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<ul>
  <li>
<a href="https://smartkarma.com/entities/cei-limited">CEI</a> is a contract manufacturer specializing in high-mix, low-volume production for diverse industrial sectors, including medical, semiconductor, and aerospace. This niche focus fosters strong, long-term customer relationships.</li>
  <li>The company was acquired by AEM Holdings in 2021 and delisted from the Singapore Exchange. This integration provides <a href="https://smartkarma.com/entities/cei-limited">CEI</a> with greater financial stability and strategic alignment, while offering AEM crucial upstream vertical integration for its testing and handling solutions.</li>
  <li>Financial performance prior to acquisition showed a trend of declining revenue and net income, reflecting the competitive and cyclical nature of the electronics manufacturing services industry. Future growth is now intrinsically linked to the strategy and success of its parent company, AEM.</li>
</ul><p><em>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.</em></p>


  
CEI is a contract manufacturer specializing in high-mix, low-volume production for diverse industrial sectors, including medical, semiconductor, and aerospace. This niche focus fosters strong, long-term customer relationships.
  The company was acquired by AEM Holdings in 2021 and delisted from the Singapore Exchange. This integration provides CEI with greater financial stability and strategic alignment, while offering AEM crucial upstream vertical integration for its testing and handling solutions.
  Financial performance prior to acquisition showed a trend of declining revenue and net income, reflecting the competitive and cyclical nature of the electronics manufacturing services industry. Future growth is now intrinsically linked to the strategy and success of its parent company, AEM.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven


For the month of May, 11 new deals were discussed on Smartkarma with an overall announced deal size of ~US$7.3bn.



Clicking on the company name in the table below will take you to the entity page where you can read the initial insight(s) written by Smartkarma contributors on these new deals and follow-up discussions, or simply click on the insight link(s) below the name.







New Deals


Industry


Size (US$bn)


Type


Premium




Australia




APN Property Group (APD AU) 
Property
0.2
Scheme
50%


APN Prop (APD AU): Dexus' Done Deal



Boral Ltd (BLD AU) 
Construction
4.8
Off-market
Nil


Boral Ltd (BLD AU): Seven's Nil Premium



Japara Healthcare (JHC AU) 
Healthcare
0.2
Scheme
30%


Japara Healthcare (JHC AU): Here Comes The Calvary


 



Hong Kong




Chong Hing Bank (1111 HK) 
Banking
0.2
Scheme
51.2%



Chong Hing Bank (1111 HK): Takeover Talk As Shares Pop
Chong Hing Bank (1111 HK): Yue Xiu's Offer Is Light



 



Japan




Aomori Bank (8342 JP) / Michinoku Bank (8350 JP) 
Bank
0.6
Merger



Aomori Bank &amp; Michinoku Bank Merger - Nothing To Write Home About Yet



EPS Holdings (4282 JP) 
Data/software
0.1
Tender Offer
35.5%


Another Too-Cheap MBO as Founder Takes Out EPS


 Locoguide (4497 JP) / Kufu (4399 JP)

Real estate
0.4
Merger



Locoguide (4497 JP) - Kufu (4399 JP): Merger Is a Done Deal



Maruka Machinery (7594 JP) / Furusato Industries (8087 JP) 
Trading
0.4
Merger



A Complex SmallCap Merger in Japan: Maruka (7594) And Furusato (8087)



Secom Joshinetsu (4342 JP) 
Security
0.3
Tender Offer
66.2%


Secom To Finally Buy Out Affiliate Secom Joshinetsu (4342)








Malaysia




Can-One Bhd (CAN MK) 
Manufacturing
0.1
MTO
15.8%


Can-One (CAN MK)? Yeoh Can Lah!



IHH Healthcare (IHH MK) 
Healthcare
N/A
N/A
N/A


IHH Healthcare (IHH MK): More Medicine For Mitsui?


Source: Smartkarma Insights






The above does not include BetMakers Technology Group (BET AU) lobbing a non-binding offer of A$4bn (A$1bn cash, $3bn scrip into BET) for Tabcorp Ltd (TAH AU)'s wagering and media division, and Apollo's prior tilt - Tabcorp (TAH AU): Apollo Shows Its Hand.

Nor does the table include the rumoured merger between  Angang Steel Co Ltd (H) (347 HK) and Bengang Steel (000761 CH) - Amalgamated Steel: Merging Angang &amp; Bengang As, Bs, and Hs.



The average premium for the new deals announced (or first discussed) in May was ~41%, with a year-to-date average of ~31% (78 deals). This compares to the average premium for all deals in 2020 (158 deals) and 2019 (145 deals) of 31% and 31.5% respectively. 




