Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Auto components play <a href="https://www.smartkarma.com/entities/beijingwest-industries-interna" target="_blank" data-smartkarma-citation="entities:13118:1" rel="noopener">BeijingWest Industries (2339 HK)</a> is suspended pursuant to the Hong Kong Code on Takeovers and Mergers.</li>
<li>BeijingWest hasn't returned a profit since FY19. Following a major restructuring (equity + CB) announced last November, primarily to shore up finances, the share price is up an eye-watering ~320%</li>
<li>A big part of that euphoric price rise was controlling shareholder SOE-backed BWI Beijing backstopping the restructuring. But a privatisation tilt here at ~5x P/B? Unlikely. </li>
</ul>


Auto components play BeijingWest Industries (2339 HK) is suspended pursuant to the Hong Kong Code on Takeovers and Mergers.
BeijingWest hasn't returned a profit since FY19. Following a major restructuring (equity + CB) announced last November, primarily to shore up finances, the share price is up an eye-watering ~320%
A big part of that euphoric price rise was controlling shareholder SOE-backed BWI Beijing backstopping the restructuring. But a privatisation tilt here at ~5x P/B? Unlikely. 


BeijingWest Industries (2339 HK): Halted Pursuant To Takeover's Code

<ul>
<li>I tally 23 - mostly firm, mostly Asia-Pac - arb transactions currently being discussed and analysed on Smartkarma. Those arbs metrics and upcoming events are detailed below.</li>
<li>One new deal was discussed on Smartkarma this week: <a href="https://www.smartkarma.com/entities/global-ltd-the" target="_blank" data-smartkarma-citation="entities:9672:1" rel="noopener">Global (3271 JP)</a>. Both <a href="https://www.smartkarma.com/entities/ronzgun-international-holdings" target="_blank" data-smartkarma-citation="entities:40082:1" rel="noopener">Rongzun (1780 HK)</a> and <a href="https://www.smartkarma.com/entities/beijingwest-industries-interna" target="_blank" data-smartkarma-citation="entities:13118:1" rel="noopener">BeijingWest Industries (2339 HK)</a> are suspended pursuant to the Hong Kong Takever's Code.</li>
<li>Key updates/news also took place on: <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>, <a href="https://www.smartkarma.com/entities/national-storage-reit" target="_blank" data-smartkarma-citation="entities:13762:1" rel="noopener">National Storage REIT (NSR AU)</a>, <a href="https://www.smartkarma.com/entities/bright-smart-securities-commodities-group" target="_blank" data-smartkarma-citation="entities:20511:1" rel="noopener">Bright Smart Securities (1428 HK)</a>, <a href="https://www.smartkarma.com/entities/mcj-co-ltd" target="_blank" data-smartkarma-citation="entities:14132:1" rel="noopener">MCJ (6670 JP)</a>, and <a href="https://www.smartkarma.com/entities/takara-bio-inc" target="_blank" data-smartkarma-citation="entities:10766:1" rel="noopener">Takara Bio Inc (4974 JP)</a>.</li>
</ul>


I tally 23 - mostly firm, mostly Asia-Pac - arb transactions currently being discussed and analysed on Smartkarma. Those arbs metrics and upcoming events are detailed below.
One new deal was discussed on Smartkarma this week: Global (3271 JP). Both Rongzun (1780 HK) and BeijingWest Industries (2339 HK) are suspended pursuant to the Hong Kong Takever's Code.
Key updates/news also took place on: Insignia Financial (IFL AU), National Storage REIT (NSR AU), Bright Smart Securities (1428 HK), MCJ (6670 JP), and Takara Bio Inc (4974 JP).


Asia-Pac M&A Weekly Wrap: The Global, Insignia Financial, National Storage REIT, MCJ, Takara Bio

<ul>
<li>There's little left in <a href="https://www.smartkarma.com/entities/sankei-real-estate-inc" target="_blank" data-smartkarma-citation="entities:35239:1" rel="noopener">Sankei Real Estate (2972 JP)</a> if Murakami-san is the sole blocker, as it gets done with him in the back end OR a big bump.</li>
<li>
<a href="https://www.smartkarma.com/entities/wh-group-ltd" target="_blank" data-smartkarma-citation="entities:13200:1" rel="noopener">WH Group (288 HK)</a> is trading around its highest implied stub, post <a href="https://www.smartkarma.com/entities/smithfield-foods-inc" target="_blank" data-smartkarma-citation="entities:44251:1" rel="noopener">Smithfield Foods (SFD US)</a>'s spin-off. Forward growth drivers are more evident in Smithfield and <a href="https://www.smartkarma.com/entities/henan-shuanghui-investment-development" target="_blank" data-smartkarma-citation="entities:20515:1" rel="noopener">Henan Shuanghui (000895 CH)</a>.</li>
<li>For CSRC to pushback on <a href="https://www.smartkarma.com/entities/enn-energy-holdings-ltd" target="_blank" data-smartkarma-citation="entities:316:1" rel="noopener">ENN Energy (2688 HK)</a>, it would need to clearly articulate, clear friction points surrounding the deal structure and/or systematic A-share market risks. Neither appears apparent.</li>
</ul>


There's little left in Sankei Real Estate (2972 JP) if Murakami-san is the sole blocker, as it gets done with him in the back end OR a big bump.

WH Group (288 HK) is trading around its highest implied stub, post Smithfield Foods (SFD US)'s spin-off. Forward growth drivers are more evident in Smithfield and Henan Shuanghui (000895 CH).
For CSRC to pushback on ENN Energy (2688 HK), it would need to clearly articulate, clear friction points surrounding the deal structure and/or systematic A-share market risks. Neither appears apparent.


Last Week In Event SPACE: Sankei Real Estate, WH Group, ENN Energy, Tekscend Photomask

Hong Kong

BeijingWest Industries International Limited is an investment holding company primarily engaged in the manufacture, sale, and trading of automotive parts and components, focusing on automotive suspension products for passenger vehicles. The company also provides research and technical services. It was incorporated in 2001 and is headquartered in Wan Chai, Hong Kong.

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BeijingWest Industries (2339 HK)