Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>The data in this insight is collated from the "shareholding disclosure" link on the HKEx website.</li>
<li>Often there is a corresponding HKEx announcement on the increase - or decrease - in the shareholding by directors. However, such disclosures are by no means an absolute.</li>
<li>These insights may flag those companies where shares have been pledged. Stocks mentioned include <strong><a href="https://www.smartkarma.com/entities/apac-resources-ltd" target="_blank" data-smartkarma-citation="entities:7644:1" rel="noopener">Apac Resources (1104 HK)</a></strong>, <strong><a href="https://www.smartkarma.com/entities/ausnutria-dairy-corp-ltd" target="_blank" data-smartkarma-citation="entities:13799:1" rel="noopener">Ausnutria (1717 HK)</a></strong>, <strong><a href="https://www.smartkarma.com/entities/pharmaron-beijing-co-ltd" target="_blank" data-smartkarma-citation="entities:28428:1" rel="noopener">Pharmaron Beijing (3759 HK)</a></strong>, and <strong><a href="https://www.smartkarma.com/entities/joinn-laboratories-china-c-h" target="_blank" data-smartkarma-citation="entities:31498:1" rel="noopener">Joinn Laboratories (6127 HK)</a></strong>.</li>
</ul>


The data in this insight is collated from the "shareholding disclosure" link on the HKEx website.
Often there is a corresponding HKEx announcement on the increase - or decrease - in the shareholding by directors. However, such disclosures are by no means an absolute.
These insights may flag those companies where shares have been pledged. Stocks mentioned include Apac Resources (1104 HK), Ausnutria (1717 HK), Pharmaron Beijing (3759 HK), and Joinn Laboratories (6127 HK).


Hong Kong CEO & Director Dealings (1 Jan): APAC Resources, Ausnutria, Pharmaron, Joinn Laboratories

<div>
<p>Briefly: on the 20 April, <a href="https://www.smartkarma.com/entities/allied-group-ltd" target="_blank" data-smartkarma-citation="entities:4387:1" rel="noopener">Allied Group Limited (373 HK)</a> (AGL) made an <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0420/2020042001582.pdf" target="_blank" rel="noopener">Offer</a> for 75%-held <a href="https://www.smartkarma.com/entities/allied-properties-hk-ltd" target="_blank" data-smartkarma-citation="entities:19953:1" rel="noopener">Allied Properties Hk (56 HK)</a> (APH), by way of a Scheme, at $1.92/share (cash), a 34.2% premium to last close.  The Scheme Doc was despatched on the <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0618/2020061800579.pdf" target="_blank" rel="noopener">19 June</a>. The IFA opined the Offer was fair &amp; reasonable. Shareholders approved the Scheme on the 15 July. Then followed a bizarre delay wherein the judge <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/1005/2020100502577.pdf" target="_blank" rel="noopener">refused to sanction</a> the Scheme, culminating in the Court of Appeals <a href="https://legalref.judiciary.hk/lrs/common/ju/ju_frame.jsp?DIS=132143&amp;currpage=T" target="_blank" rel="noopener">settling the matter</a>, and the Scheme became <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/1124/2020112400688.pdf" target="_blank" rel="noopener">effective</a> on the 25 November. </p>
<p>This deal was extensively discussed on Smartkarma, beginning with <em><a href="https://skr.ma/p9urr" target="_blank" rel="noopener">Allied Prop (56 HK): Cash Offer From Parent</a></em>.</p>
</div>
<div>
<h3>The New News</h3>
<p>AGL has now made an <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/1218/2020121801069.pdf" target="_blank" rel="noopener">Offer</a> for 75%-held <a href="https://www.smartkarma.com/entities/shk-hong-kong-industries-ltd" target="_blank" data-smartkarma-citation="entities:2399:1" rel="noopener">Shk Hong Kong Industries (666 HK)</a>, by way of a Scheme, at $0.21/share (cash), a 50.00% premium to last close.  The Offer price is final. SHK is HK-incorporated, therefore there is no headcount test.</p>
<p>Should the Scheme complete - and I see no specific hurdle why it will not - AGL would have privatised its two key holdings, and at 0.4x P/B, may well be the next take-private target. </p>
<p>More below the fold.</p>
</div>


Briefly: on the 20 April, Allied Group Limited (373 HK) (AGL) made an Offer for 75%-held Allied Properties Hk (56 HK) (APH), by way of a Scheme, at $1.92/share (cash), a 34.2% premium to last close.  The Scheme Doc was despatched on the 19 June. The IFA opined the Offer was fair &amp; reasonable. Shareholders approved the Scheme on the 15 July. Then followed a bizarre delay wherein the judge refused to sanction the Scheme, culminating in the Court of Appeals settling the matter, and the Scheme became effective on the 25 November. 
This deal was extensively discussed on Smartkarma, beginning with Allied Prop (56 HK): Cash Offer From Parent.