Summary of News in May of Arb Situations On Smartkarma's Radar



(Again, click on the company names to take to you to the insights and/or discussion posts for a more comprehensive read-through on each situation)






Australia


Comments (with links to announcements &amp; insights)




3P Learning (3PL AU) 

No May update




Bingo Industries (BIN AU) 

1-May: Capital Group announced it has sold its entire 9.7% stake in Bingo Industries (BIN AU).




Crown Resorts (CWN AU) 

10-May: Crown Resorts: Blackstone &amp; Star Place Their Bets
17-May: Crown Says Blackstone's Bid Is Light. Undecided On Star
20-May: Crown Resorts Ltd: Blackstone Offer Rejected, Star Offer May Still Not Reflect True Forward Value




Galaxy Resources (GXY AU) 

No May update




Link Administration Holdings (LNK AU) 

27-May: Link Group (LNK AU): KKR Opens The Bidding For PEXA
31-May: Link Admin (LNK AU) Goes IPO Route For PEXA Afterall




Mainstream Group Holdings Ltd (MAI AU) 

2-May: Mainstream (MAI AU): More-Than-Double in Less than 2 Months After Apex Bump
6-May: Mainstream (MAI AU): Bidding War Continues as SS&amp;C Overbids for the 4th Time
14-May: Mainstream (MAI AU): +120% in ~2 Months but Bidding War Continues....




McPherson's Ltd (MCP AU) 

No May update




Mortgage Choice (MOC AU) 

26-Mau FIRB gives its approval



Primewest Group Ltd (PWG AU)

14-May: Target's Statement and Bidder's Statements were published. Primewest Group Ltd (PWG AU)'s Board has unanimously recommended shareholders to accept the Offer. 




Think Childcare (TNK AU) 

12-May: Think Childcare (TNK AU) has agreed to extend the Exclusivity Period with Busy Bees to 31st May 2021 (vs. original deadline of 14th May). This is still a non-binding deal with an expected completion date to be in 1Q CY22. 




Vitalharvest Freehold Trust (VTH AU) 

1-May: And so it goes - MAFM bumps its Offer for Vitalharvest Freehold Trust (VTH AU) to $1.26.
7-May: MAFM exercises a call option and acquires 16.2% of Vitalharvest Freehold Trust (VTH AU).
28-May Roc bumps its Offer for Vitalharvest Freehold Trust (VTH AU) to $1.29/share.  And says it will overbid any MAFM counter! 




Vocus Communications (VOC AU) 

10-May: Vocus Comms (VOC AU): MIRA/Aware's Done Deal
19-May: Vocus Comms (VOC AU): MIRA/​Aware’s Scheme Doc Despatched. EGM On 22 June










Hong Kong


Comments (with links to announcements &amp; insights)




Beijing Digital Telecom (6188 HK) 

1-May: Beijing Digital (6188 HK): Offer Now Open. IFA Says Fair
20-May: Beijing Digital Telecom (6188 HK)'s MGO is now unconditional in all respects. 




China Machinery Engineering (1829 HK) 

28-May: China Machinery Engineering (1829 HK): Movement In The Works?




China Traditional Chinese Medicine (570 HK) 

7-May: In its monthly update regarding a potential Offer, China Traditional Chinese Medicine (570 HK) says there is no update.




China Youzan Limited (8083 HK) 

10-May: China Youzan (8083 HK): Reality Check As Shares Rollover




Kerry Logistics Network (636 HK) 

4-May: Kerry Logistics Network (636 HK) will hold an EGM on the 26 May for shareholders to vote on the sale of the Hong Kong and Taiwan warehouse businesses to Kerry Holdings. 
26-May: At its SGM, Kerry Logistics Network (636 HK) shareholders overwhelmingly approved the sale of its Hong Kong, Taiwan warehouse business to Kerry Holdings.




New Century REIT (1275 HK) 

No May update




Rivera Holdings (281 HK) 

No April update




Sichuan Languang Justbon Service Group (2606 HK) 

3-May: Languang Justbon (2606 HK): Offer Now Open - For Up To Four Months










India


Comments (with links to insights)




Mphasis Ltd (MPHL IN) 

4-May: The Detailed Public Statement on Mphasis Ltd (MPHL IN) has been released. The Open Offer is scheduled tentatively to run from 18 June to 1 July, which means it is running Very Tight and the option is worth a bit less than I expected. But that just means there is more gamma. One could get big at the high Rs 1600s area. 




