IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

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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.

Event-Driven

China VAST Industrial Urban Development / Event-Driven

China VAST Industrial Urban Development (CVI HK)

<ul>
<li>
<a href="https://www.smartkarma.com/entities/china-vast-industrial-urban-development-company-limited" target="_blank" data-smartkarma-citation="entities:3212:1" rel="noopener">China Vast Industrial Urban Development (6166 HK)</a>'s scheme document is out with the court meeting scheduled for 23 November. The IFA considers the offer to be fair and reasonable. </li>
<li>Key conditions include approval by at least 75% of independent shareholders (&lt;10% rejection). Shareholders with blocking stakes either provided irrecovables or will likely support the offer.</li>
<li>The offer is not great but headcount test is not applicable. At last close and for the 14 December payment, the gross and annualised spread is 0.8% and 6.7%, respectively.</li>
</ul>



China Vast Industrial Urban Development (6166 HK)'s scheme document is out with the court meeting scheduled for 23 November. The IFA considers the offer to be fair and reasonable. 
Key conditions include approval by at least 75% of independent shareholders (&lt;10% rejection). Shareholders with blocking stakes either provided irrecovables or will likely support the offer.
The offer is not great but headcount test is not applicable. At last close and for the 14 December payment, the gross and annualised spread is 0.8% and 6.7%, respectively.


Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>Back on 2 June, SOE terminal operator <a href="https://www.smartkarma.com/entities/xiamen-international-port-h" target="_blank" data-smartkarma-citation="entities:5390:1" rel="noopener">Xiamen International Port (3378 HK)</a> <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2022/0602/2022060202446.pdf" target="_blank" rel="noopener">announced</a> a pre-conditional Offer of $2.25/share from Xiamen Port Holding, a Fujian SASAC-controlled entity.</li>
<li>The pre-conditions  - NDRC, MoC, SAFE, and CSRC - were fulfilled on the <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2022/0816/2022081601198.pdf" target="_blank" rel="noopener">16 August</a>.</li>
<li>The Composite Doc is now <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2022/0822/2022082200558.pdf" target="_blank" rel="noopener">out</a>. The H-class meeting will be held on the 16 September. There is no tendering condition. Payment should be the 6 October.</li>
</ul>


Back on 2 June, SOE terminal operator Xiamen International Port (3378 HK) announced a pre-conditional Offer of $2.25/share from Xiamen Port Holding, a Fujian SASAC-controlled entity.
The pre-conditions  - NDRC, MoC, SAFE, and CSRC - were fulfilled on the 16 August.
The Composite Doc is now out. The H-class meeting will be held on the 16 September. There is no tendering condition. Payment should be the 6 October.


Xiamen Port (3378 HK)’s Composite Doc Out; Shareholders To Vote On 16 Sept

EVOC Intelligent Technology / Event-Driven

<ul>
<li>After shares were suspended on the 1 August, electronics play and property developer <a href="https://www.smartkarma.com/entities/evoc-intelligent-technology-company-limited-h" target="_blank" data-smartkarma-citation="entities:2015:1" rel="noopener">EVOC Intelligent Technology Company Limited H (2308 HK)</a> has <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2022/0808/2022080801133.pdf" target="_blank" rel="noopener">announced</a> a privatisation at HK$1.75 per H-share.</li>
<li>This Offer is by way of a Merger by Absorption, which incorporates a Scheme-like vote. There is no tendering condition.
</li>
<li>The premium to last close is just 15.13%; however, it is a 42.28% premium to the five-day closing average. This is EVOC's third privatisation attempt in the past five years. </li>
</ul>


After shares were suspended on the 1 August, electronics play and property developer EVOC Intelligent Technology Company Limited H (2308 HK) has announced a privatisation at HK$1.75 per H-share.
This Offer is by way of a Merger by Absorption, which incorporates a Scheme-like vote. There is no tendering condition.

The premium to last close is just 15.13%; however, it is a 42.28% premium to the five-day closing average. This is EVOC's third privatisation attempt in the past five years. 


