Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>
HK$1.38/Share. That's the takeaway as <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd-d7b798e2-202d-4e01-9a1e-799e2ae8f0c7" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group (9988 HK)</a> enters an SPA to offload its 78.7% stake in <a href="https://www.smartkarma.com/entities/sun-art-retail-group-ltd" target="_blank" data-smartkarma-citation="entities:401:1" rel="noopener">Sun Art (6808 HK)</a> at <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2025/0101/2025010100067.pdf" target="_blank" rel="noopener">HK$1.38/share</a>, a 44.4% discount to last close.</li>
<li>The buyer, Paragon Shine, an entity under Chinese PE outfit DCP Capital, is paying ~HK$12.3bn compared to BABA's HK$28.1bn purchase of a 51% stake in October 2020.</li>
<li>Should the SPA complete, an unconditional MGO is triggered. Minorities tendering can receive up to HK$1.58/share. But the question is: why would BABA be cashing out at this price?</li>
</ul>



HK$1.38/Share. That's the takeaway as Alibaba Group (9988 HK) enters an SPA to offload its 78.7% stake in Sun Art (6808 HK) at HK$1.38/share, a 44.4% discount to last close.
The buyer, Paragon Shine, an entity under Chinese PE outfit DCP Capital, is paying ~HK$12.3bn compared to BABA's HK$28.1bn purchase of a 51% stake in October 2020.
Should the SPA complete, an unconditional MGO is triggered. Minorities tendering can receive up to HK$1.58/share. But the question is: why would BABA be cashing out at this price?


Sun Art Retail (6808 HK): BABA Takes Massive Hit After Inking SPA @ HK$1.38

<ul>
<li>Back on the 5th December, Gordan Tang (&amp; his wife Celine) acquired a 2.14% stake in <a href="https://www.smartkarma.com/entities/suntec-reit" target="_blank" data-smartkarma-citation="entities:151:1" rel="noopener">Suntec REIT (SUN SP)</a>, lifting their stake to 31.45% from 29.31%, triggering a MGO.</li>
<li>This had all the hallmarks of a technical Offer. The Offer price was S$1.16/share compared to the S$1.17/share undisturbed price. The IFA opined the Offer was not fair nor reasonable. </li>
<li>The Tangs have now bumped to S$1.19/share. Terms are not final. The IFA viewpoint won't budge. This is an opportunistic move from the Tangs. But why not roll the dice?</li>
</ul>


Back on the 5th December, Gordan Tang (&amp; his wife Celine) acquired a 2.14% stake in Suntec REIT (SUN SP), lifting their stake to 31.45% from 29.31%, triggering a MGO.
This had all the hallmarks of a technical Offer. The Offer price was S$1.16/share compared to the S$1.17/share undisturbed price. The IFA opined the Offer was not fair nor reasonable. 
The Tangs have now bumped to S$1.19/share. Terms are not final. The IFA viewpoint won't budge. This is an opportunistic move from the Tangs. But why not roll the dice?


Suntec REIT (SUN SP): Tang's Curious Bump

Greatview Aseptic Packaging / Event-Driven

<ul>
<li>Quite a lot of new news to digest - <a href="https://www.smartkarma.com/entities/greatview-aseptic-packaging" target="_blank" data-smartkarma-citation="entities:10802:1" rel="noopener">GAPack (468 HK)</a>'s IFA, not altogether surprisingly, <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2025/0107/2025010700041.pdf" target="_blank" rel="noopener">concluded</a> that shareholders should not accept the Offer - in bold, red caps. </li>
<li>But more surprisingly, is the <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2025/0106/2025010601137.pdf" target="_blank" rel="noopener">disclosure announcement</a> that <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> has reduced its stake below 5%.  </li>
<li>Evidently Mengniu is keeping its options open to tender - or not - and not have to make public disclosures. Keep an eye out on CCASS movements.</li>
</ul>


Quite a lot of new news to digest - GAPack (468 HK)'s IFA, not altogether surprisingly, concluded that shareholders should not accept the Offer - in bold, red caps. 
But more surprisingly, is the disclosure announcement that China Mengniu Dairy Co (2319 HK) has reduced its stake below 5%.  
Evidently Mengniu is keeping its options open to tender - or not - and not have to make public disclosures. Keep an eye out on CCASS movements.