Vedanta Ltd (VEDL IN) 

4-May: Vedanta Now Caught Up With Peers - A Different Skew Ahead










Japan


Comments (with links to announcements &amp; insights)




BeNEXT Group (2154 JP) 
No May update



Cocokara Fine (3098 JP) 
No May update



Fuji Kosan Company (5009 JP) 
17-May:  Fuji Kosan Company (5009 JP) has responded to Aslead Strategic Value Fund's Tender Offer with its initial Target Opinion Statement which is "Opinion Withheld." This is because Fuji Kosan hasn't actually done anything yet - two weeks in. They have sent questions to Aslead, and Aslead has five business days to respond. This is slow-walking it. This tender offer is likely to be extended because of that.



Hitachi Metals (5486 JP) 

5-May: Hitachi Metals - Should I Stay or Should I Go Now?




Honshu Chemical Industry (4115 JP) 

13-May: Honshu Chemical (4115) Shareholders Perhaps One Day From a Wrong Price Takeover
16-May:: Honshu Chemical Shareholders Get the Short End of the Stick As The Board Is Ex-Gourd




Invesco Office J Reit (3298 JP) 

6-May:  Invesco Office OPPOSES Starwood Hostile Offer and Gets a Distinctly Beige Knight
11-May:  Starwood Bumps Terms, Lowers Threshold on Invesco Office
13-May:  Invesco Office's Terrible, Horrible, No Good Very Bad Day... Changes Things
20-May:  Invesco Office's Beige Knight (Deemed Dirty Gray By Markets) Suddenly Looks Brighter and Whiter
23-May:  Starwood Responds to Invesco Office's White Knight Proposal
24-May: Starwood has extended their Tender Offer on Invesco Office J Reit (3298 JP) from the 24th of May to 15th of June after the close of the 24th. They did not raise the price. This is basically the equivalent of Starwood calling Invesco's bluff. They can extend again if they want but they are going to make Invesco come out. They can change price later if they think it necessary.



Japan Asia (3751 JP)
No May update



Sawada Holdings (8699 JP) 

9-May:  Sawada Selldown Was NOT Done - Shareholder Structure Looks Different Now
23-May: Sawada Is A Different Stock Now
31-May:  Be Careful of Expectations on Sawada (8699)




Toshiba Corp (6502 JP) 

14-May: Toshiba – Shareholder Returns Trump Weak Guidance
17-May: Toshiba Results &amp; Shareholder Return - Possibly Big Impact Buyback Coming











New Zealand


Comments 




Tilt Renewables Ltd (TLT NZ) 

No May update











Singapore


Comments (with links to announcements)




Procurri Corporation (PROC SP) 

3-May: The Partial Offer has not become unconditional in all respects on the Closing Date and has therefore lapsed










Thailand


Comments




Intouch Holdings (INTUCH TB) 

No May update




Vinythai Public Co (VNT TB) 

No May update






Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

<p>On 11th January 2021, Singapore-based electronic components manufacturer <a href="https://www.smartkarma.com/entities/cei-limited" target="_blank" data-smartkarma-citation="entities:16816:1" rel="noopener">CEI Limited (CEI SP)</a> received a <a href="https://links.sgx.com/FileOpen/Pre-Conditional%20Offer%20Announcement.ashx?App=Announcement&amp;FileID=644825" target="_blank" rel="noopener">Pre-conditional Voluntary Offer</a> from a wholly-owned subsidiary of <a href="https://www.smartkarma.com/entities/aem-holdings-ltd" target="_blank" data-smartkarma-citation="entities:11019:1" rel="noopener">AEM Holdings (AEM SP)</a> valuing the company at S$100mn.</p><p>The making of the Offer was subject to the satisfaction of the pre-condition which required approval-in-principle of the SGX-ST for the listing and quotation of the New AEM Holdings Shares. </p><p>Today, AEM <a href="https://links.sgx.com/FileOpen/AEM%20Holdings%20-%20AIP%20Announcement%2015%20Feb%202021.ashx?App=Announcement&amp;FileID=648282" target="_blank" rel="noopener">confirmed</a> that the pre-condition has been satisfied. </p><div><p>Below is a look at what this means to the Deal Timeline and how the various cash and scrip alternatives compare against each other. </p></div><p></p><hr><div><div><div class="content-remarks"><p>For more information about M&amp;A rules, regulations, and practices in Singapore, please refer to <a href="https://www.smartkarma.com/insights/quiddity-singapore-m-a-guide-2019" target="_blank" data-smartkarma-citation="insights:28849" rel="noopener">Quiddity Singapore M&amp;A Guide 2019</a> </p></div></div></div>

