Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Back on the 28th November, <a href="https://www.smartkarma.com/entities/avjennings-ltd" target="_blank" data-smartkarma-citation="entities:12578:1" rel="noopener">AVJennings Ltd (AVJ AU)</a>, a reputable home builder in Australia/New Zealand, <a href="https://announcements.asx.com.au/asxpdf/20241128/pdf/06bywtrktl1j89.pdf" target="_blank" rel="noopener">entered into a deed</a> granting the AVID consortium exclusive confirmatory due diligence.</li>
<li>The AVID consortium, comprising Proprium Capital Partners and AVID Property Group, pitched an NBIO (by way of a Scheme) of A$0.67/share. Singapore's SC Global (54.5% shareholder) was supportive.</li>
<li>In what appeared to be clean deal, <a href="https://www.smartkarma.com/entities/ho-bee-land-ltd" target="_blank" data-smartkarma-citation="entities:18298:1" rel="noopener">Ho Bee Land Ltd (HOBEE SP)</a> then acquired a <a href="https://announcements.asx.com.au/asxpdf/20241227/pdf/06d2p7fykvslm6.pdf" target="_blank" rel="noopener">5.39% stake</a> on the 23rd December. Now they've made their own <a href="https://announcements.asx.com.au/asxpdf/20250115/pdf/06dk238wkx2778.pdf" target="_blank" rel="noopener">NBIO at A$0.70/share</a>. </li>
</ul>


Back on the 28th November, AVJennings Ltd (AVJ AU), a reputable home builder in Australia/New Zealand, entered into a deed granting the AVID consortium exclusive confirmatory due diligence.
The AVID consortium, comprising Proprium Capital Partners and AVID Property Group, pitched an NBIO (by way of a Scheme) of A$0.67/share. Singapore's SC Global (54.5% shareholder) was supportive.
In what appeared to be clean deal, Ho Bee Land Ltd (HOBEE SP) then acquired a 5.39% stake on the 23rd December. Now they've made their own NBIO at A$0.70/share. 


AVJennings (AVJ AU): Ho Bee's Superior Proposal

<ul>
<li>After wealth manager <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> announced - and subsequently rejected  Bain's A$4.00/share Offer, CC Capital waded in on the 6th January with its own A$4.30/share NBIO.</li>
<li>IFL have yet to reach an opinion on CC Capital bid. And to make things interesting, Bain has  sweetened its Offer to $4.30/share, matching CC Capital's terms.</li>
<li>What now? Either, IFL opens the data room to both parties. Or rejects both. I think they should engage.</li>
</ul>


After wealth manager Insignia Financial (IFL AU) announced - and subsequently rejected  Bain's A$4.00/share Offer, CC Capital waded in on the 6th January with its own A$4.30/share NBIO.
IFL have yet to reach an opinion on CC Capital bid. And to make things interesting, Bain has  sweetened its Offer to $4.30/share, matching CC Capital's terms.
What now? Either, IFL opens the data room to both parties. Or rejects both. I think they should engage.


Insignia Financial (IFL AU): Bain Calls CC Capital's $4.30/Share NBIO

<ul>
<li>Ahead of <a href="https://www.smartkarma.com/entities/shanghai-henlius-biotech-inc" target="_blank" data-smartkarma-citation="entities:27888:1" rel="noopener">Shanghai Henlius Biotech (2696 HK)</a>'s EGM and Court Meeting on the 22 January, the focus has shifted to Loyal Valley Capital (LVC)'s continued buying in the market.</li>
<li>After the close of market last Friday, LVC held <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2025/0110/2025011000368.pdf" target="_blank" rel="noopener">7.8295%</a>, above the 7.826% blocking stake. That % was as at 9th January. I assume LVC are still buying.</li>
<li>Yet if you analyse how LVC has traded in and out of Henlius, they are not in it to block. They're in for the back-end scrip option.  </li>
</ul>


Ahead of Shanghai Henlius Biotech (2696 HK)'s EGM and Court Meeting on the 22 January, the focus has shifted to Loyal Valley Capital (LVC)'s continued buying in the market.
After the close of market last Friday, LVC held 7.8295%, above the 7.826% blocking stake. That % was as at 9th January. I assume LVC are still buying.
Yet if you analyse how LVC has traded in and out of Henlius, they are not in it to block. They're in for the back-end scrip option.  


Henlius (2696 HK): LVC Won't Block. Buy Here & On Weakness

<ul>
<li>Back on the 6th January, <a href="https://www.smartkarma.com/entities/smart-share-global-limited" target="_blank" data-smartkarma-citation="entities:32217:1" rel="noopener">Smart Share Global (EM US)</a>, the largest provider of mobile device charging services in China, <a href="https://app.quotemedia.com/data/downloadFiling?webmasterId=90423&amp;ref=318826893&amp;type=PDF&amp;symbol=EM&amp;cdn=92fc68ff7b8532b8b229f6ee242a0168&amp;companyName=Smart+Share+Global+Limited&amp;formType=6-K&amp;formDescription=Report+of+foreign+private+issuer+pursuant+to+Rule+13a-16+or+15d-16+under+the+Securities+Exchange+Act+of+1934&amp;dateFiled=2025-01-06" target="_blank" rel="noopener">announced</a> a preliminary non-binding proposal.</li>
<li>A consortium led by Mars Guangyuan Cai, Chairman and CEO,  collectively holding 63.4% of the voting rights, have made an Offer at US$0.625/share (US$1.25/ADS), a 74.8% premium to last close. </li>
<li>Should a definitive agreement be inked, this is done. The risk to the trade, as with many US-listed China plays, is one of timing. Trading at a 26.6% gross spread.</li>
</ul>


Back on the 6th January, Smart Share Global (EM US), the largest provider of mobile device charging services in China, announced a preliminary non-binding proposal.
A consortium led by Mars Guangyuan Cai, Chairman and CEO,  collectively holding 63.4% of the voting rights, have made an Offer at US$0.625/share (US$1.25/ADS), a 74.8% premium to last close. 
Should a definitive agreement be inked, this is done. The risk to the trade, as with many US-listed China plays, is one of timing. Trading at a 26.6% gross spread.


