Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>A lot to unpack: the Panel declines IFM's application; the Skyway ROFO has expired; and the Target Statement is now out - the IE says NOT fair and NOT reasonable.</li>
<li>The ROFO expiration should come as no surprise. Nor should the IE conclusion. IFM's independent directors previously issued a <a href="https://announcements.asx.com.au/asxpdf/20260506/pdf/06z8zrlbwr8xht.pdf" target="_blank" rel="noopener">strongly worded rebuttal</a> to IFM's Offer<a href="https://announcements.asx.com.au/asxpdf/20260506/pdf/06z8zrlbwr8xht.pdf" target="_blank" rel="noopener">.</a>
</li>
<li>A key tenant of IFM's Offer evolves around the Skyworth put option: would/will IFM waive the put condition; or Ontario Teachers’ Pension Plan (OTPP) irrevocably waives its right to put?</li>
</ul>


A lot to unpack: the Panel declines IFM's application; the Skyway ROFO has expired; and the Target Statement is now out - the IE says NOT fair and NOT reasonable.
The ROFO expiration should come as no surprise. Nor should the IE conclusion. IFM's independent directors previously issued a strongly worded rebuttal to IFM's Offer.

A key tenant of IFM's Offer evolves around the Skyworth put option: would/will IFM waive the put condition; or Ontario Teachers’ Pension Plan (OTPP) irrevocably waives its right to put?


Atlas Arteria (ALX AU): The IE Says NOT Fair & Reasonable. All Eyes On Skyway's Put Option

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>I summarise the latest spreads and newsflow for the merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, the Philippines, Thailand, and Chinese ADRs.</li>
<li>Highest spreads: <a href="https://www.smartkarma.com/entities/skyworth-group-limited" target="_blank" data-smartkarma-citation="entities:10941:1" rel="noopener">Skyworth (751 HK)</a>, <a href="https://www.smartkarma.com/entities/qoria-ltd" target="_blank" data-smartkarma-citation="entities:30531:1" rel="noopener">Qoria (QOR AU)</a>, <a href="https://www.smartkarma.com/entities/european-lithium-ltd" target="_blank" data-smartkarma-citation="entities:10716:1" rel="noopener">European Lithium (EUR AU)</a>, <a href="https://www.smartkarma.com/entities/enn-energy-holdings-limited" target="_blank" data-smartkarma-citation="entities:316:1" rel="noopener">ENN Energy (2688 HK)</a>, <a href="https://www.smartkarma.com/entities/changhong-jiahua-holdings-ltd" target="_blank" data-smartkarma-citation="entities:5849:1" rel="noopener">Changhong Jiahua (3991 HK)</a>, <a href="https://www.smartkarma.com/entities/humm-group" target="_blank" data-smartkarma-citation="entities:35366:1" rel="noopener">Humm Group (HUM AU)</a>, <a href="https://www.smartkarma.com/entities/ooh-media-ltd" target="_blank" data-smartkarma-citation="entities:8662:1" rel="noopener">oOh!Media Ltd (OML AU)</a>.
</li>
<li>Lowest spreads: <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/taiyo-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:15154:1" rel="noopener">Taiyo Holdings (4626 JP)</a>, <a href="https://www.smartkarma.com/entities/sankei-real-estate-inc" target="_blank" data-smartkarma-citation="entities:35239:1" rel="noopener">Sankei Real Estate (2972 JP)</a>, <a href="https://www.smartkarma.com/entities/toho-titanium-co-ltd" target="_blank" data-smartkarma-citation="entities:12709:1" rel="noopener">Toho Titanium (5727 JP)</a>, <a href="https://www.smartkarma.com/entities/e-grand-co-ltd" target="_blank" data-smartkarma-citation="entities:1821:1" rel="noopener">E'grand Co Ltd (3294 JP)</a>, <a href="https://www.smartkarma.com/entities/global-ltd-the" target="_blank" data-smartkarma-citation="entities:9672:1" rel="noopener">Global Ltd/The (3271 JP)</a>. 
</li>
</ul>


I summarise the latest spreads and newsflow for the merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, the Philippines, Thailand, and Chinese ADRs.
Highest spreads: Skyworth (751 HK), Qoria (QOR AU), European Lithium (EUR AU), ENN Energy (2688 HK), Changhong Jiahua (3991 HK), Humm Group (HUM AU), oOh!Media Ltd (OML AU).

Lowest spreads: Australian Strategic Materials (ASM AU), Taiyo Holdings (4626 JP), Sankei Real Estate (2972 JP), Toho Titanium (5727 JP), E'grand Co Ltd (3294 JP), Global Ltd/The (3271 JP). 



