Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Infant formula play <a href="https://www.smartkarma.com/entities/yashili-international-holdings-ltd" target="_blank" data-smartkarma-citation="entities:3397:1" rel="noopener">Yashili International Holdings (1230 HK)</a> is currently suspended "pursuant to The Hong Kong Code on Takeovers and Mergers".</li>
<li>Shares closed up 98% yesterday, on clear news leakage, before shares were suspended. <a href="https://www.smartkarma.com/entities/china-mengniu-dairy-co" target="_blank" data-smartkarma-citation="entities:354:1" rel="noopener">China Mengniu Dairy Co (2319 HK)</a> holds 51.04% with <a href="https://www.smartkarma.com/entities/danone-sa" target="_blank" data-smartkarma-citation="entities:21403:1" rel="noopener">Danone SA (BN FP)</a> another 25%.  </li>
<li>This trading halt follows the recent successful Offer for <a href="https://www.smartkarma.com/entities/ausnutria-dairy-corp-ltd" target="_blank" data-smartkarma-citation="entities:13799:1" rel="noopener">Ausnutria Dairy Corp (1717 HK)</a>, one of Yashili's key peers.</li>
</ul>


Infant formula play Yashili International Holdings (1230 HK) is currently suspended "pursuant to The Hong Kong Code on Takeovers and Mergers".
Shares closed up 98% yesterday, on clear news leakage, before shares were suspended. China Mengniu Dairy Co (2319 HK) holds 51.04% with Danone SA (BN FP) another 25%.  
This trading halt follows the recent successful Offer for Ausnutria Dairy Corp (1717 HK), one of Yashili's key peers.


<ul>
<li>52.7%. The only number that matters. That satisfied the acceptance condition to the mandatory conditional cash Offer. But it was a close-run thing.</li>
<li>The Offer is now unconditional and will remain open for acceptance until the 17 March. </li>
<li>Yili has no intention to privatise <a href="https://www.smartkarma.com/entities/ausnutria-dairy-corp-ltd" target="_blank" data-smartkarma-citation="entities:13799:1" rel="noopener">Ausnutria Dairy Corp (1717 HK)</a> and intends to maintain its listing following the close of the Offer.</li>
</ul>


52.7%. The only number that matters. That satisfied the acceptance condition to the mandatory conditional cash Offer. But it was a close-run thing.
The Offer is now unconditional and will remain open for acceptance until the 17 March. 
Yili has no intention to privatise Ausnutria Dairy Corp (1717 HK) and intends to maintain its listing following the close of the Offer.


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.

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/farm-fresh-berhad" target="_blank" data-smartkarma-citation="entities:34617:1" rel="noopener">Farm Fresh Berhad (FF MY)</a> is a leading vertically integrated dairy player in Malaysia. It has launched an IPO to raise $239 million. </li>
<li>The business is navigating the normalisation of consumer demand and input cost inflation by delivering healthy growth, market share gains, creditable margin performance and cash generation. </li>
<li>Overall, this IPO is worth a closer look. The offer period is from 28 February to 10 March. The listing is on 22 March.   </li>
</ul>



Farm Fresh Berhad (FF MY) is a leading vertically integrated dairy player in Malaysia. It has launched an IPO to raise $239 million. 
The business is navigating the normalisation of consumer demand and input cost inflation by delivering healthy growth, market share gains, creditable margin performance and cash generation. 
Overall, this IPO is worth a closer look. The offer period is from 28 February to 10 March. The listing is on 22 March.   


<ul>
<li>
<a href="https://www.smartkarma.com/entities/inner-mongolia-yili-indus-a" target="_blank" data-smartkarma-citation="entities:3220:1" rel="noopener">Inner Mongolia Yili Industrial Group (A) (600887 CH)</a> has launched a conditional MGO at HK$10.06 per share with a first and final closing date of 3 and 17 March, respectively. </li>
<li>The MGO is conditional on the offeror and concert parties holding more than 50% of <a href="https://www.smartkarma.com/entities/ausnutria-dairy-corp-ltd" target="_blank" data-smartkarma-citation="entities:13799:1" rel="noopener">Ausnutria Dairy Corp (1717 HK)</a>'s voting rights. Yili owns 34.33% of outstanding shares.</li>
<li>Around 37.5% of public shareholders (assuming other directors accept the offer) will need to accept the MGO for it to become unconditional. Achieving the 50%+ voting threshold could be challenging. </li>
</ul>



Inner Mongolia Yili Industrial Group (A) (600887 CH) has launched a conditional MGO at HK$10.06 per share with a first and final closing date of 3 and 17 March, respectively. 
The MGO is conditional on the offeror and concert parties holding more than 50% of Ausnutria Dairy Corp (1717 HK)'s voting rights. Yili owns 34.33% of outstanding shares.
Around 37.5% of public shareholders (assuming other directors accept the offer) will need to accept the MGO for it to become unconditional. Achieving the 50%+ voting threshold could be challenging. 


Ausnutria’s Conditional MGO Open, IFA Opinion

<ul>
<li>
<a href="https://www.smartkarma.com/entities/ausnutria-dairy-corp-ltd" target="_blank" data-smartkarma-citation="entities:13799:1" rel="noopener">Ausnutria Dairy Corp (1717 HK)</a>'s Composite Document has now been despatched. <a href="https://www.smartkarma.com/entities/inner-mongolia-yili-indus-a" target="_blank" data-smartkarma-citation="entities:3220:1" rel="noopener">Inner Mongolia Yili Industrial (600887 CH)</a>'s Offer is open for acceptances with a first close on the 3 March.</li>
<li>The Offer is conditional on 50% acceptances, with Yili holding 34.33%. </li>
<li>This transaction should get up. The IFA considers the Offer is fair and reasonable. </li>
</ul>



Ausnutria Dairy Corp (1717 HK)'s Composite Document has now been despatched. Inner Mongolia Yili Industrial (600887 CH)'s Offer is open for acceptances with a first close on the 3 March.
The Offer is conditional on 50% acceptances, with Yili holding 34.33%. 
This transaction should get up. The IFA considers the Offer is fair and reasonable. 


Ausnutria (1717 HK): Composite Doc Out. Offer Now Open

Hong Kong

Ausnutria Dairy is an international company specializing in the research, development, production, marketing, and distribution of dairy and nutrition products. Its diverse portfolio includes infant formula (cow and goat milk-based), adult formula, and probiotic products, sold under various brands globally. The company was founded in 2003 and is headquartered in Sheung Wan, Hong Kong.

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Ausnutria Dairy (1717 HK)

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