The New News
AGL has now made an Offer for 75%-held Shk Hong Kong Industries (666 HK), by way of a Scheme, at $0.21/share (cash), a 50.00% premium to last close.  The Offer price is final. SHK is HK-incorporated, therefore there is no headcount test.
Should the Scheme complete - and I see no specific hurdle why it will not - AGL would have privatised its two key holdings, and at 0.4x P/B, may well be the next take-private target. 
More below the fold.


SHK (666 HK): Allied Group Further Cleans House With Scheme Offer

<div>
<p>To recap: on the 20 April, <a href="https://www.smartkarma.com/entities/allied-group-ltd" target="_blank" data-smartkarma-citation="entities:4387:1" rel="noopener">Allied Group Limited (373 HK)</a> (AGL) made an <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0420/2020042001582.pdf" target="_blank" rel="noopener">Offer</a> for 75%-held <a href="https://www.smartkarma.com/entities/allied-properties-hk-ltd" target="_blank" data-smartkarma-citation="entities:19953:1" rel="noopener">Allied Properties Hk (56 HK)</a> (APH), by way of a Scheme, at $1.92/share (cash), a 34.2% premium to last close. The Offer consideration was Final, and would be split between a $0.42/share Scheme Consideration and a $1.50 Scheme Dividend.  </p>
</div>
<div>
<p>The Scheme Doc was despatched on the <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0618/2020061800579.pdf" target="_blank" rel="noopener">19 June</a>. The IFA has opined the Offer was fair &amp; reasonable. The Court Meeting was set for the 15 July. </p>
<p>Yesterday,  the resolution to approve the Scheme was <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0715/2020071500859.pdf" target="_blank" rel="noopener">approved</a> by the holders of Scheme Shares at the Court Meeting. Shares will continue to trade until the 14 August (inclusive). Cheques will be despatched on or before the 8 Sept.</p>
<p>With APH fully taken into the fold, is the privatisation of AGL next for the Lee family?</p>
</div>
<div>
<p>As always, more below the fold.</p>
</div>


To recap: on the 20 April, Allied Group Limited (373 HK) (AGL) made an Offer for 75%-held Allied Properties Hk (56 HK) (APH), by way of a Scheme, at $1.92/share (cash), a 34.2% premium to last close. The Offer consideration was Final, and would be split between a $0.42/share Scheme Consideration and a $1.50 Scheme Dividend.  


The Scheme Doc was despatched on the 19 June. The IFA has opined the Offer was fair &amp; reasonable. The Court Meeting was set for the 15 July. 
Yesterday,  the resolution to approve the Scheme was approved by the holders of Scheme Shares at the Court Meeting. Shares will continue to trade until the 14 August (inclusive). Cheques will be despatched on or before the 8 Sept.
With APH fully taken into the fold, is the privatisation of AGL next for the Lee family?


As always, more below the fold.


Allied Prop (56 HK): Scheme Done. AGL Next?

<p>Coking coal miner and producer <a href="https://www.smartkarma.com/entities/shougang-fushan-resources-group-ltd" target="_blank" data-smartkarma-citation="entities:19494:1" rel="noopener">Shougang Fushan Resources (639 HK)</a> (SFR) is currently <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0714/2020071400319.pdf" target="_blank" rel="noopener">suspended</a> pursuant to the <em>Rules Governing the Listing of Securities on the Stock Exchange and the Codes on Takeovers and Mergers and Share Buybacks</em> of Hong Kong. </p>
<p>Shares popped 15.09% yesterday on the highest volume in two years, evidently on some news leakage. </p>
<p>SFR is 29.85% held by SOE-Shougang Group and 29.04% by Funde Sino Life. As a HK-incorporated company, no headcount test is required in a privatisation Offer by way of Scheme.</p>
<p>This insight provides a brief overview of SFR's operations, and what may be considered a fair value for the company in a takeover situation.</p>

Coking coal miner and producer Shougang Fushan Resources (639 HK) (SFR) is currently suspended pursuant to the Rules Governing the Listing of Securities on the Stock Exchange and the Codes on Takeovers and Mergers and Share Buybacks of Hong Kong. 
Shares popped 15.09% yesterday on the highest volume in two years, evidently on some news leakage. 
SFR is 29.85% held by SOE-Shougang Group and 29.04% by Funde Sino Life. As a HK-incorporated company, no headcount test is required in a privatisation Offer by way of Scheme.
This insight provides a brief overview of SFR's operations, and what may be considered a fair value for the company in a takeover situation.

