.
SPAs were entered into on the 19 October and were completed on the 22 October. Immediately upon the completion, the Offeror/Million Success was obligated to make an unconditional mandatory offer under Rule 26.1 of the Takeovers Code. The Offer price is HK$1.42/share, cash, a 9.23% premium to last close. 
The Offer is unconditional in all respects. Any dividends declared or paid after the announcement will reduce the Offer price. The Offeror intends to maintain Mengke's listing.  
Optically, the offer price appears opportunistic, having recently recovered from an 18-month low. Yet, $1.42 backs out blue-sky metrics of 51x EV/EBITDA and 135x PER. 
The major shareholder and chairman is stubbing out. I would be inclined to follow.

Running Out of Puff? Tender Into Mengke's Offer

Hong Kong

AMVIG Holdings Ltd, through its subsidiaries, prints cigarette packages and manufactures laminated papers for cigarette packages in China.

AMVIG Holdings (2300 HK)

AMVIG (2300 HK): Smoker's Delight - Possible Conditional Offer

After shres were halted on the

David Blennerhassett

Running Out of Puff? Tender Into Mengke's Offer

On 2 August, cigarette-packing manufacturer Mengke Holdings Ltd (1629 HK) announced that Happily Soar (a 56.25%-shareholder) and Liberal Rite...

David Blennerhassett