GAPack (468 HK): IFA Says "Reject". But Mengniu Selling Down

Shinko Electric Industries / Event-Driven

<ul>
<li>I tally 51 - mostly firm, mostly Asia-Pac - transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.</li>
<li>One new deal was discussed this week: CC Capital's NBIO for <a href="https://www.smartkarma.com/entities/insignia-financial-ltd" target="_blank" data-smartkarma-citation="entities:12349:1" rel="noopener">Insignia Financial (IFL AU)</a>. </li>
<li>Key updates/news took place on: <a href="https://www.smartkarma.com/entities/arcadium-lithium-plc" target="_blank" data-smartkarma-citation="entities:40438:1" rel="noopener">Arcadium Lithium (LTM AU)</a>, <a href="https://www.smartkarma.com/entities/cpmc-holdings-ltd" target="_blank" data-smartkarma-citation="entities:10427:1" rel="noopener">CPMC Holdings (906 HK)</a>, <a href="https://www.smartkarma.com/entities/greatview-aseptic-packaging" target="_blank" data-smartkarma-citation="entities:10802:1" rel="noopener">Greatview Aseptic Packaging (468 HK)</a>, <a href="https://www.smartkarma.com/entities/haitong-securities-co-ltd-h" target="_blank" data-smartkarma-citation="entities:5665:1" rel="noopener">Haitong Securities (H) (6837 HK)</a>, and <a href="https://www.smartkarma.com/entities/shinko-electric-industries" target="_blank" data-smartkarma-citation="entities:15066:1" rel="noopener">Shinko Electric Industries (6967 JP)</a>.</li>
</ul>


I tally 51 - mostly firm, mostly Asia-Pac - transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
One new deal was discussed this week: CC Capital's NBIO for Insignia Financial (IFL AU). 
Key updates/news took place on: Arcadium Lithium (LTM AU), CPMC Holdings (906 HK), Greatview Aseptic Packaging (468 HK), Haitong Securities (H) (6837 HK), and Shinko Electric Industries (6967 JP).


(Mostly) Asia-Pac M&A: Insignia Financial, Arcadium, CPMC, GAPack, Haitong Sec., Shinko Electric

<ul>
<li>Back on the 20 December, <a href="https://www.smartkarma.com/entities/vcredit-holdings-ltd" target="_blank" data-smartkarma-citation="entities:27143:1" rel="noopener">VCredit Holdings (2003 HK)</a>, a provider of consumer financial services in China, announced a unconditional MGO from Ma Ting Hung, VCredit's chairman. and concert parties.</li>
<li>The catch? The Offer Price of HK$1.80/share was a 9.09% discount to undisturbed. It will not be increased. </li>
<li>VCredit's Composite Doc is now <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2025/0109/2025010900641.pdf" target="_blank" rel="noopener">out</a>, with the Offer open for tendering, with a 3rd February first close. The IFA says "not fair and not reasonable". Trading 45% through terms.</li>
</ul>


Back on the 20 December, VCredit Holdings (2003 HK), a provider of consumer financial services in China, announced a unconditional MGO from Ma Ting Hung, VCredit's chairman. and concert parties.
The catch? The Offer Price of HK$1.80/share was a 9.09% discount to undisturbed. It will not be increased. 
VCredit's Composite Doc is now out, with the Offer open for tendering, with a 3rd February first close. The IFA says "not fair and not reasonable". Trading 45% through terms.


VCredit (2003 HK): Offer Now Open. IFA Says Not Fair. Not Even Close

Singapore

Avarga Limited operates as an investment holding company. The Company, through its subsidiaries, focuses on paper manufacturing, power generation, and building materials distribution. Avarga also recycles corrugated cartons, newspapers, magazines, office waste, and any other printed paper material. Avarga serves customers worldwide.

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Avarga Ltd (AVARGA SP)

Sun Art Retail (6808 HK): BABA Takes Massive Hit After Inking SPA @ HK$1.38

The SPA completed on the 27th Feb, triggering the MGO. Composite Doc to be dispatched on or before the 6th Mar. Under the terms of the SPA, an...

David Blennerhassett

Suntec REIT (SUN SP): Tang's Curious Bump

After the Tangs bumped to S$1.19/share on the 8th January, the IFA, with a fair value range of S$2.07-S$2.26, concluded on the 17th January that...

David Blennerhassett

GAPack (468 HK): IFA Says "Reject". But Mengniu Selling Down

The first close of XJF's Offer for Greatview Aseptic Packaging (468 HK) is the 21st January, and for a number of investors, the deadline to tender...

David Blennerhassett

(Mostly) Asia-Pac M&A: Insignia Financial, Arcadium, CPMC, GAPack, Haitong Sec., Shinko Electric

This insight provides a summary of gross/annualised spreads (on deals discussed on Smartkarma) across Asia-Pacific as at the last trading date, and...

David Blennerhassett

VCredit (2003 HK): Offer Now Open. IFA Says Not Fair. Not Even Close

Unless you have some strong opinion on the back-end - I don't - this is an avoid. No one will tender into this Offer. Nothng to see here.

David Blennerhassett

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