<div>
<p>Back on the 20 April, <a href="https://www.smartkarma.com/entities/allied-group-ltd" target="_blank" data-smartkarma-citation="entities:4387:1" rel="noopener">Allied Group Limited (373 HK)</a> (AGL) made an <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0420/2020042001582.pdf" target="_blank" rel="noopener">Offer</a> for <a href="https://www.smartkarma.com/entities/allied-properties-hk-ltd" target="_blank" data-smartkarma-citation="entities:19953:1" rel="noopener">Allied Properties Hk (56 HK)</a> (APH), by way of a Scheme, at $1.92/share (cash), a 34.2% premium to last close. The Offer consideration was Final, and would be split between a $0.42/share Scheme Consideration and a $1.50 Scheme Dividend.  An interim dividend of HK$0.08/share  for the year ended 31st December, 2019, payable on or around 20th May, was also added, to bring the total payout to $2/share.</p>
</div>
<div>
<p>The initial announcement guided completion around October, suggesting the Scheme Document would be dispatched late August. Then APH  <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0511/2020051100918.pdf" target="_blank" rel="noopener">announced</a> that the date of despatch of the Scheme Document to be no later than 30 June.</p>
</div>
<div>
<p>The Scheme Doc is now <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0618/2020061800579.pdf" target="_blank" rel="noopener">out</a>, with the Court Meeting set for the 15 July, an indicative effective date of the 28 August, and payment on the 8 September. The IFA has opined the Offer is fair &amp; reasonable.</p>
</div>
<div>
<p>As always, more below the fold.</p>
</div>


Back on the 20 April, Allied Group Limited (373 HK) (AGL) made an Offer for Allied Properties Hk (56 HK) (APH), by way of a Scheme, at $1.92/share (cash), a 34.2% premium to last close. The Offer consideration was Final, and would be split between a $0.42/share Scheme Consideration and a $1.50 Scheme Dividend.  An interim dividend of HK$0.08/share  for the year ended 31st December, 2019, payable on or around 20th May, was also added, to bring the total payout to $2/share.


The initial announcement guided completion around October, suggesting the Scheme Document would be dispatched late August. Then APH  announced that the date of despatch of the Scheme Document to be no later than 30 June.


The Scheme Doc is now out, with the Court Meeting set for the 15 July, an indicative effective date of the 28 August, and payment on the 8 September. The IFA has opined the Offer is fair &amp; reasonable.


As always, more below the fold.


Allied Props (56 HK)'s Scheme Document Despatched

Hong Kong

APAC Resources Limited is an investment holding company. The Company is principally involved in investments in global resources companies and commodity trading. APAC has offices in Hong Kong and Shanghai.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

APAC Resources (1104 HK)

Hong Kong CEO & Director Dealings (1 Jan): APAC Resources, Ausnutria, Pharmaron, Joinn Laboratories

The data in this insight is collated from the "shareholding disclosure" link on the HKEx website. These insights also flag those companies where...

David Blennerhassett

SHK (666 HK): Allied Group Further Cleans House With Scheme Offer

It's an attractive spread to terms here, but not a particularly liquid arb situation. I like AGL as it further simplifies its holdings. I think...

David Blennerhassett

Allied Prop (56 HK): Scheme Done. AGL Next?

To recap: on the 20 April, Allied Group Limited (373 HK) (AGL) made an Offer for 75%-held Allied Properties Hk (56 HK) (APH), by way of a Scheme,...

David Blennerhassett

Shougang Fushan (639 HK): All Fired Up

Coking coal miner and producer Shougang Fushan Resources (639 HK) (SFR) is currently suspended pursuant to the Rules Governing the Listing of...

David Blennerhassett

Allied Props (56 HK)'s Scheme Document Despatched

Back on the 20 April, Allied Group Limited (373 HK) (AGL) made an Offer for Allied Properties Hk (56 HK) (APH), by way of a Scheme, at $1.92/share...

David Blennerhassett

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)