Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Last Week in Event SPACE:  Intouch, Toshiba, Orocobre/Galaxy, Tilt, Primewest/Centuria, Huarong

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<p>Back on the 1 February, Zhuhai Huafa, wholly-owned by Zhuhai SASAC, entered into a share purchase agreement (SPA) to acquire domestic shares in mobile device manufacturer <a href="https://www.smartkarma.com/entities/beijing-digital-telecom-co-ltd" target="_blank" data-smartkarma-citation="entities:4113:1" rel="noopener">Beijing Digital Telecom (6188 HK)</a> from Di Er Tong and Digital Science &amp; Technology, collectively the controlling shareholders of Beijing Digital.</p>
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<p>Upon completion of the SPA, Zhuhai Huafa and concert parties would hold 37.99%, triggering a mandatory general offer (MGO). The Offer price will be HK$3.8429 per H-Share, a premium of 7.04% to last close. A concurrent Offer of RM3.2030/share will be made for the domestic shares.</p>
<h3>The New News</h3>
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<p>The SPA,  which was conditional on, inter alia, SASAC and NDRC approval, together with miscellaneous conditions such as the entering into of loan and concert party agreements, has now <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0407/2021040702361.pdf" target="_blank" rel="noopener">completed</a>. The MGO has subsequently been triggered.</p>
<p>The MGO has a 50% tendering condition - attached to ALL voting rights of Beijing Capital. No irrevocables have been received to date.</p>
<p>The Composite Document is expected to be despatched by the 16 April, at which time the Offer will be open for acceptances.</p>
<p>As always, more below the fold. </p>
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Back on the 1 February, Zhuhai Huafa, wholly-owned by Zhuhai SASAC, entered into a share purchase agreement (SPA) to acquire domestic shares in mobile device manufacturer Beijing Digital Telecom (6188 HK) from Di Er Tong and Digital Science &amp; Technology, collectively the controlling shareholders of Beijing Digital.


Upon completion of the SPA, Zhuhai Huafa and concert parties would hold 37.99%, triggering a mandatory general offer (MGO). The Offer price will be HK$3.8429 per H-Share, a premium of 7.04% to last close. A concurrent Offer of RM3.2030/share will be made for the domestic shares.
The New News


The SPA,  which was conditional on, inter alia, SASAC and NDRC approval, together with miscellaneous conditions such as the entering into of loan and concert party agreements, has now completed. The MGO has subsequently been triggered.
The MGO has a 50% tendering condition - attached to ALL voting rights of Beijing Capital. No irrevocables have been received to date.
The Composite Document is expected to be despatched by the 16 April, at which time the Offer will be open for acceptances.
As always, more below the fold. 









Beijing Digital (6188 HK): Zhuhai SASAC's MGO On Track

<p>Zhuhai Huafa, wholly-owned by Zhuhai SASAC, has entered into a share purchase agreement (SPA) to acquire domestic shares in mobile device manufacturer <a href="https://www.smartkarma.com/entities/beijing-digital-telecom-co-ltd" target="_blank" data-smartkarma-citation="entities:4113:1" rel="noopener">Beijing Digital Telecom (6188 HK)</a> from Di Er Tong and Digital Science &amp; Technology, collectively the controlling shareholders of Beijing Digital.</p>
<p>Following the completion of the SPA and the entering into a concert party agreement, Zhuhai Huafa and concert parties would hold 37.99%, triggering a mandatory general offer (MGO). The Offer price will be HK$3.8429 per H-Share, a premium of 7.04% to last close. A concurrent Offer of RM3.2030/share will be made for the domestic shares.</p>
<p>The SPA is conditional on, inter alia, SASAC and NDRC approval, together with miscellaneous conditions such as the entering into of loan and concert party agreements. SASAC approval has already been obtained.</p>
<p>The MGO is conditional on 50% of the voting rights of Beijing Digital being held by Zhuhai Huafa and concert parties at the first close.</p>
<p>Beijing Digital is PRC incorporated and a such, there are no rights to compulsory acquire shares, no matter how many shares are tendered into the Offer. Nevertheless, it is not Zhuhai Huafa's intention to delist Beijing Digital.</p>
<p>Beijing Digital's shares gained 65% in the month of January, ahead of the <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0201/2021012901785.pdf" target="_blank" rel="noopener">suspension</a> on shares before trading on 1 February. Shares are down 11% as I type.</p>
<p>As always, more below the fold. </p>

Zhuhai Huafa, wholly-owned by Zhuhai SASAC, has entered into a share purchase agreement (SPA) to acquire domestic shares in mobile device manufacturer Beijing Digital Telecom (6188 HK) from Di Er Tong and Digital Science &amp; Technology, collectively the controlling shareholders of Beijing Digital.
Following the completion of the SPA and the entering into a concert party agreement, Zhuhai Huafa and concert parties would hold 37.99%, triggering a mandatory general offer (MGO). The Offer price will be HK$3.8429 per H-Share, a premium of 7.04% to last close. A concurrent Offer of RM3.2030/share will be made for the domestic shares.
The SPA is conditional on, inter alia, SASAC and NDRC approval, together with miscellaneous conditions such as the entering into of loan and concert party agreements. SASAC approval has already been obtained.
The MGO is conditional on 50% of the voting rights of Beijing Digital being held by Zhuhai Huafa and concert parties at the first close.
Beijing Digital is PRC incorporated and a such, there are no rights to compulsory acquire shares, no matter how many shares are tendered into the Offer. Nevertheless, it is not Zhuhai Huafa's intention to delist Beijing Digital.
Beijing Digital's shares gained 65% in the month of January, ahead of the suspension on shares before trading on 1 February. Shares are down 11% as I type.
As always, more below the fold. 