<ul>
<li>Ten months after China's SAMR torpedoed Blackstone's Offer, <a href="https://www.smartkarma.com/entities/soho-china-ltd" target="_blank" data-smartkarma-citation="entities:4123:1" rel="noopener">SOHO China (410 HK)</a> has fallen 61%. Its portfolio of high-quality properties are currently trading at 0.2x P/B. </li>
<li>Recent woes concern electricity price violations, tax evasion, and now an investigation into CFO Ni Kuiyang's alleged insider trading. </li>
<li>SOHO is trading cheap on a standalone basis; and to peers. This is still not a good reason to get involved.</li>
</ul>


Ten months after China's SAMR torpedoed Blackstone's Offer, SOHO China (410 HK) has fallen 61%. Its portfolio of high-quality properties are currently trading at 0.2x P/B. 
Recent woes concern electricity price violations, tax evasion, and now an investigation into CFO Ni Kuiyang's alleged insider trading. 
SOHO is trading cheap on a standalone basis; and to peers. This is still not a good reason to get involved.


<ul>
<li>SOE terminal operator <a href="https://www.smartkarma.com/entities/xiamen-international-port-h" target="_blank" data-smartkarma-citation="entities:5390:1" rel="noopener">Xiamen International Port (3378 HK)</a> has announced a pre-conditional Offer from Xiamen Port Holding, a Fujian SASAC-controlled entity.</li>
<li>The Offer price is HK$2.25 per H-share, a 55% premium to last close. The Offer price will NOT be increased. The final dividend will be added to the cancellation price. </li>
<li>Pre-Conditions include approvals from NDRC, MoC, SAFE, and CSRC. There is no tendering condition. This deal mirrors <a href="https://www.smartkarma.com/entities/guodian-technology-environment-group-corp" target="_blank" data-smartkarma-citation="entities:3941:1" rel="noopener">Guodian Technology (1296 HK)</a>, <a href="https://www.smartkarma.com/entities/beijing-capital-land-ltd-h" target="_blank" data-smartkarma-citation="entities:4543:1" rel="noopener">BCL (2868 HK)</a>, and <a href="https://www.smartkarma.com/entities/shanghai-jin-jiang-capital-company-limited" target="_blank" data-smartkarma-citation="entities:15781:1" rel="noopener">Jin Jiang Capital (2006 HK)</a>.</li>
</ul>


SOE terminal operator Xiamen International Port (3378 HK) has announced a pre-conditional Offer from Xiamen Port Holding, a Fujian SASAC-controlled entity.
The Offer price is HK$2.25 per H-share, a 55% premium to last close. The Offer price will NOT be increased. The final dividend will be added to the cancellation price. 
Pre-Conditions include approvals from NDRC, MoC, SAFE, and CSRC. There is no tendering condition. This deal mirrors Guodian Technology (1296 HK), BCL (2868 HK), and Jin Jiang Capital (2006 HK).


Xiamen Port (3378 HK)’s Pre-Conditional Offer

China

Beijing Capital Land is a real estate company primarily engaged in property development, investment, and commercial real estate operations in China. It develops residential and office buildings, manages land, and provides property consulting services. The company was founded in 2002 and is headquartered in Beijing, China.

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Beijing Capital Land (2868 HK)

China VAST’s Vote on 23 November

The offer is not great but this is a done deal. At the last close and for the 14 December payment, the annualised spread is 6.7%.

Arun George

Xiamen Port (3378 HK)’s Composite Doc Out; Shareholders To Vote On 16 Sept

This is done - play the spread here. Assuming payment early October payment, this is trading at a modestly attractive gross/annualised spread at 2%...

David Blennerhassett

EVOC (2308 HK)'s Merger By Absorption

There's enough here to see the Offer get up. I'd be buying up to around $1.67 or a gross/annualised spread of 5%/15%, assuming a late-November...

David Blennerhassett

SOHO China (410 HK): Still Toxic

The accusations have not stopped since Blackstone's Offer was thwarted. Avoid. SOHO's name was toxic as soon as SAMR dinged the deal. It is no less...

David Blennerhassett

Xiamen Port (3378 HK)’s Pre-Conditional Offer

Assuming payment mid-June, I would pay up to HK$2.08/share or a gross/annualised spread at 9%/24% - including the divy. Guodian Tech traded at a...

David Blennerhassett

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