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>We summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.</li>
<li>Highest spreads: <a href="https://www.smartkarma.com/entities/smart-share-global-limited" target="_blank" data-smartkarma-citation="entities:32217:1" rel="noopener">Smart Share Global (EM US)</a>, <a href="https://www.smartkarma.com/entities/pressance-corp" target="_blank" data-smartkarma-citation="entities:17783:1" rel="noopener">Pressance Corp (3254 JP)</a>, <a href="https://www.smartkarma.com/entities/seven-i-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:1041:1" rel="noopener">Seven &amp; I Holdings (3382 JP)</a>, <a href="https://www.smartkarma.com/entities/get-nice-financial-group-ltd" target="_blank" data-smartkarma-citation="entities:29667:1" rel="noopener">Get Nice Financial Group Ltd (1469 HK)</a>, <a href="https://www.smartkarma.com/entities/esr-group-ltd" target="_blank" data-smartkarma-citation="entities:27983:1" rel="noopener">ESR Group (1821 HK)</a>. 
</li>
<li>Lowest spreads: <a href="https://www.smartkarma.com/entities/lifestyle-china-group-ltd" target="_blank" data-smartkarma-citation="entities:26090:1" rel="noopener">Lifestyle China (2136 HK)</a>, <a href="https://www.smartkarma.com/entities/makino-milling-machine-co" target="_blank" data-smartkarma-citation="entities:5200:1" rel="noopener">Makino Milling Machine Co (6135 JP)</a>, <a href="https://www.smartkarma.com/entities/macromill-inc" target="_blank" data-smartkarma-citation="entities:24026:1" rel="noopener">Macromill, Inc (3978 JP)</a>, <a href="https://www.smartkarma.com/entities/fuji-soft-inc" target="_blank" data-smartkarma-citation="entities:17504:1" rel="noopener">Fuji Soft Inc (9749 JP)</a>, <a href="https://www.smartkarma.com/entities/latin-resources-ltd" target="_blank" data-smartkarma-citation="entities:8770:1" rel="noopener">Latin Resources (LRS AU)</a>.    </li>
</ul>


We summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
Highest spreads: Smart Share Global (EM US), Pressance Corp (3254 JP), Seven &amp; I Holdings (3382 JP), Get Nice Financial Group Ltd (1469 HK), ESR Group (1821 HK). 

Lowest spreads: Lifestyle China (2136 HK), Makino Milling Machine Co (6135 JP), Macromill, Inc (3978 JP), Fuji Soft Inc (9749 JP), Latin Resources (LRS AU).    


Merger Arb Mondays (13 Jan) - ESR, Henlius, Goldlion, Canvest, 7&I, Fujitsu General, Pressance

Australia

AVJennings Limited operates in the land development and housing sectors. The Company constructs residential houses in Australia along with residential land development. AVJennings serves customers in Australia.

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Avjennings Ltd (AVJ AU)

AVJennings (AVJ AU): Ho Bee's Superior Proposal

Although terms are indicative, buy a tick or three below Ho Bee's terms. You could also consider buying the Singaporean leg (quoted in AUD), and...

David Blennerhassett

Henlius (2696 HK): LVC Won't Block. Buy Here & On Weakness

Trading wide at a 11.8% gross spread (using today's opening print) with expected payment around the third week of Feb. That's a buy here. I'd pay...

David Blennerhassett

Merger Arb Mondays (13 Jan) - ESR, Henlius, Goldlion, Canvest, 7&I, Fujitsu General, Pressance

This week, the highest gross spreads are Smart Share (26.3%), Pressance (22.1%), Seven & I (15.2%), Get Nice Financial (9.9%), ESR (8.3%), Goldlion...

Arun George

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

AVJennings (AVJ AU): Ho Bee's Superior Proposal

Although terms are indicative, buy a tick or three below Ho Bee's terms. You could also consider buying the Singaporean leg (quoted in AUD), and...

David Blennerhassett

Insignia Financial (IFL AU): Bain Calls CC Capital's $4.30/Share NBIO

Both Offers are non-binding. IFL may hold out for more, but they should engage here. However, I'm still not confident Tanarra is willing to kick...

David Blennerhassett

Henlius (2696 HK): LVC Won't Block. Buy Here & On Weakness

Trading wide at a 11.8% gross spread (using today's opening print) with expected payment around the third week of Feb. That's a buy here. I'd pay...

David Blennerhassett

Smart Share Global (EM US)'s MBO NBIO

Should a defintive agreement be inked, this is done. The risk to the trade, as with many US-listed China plays, is one of timing. Trading at a...

David Blennerhassett

Merger Arb Mondays (13 Jan) - ESR, Henlius, Goldlion, Canvest, 7&I, Fujitsu General, Pressance

This week, the highest gross spreads are Smart Share (26.3%), Pressance (22.1%), Seven & I (15.2%), Get Nice Financial (9.9%), ESR (8.3%), Goldlion...

Arun George