Beijing Digital (6188 HK): Possible Offer From Zhuhai SASAC

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<p data-v-da61000a="" data-v-294dc056="">This update is the latest in a series dating back to <a href="https://skr.ma/c7hcH" target="_blank" rel="noopener">L<em>egend's Conversion of Domestic Shares</em></a> in June 2018.</p>
<p data-v-da61000a="" data-v-294dc056="">To date, 20 companies have sought approval to convert their domestic shares into H shares, which would then be eligible to be listed and traded on Hong Kong's stock exchange.</p>
<p data-v-da61000a="" data-v-294dc056="">13 companies have now been given CSRC and Hong Kong listing approval to convert such shares. Only two of those have seen any noticeable movement in the converted shares.</p>
<p data-v-da61000a="" data-v-294dc056="">In the past four months, two companies have <em>withdrawn</em> their application to convert their domestic shares, citing further improvement in the rules and regulations of the domestic capital market, among other factors.  </p>
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<p data-v-da61000a="" data-v-294dc056="">As always, more below the fold. </p>
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This update is the latest in a series dating back to Legend's Conversion of Domestic Shares in June 2018.
To date, 20 companies have sought approval to convert their domestic shares into H shares, which would then be eligible to be listed and traded on Hong Kong's stock exchange.
13 companies have now been given CSRC and Hong Kong listing approval to convert such shares. Only two of those have seen any noticeable movement in the converted shares.
In the past four months, two companies have withdrawn their application to convert their domestic shares, citing further improvement in the rules and regulations of the domestic capital market, among other factors.  


As always, more below the fold. 


Full Circulation Of H-Shares: January 2021 Update

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<p data-v-da61000a="" data-v-294dc056="">This update is the latest in a series dating back to <em><a href="https://skr.ma/c7hcH" target="_blank" rel="noopener">Legend's Conversion of Domestic Shares</a></em> in June 2018, with the most recent addition <em><a href="https://skr.ma/kJWeU" target="_blank" rel="noopener">CPPCC And Full Circulation Of H-Shares</a></em> speculating the 2020 National People's Congress and Chinese People's Political Consultative may provide guidance on the "<em>full circulation of H shares</em>", which would allow the conversion of domestic shares into H shares, which would then be eligible to be listed and traded on Hong Kong's stock exchange.</p>
<p data-v-da61000a="" data-v-294dc056="">Since that insight, another 6 companies have been given the green light to convert and/or have submitted applications to covert.</p>
<p data-v-da61000a="" data-v-294dc056="">There has also been one noticeable movement in one of the initial pilot companies to have converted domestic shares.</p>
<p data-v-da61000a="" data-v-294dc056="">As always, more below the fold. </p>
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This update is the latest in a series dating back to Legend's Conversion of Domestic Shares in June 2018, with the most recent addition CPPCC And Full Circulation Of H-Shares speculating the 2020 National People's Congress and Chinese People's Political Consultative may provide guidance on the "full circulation of H shares", which would allow the conversion of domestic shares into H shares, which would then be eligible to be listed and traded on Hong Kong's stock exchange.
Since that insight, another 6 companies have been given the green light to convert and/or have submitted applications to covert.
There has also been one noticeable movement in one of the initial pilot companies to have converted domestic shares.
As always, more below the fold. 






Full Circulation Of H-Shares - July Update

China

Beijing Digital Telecom is a Chinese company primarily engaged in the sales of mobile communication equipment and accessories, along with providing related services. It also offers value-added software services, personalized mobile phone services, after-sales support, and has diversified into sales of vehicles and photovoltaic equipment. The company was founded in 2001 and is headquartered in Beijing, China.

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Beijing Digital Telecom (6188 HK)

Last Week in Event SPACE: Intouch, Toshiba, Orocobre/Galaxy, Tilt, Primewest/Centuria, Huarong

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

Beijing Digital (6188 HK): Zhuhai SASAC's MGO On Track

The Offer price appears fair, with respect to historical trading multiples, and optically. I see a gross/annualised spread of 3%/34.2%. I'd be...

David Blennerhassett

Beijing Digital (6188 HK): Possible Offer From Zhuhai SASAC

The Offer price appears fair, with respect to historical trading multiples. I see a gross/annualised spread of 15.4%/55.8%, assuming completion...

David Blennerhassett

Full Circulation Of H-Shares: January 2021 Update

To date, 20 companies have sought approval to convert their domestic shares into H shares, 13 of which have now been given CSRC and Hong Kong...

David Blennerhassett

Full Circulation Of H-Shares - July Update

This update is the latest in a series dating back to Legend's Conversion of Domestic Shares in June 2018, with the most recent addition CPPCC And...

David Blennerhassett

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