Merger Arb Mondays (11 May) - Altas, European Lithium, Atlantic Lithium, Vault, Emmerson, Shengmu

<ul>
<li>I tally 25 - 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>Two new deals were discussed on Smartkarma this week: <a href="https://www.smartkarma.com/entities/ju-teng-international-holdings-limited" target="_blank" data-smartkarma-citation="entities:9998:1" rel="noopener">Ju Teng International (3336 HK)</a>'s takeunder and<a href="https://www.smartkarma.com/entities/mkh-bhd" target="_blank" data-smartkarma-citation="entities:6966:1" rel="noopener">MKH Bhd (MKH MK)</a>'s MGO. </li>
<li>Key updates/news also took place on: <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/atlas-arteria-ltd" target="_blank" data-smartkarma-citation="entities:14430:1" rel="noopener">Atlas Arteria (ALX AU)</a>, <a href="https://www.smartkarma.com/entities/ooh-media-ltd" target="_blank" data-smartkarma-citation="entities:8662:1" rel="noopener">oOh!Media Ltd (OML AU)</a>, and <a href="https://www.smartkarma.com/entities/webjet-group-limited" target="_blank" data-smartkarma-citation="entities:45177:1" rel="noopener">Webjet Group (WJL AU)</a>.</li>
</ul>


I tally 25 - mostly firm, mostly Asia-Pac - arb transactions currently being discussed and analysed on Smartkarma. Those arbs metrics and upcoming events are detailed below.
Two new deals were discussed on Smartkarma this week: Ju Teng International (3336 HK)'s takeunder andMKH Bhd (MKH MK)'s MGO. 
Key updates/news also took place on: Australian Strategic Materials (ASM AU), Atlas Arteria (ALX AU), oOh!Media Ltd (OML AU), and Webjet Group (WJL AU).


Asia-Pac M&A Weekly Wrap: Atlas Arteria , Ju Teng, MKH, Australian Strategic Mat, OOh!Media, Webjet

<ul>
<li>On the 6th May, <a href="https://www.smartkarma.com/entities/atlas-arteria-ltd" target="_blank" data-smartkarma-citation="entities:14430:1" rel="noopener">Atlas Arteria (ALX AU)</a> declared IFM's Offer to be low, opportunistic, and highly conditional. And tapped the Takeovers Panel to resolve concerns regarding the Offer structure.</li>
<li>The Panel subsequently declined to make interim orders, without elaboration. IFM was now free to dispatch its Bidder's Statement, which it has now down. The Offer is open for tendering.</li>
<li>Not to be outdone, IFM has lodged its own Panel application, specifically centred on Chicago Skyway's right of first offer involving Ontario Teachers.</li>
</ul>


On the 6th May, Atlas Arteria (ALX AU) declared IFM's Offer to be low, opportunistic, and highly conditional. And tapped the Takeovers Panel to resolve concerns regarding the Offer structure.
The Panel subsequently declined to make interim orders, without elaboration. IFM was now free to dispatch its Bidder's Statement, which it has now down. The Offer is open for tendering.
Not to be outdone, IFM has lodged its own Panel application, specifically centred on Chicago Skyway's right of first offer involving Ontario Teachers.


Atlas Arteria (ALX AU): IFM's Offer Now Open; Taps Panel Over OTPP's ROFO

<ul>
<li>The <a href="https://www.smartkarma.com/entities/atlas-arteria-ltd" target="_blank" data-smartkarma-citation="entities:14430:1" rel="noopener">Atlas Arteria (ALX AU)</a> Board has urged shareholders to reject IFM’s offer as “it is too low, opportunistic and highly conditional” and made an application to the Takeovers Panel.</li>
<li>The surprise disclosure of a potential Skyway sale provides an alternative. On 22 April, Atlas issued an ROFO to OTPP at a price in line with the 2022 acquisition price. </li>
<li>Skyway will struggle to attract bidders at the 2022 price, given its weak performance and high implied multiple. The satisfaction of the maximum offer acceptance threshold remains possible.</li>
</ul>


The Atlas Arteria (ALX AU) Board has urged shareholders to reject IFM’s offer as “it is too low, opportunistic and highly conditional” and made an application to the Takeovers Panel.
The surprise disclosure of a potential Skyway sale provides an alternative. On 22 April, Atlas issued an ROFO to OTPP at a price in line with the 2022 acquisition price. 
Skyway will struggle to attract bidders at the 2022 price, given its weak performance and high implied multiple. The satisfaction of the maximum offer acceptance threshold remains possible.


Atlas Arteria (ALX AU): Unsurprising Rejection but Surprising Potential Skyway Sale

Australia

Atlas Arteria Limted operates as an infrastructure developer and operator. The Company constructs highways, roads, bridges, and tunnels. Atlas Arteria also collects toll. Atlas Arteria serves clients worldwide.

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Atlas Arteria (ALX AU)