On 11th January 2021, Singapore-based electronic components manufacturer CEI Limited (CEI SP) received a Pre-conditional Voluntary Offer from a wholly-owned subsidiary of AEM Holdings (AEM SP) valuing the company at S$100mn.The making of the Offer was subject to the satisfaction of the pre-condition which required approval-in-principle of the SGX-ST for the listing and quotation of the New AEM Holdings Shares. Today, AEM confirmed that the pre-condition has been satisfied. Below is a look at what this means to the Deal Timeline and how the various cash and scrip alternatives compare against each other. For more information about M&amp;A rules, regulations, and practices in Singapore, please refer to Quiddity Singapore M&amp;A Guide 2019 

AEM's Privatization Deal for CEI Limited (CEI SP): Pre-Condition Satisfied

<p>After market-close on Monday 11th January, Singapore-based electronic components manufacturer <a href="https://www.smartkarma.com/entities/cei-limited" target="_blank" data-smartkarma-citation="entities:16816:1" rel="noopener">CEI Limited (CEI SP)</a> received a <a href="https://links.sgx.com/FileOpen/Pre-Conditional%20Offer%20Announcement.ashx?App=Announcement&amp;FileID=644825" target="_blank" rel="noopener">Pre-conditional Voluntary Offer</a> from a wholly-owned subsidiary of <a href="https://www.smartkarma.com/entities/aem-holdings-ltd" target="_blank" data-smartkarma-citation="entities:11019:1" rel="noopener">AEM Holdings (AEM SP)</a> valuing the company at S$100mn. </p><p>The Offer Price will be S$1.15/share and there will be a all-cash option (default choice) and two other cash and scrip combinations from which CEI shareholders will be allowed to choose. </p><p>The making of the Offer will be subject to the satisfaction of the pre-condition which requires approval-in-principle of the SGX-ST for the listing and quotation of the New AEM Holdings Shares. </p><p><em>More below the fold. </em></p><p></p><hr><div class="content-remarks"><p>For more information about M&amp;A rules, regulations, and practices in Singapore, please refer to <a href="https://www.smartkarma.com/insights/quiddity-singapore-m-a-guide-2019" target="_blank" data-smartkarma-citation="insights:28849" rel="noopener">Quiddity Singapore M&amp;A Guide 2019</a> </p></div>

After market-close on Monday 11th January, Singapore-based electronic components manufacturer CEI Limited (CEI SP) received a Pre-conditional Voluntary Offer from a wholly-owned subsidiary of AEM Holdings (AEM SP) valuing the company at S$100mn. The Offer Price will be S$1.15/share and there will be a all-cash option (default choice) and two other cash and scrip combinations from which CEI shareholders will be allowed to choose. The making of the Offer will be subject to the satisfaction of the pre-condition which requires approval-in-principle of the SGX-ST for the listing and quotation of the New AEM Holdings Shares. More below the fold. For more information about M&amp;A rules, regulations, and practices in Singapore, please refer to Quiddity Singapore M&amp;A Guide 2019 

CEI Limited (CEI SP): Privatization Deal by AEM Holdings (AEM SP) Trading with a View to Complete

<p>After gaining 22.5% over seven trading days back in mid-September, <strong><a href="https://www.smartkarma.com/entities/11743" target="_blank" data-smartkarma-citation="entities:11743:1">Pci Ltd (PCI SP)</a> </strong><a href="https://links.sgx.com/FileOpen/Announcement.18Sep18.ashx?App=Announcement&amp;FileID=525504" target="_blank">responded</a> to an SGX query over this price action that "<em>it has been approached by a third party in connection with a potential transaction in relation to the securities of the Company. The discussions are on-going ...</em>".</p>
<p>All was revealed on 4th January 2019, when PCI <a href="https://links.sgx.com/FileOpen/Pagani.Joint%20Announcement.FinalReleaseVersion.4Jan2019.ashx?App=Announcement&amp;FileID=539535" target="_blank">announced</a> that Pagani Holding  (a SPV indirectly owned by Platinum Equity Advisors) had made a S$1.33/share cash offer for the company by way of a scheme.</p>
<p><strong><a href="https://www.smartkarma.com/entities/13010" target="_blank" data-smartkarma-citation="entities:13010:1">Chuan Hup Holdings (CH SP)</a></strong>, which holds 76.7% in PCI, has given an irrevocable undertaking to vote its stake in favour of the scheme resolution, and to reject or vote against any competing offers. PCI's executive chairman, Peh Kwee Chim, is Chuan Hup's majority owner. </p>
<p>The price presents a ~18% premium to the last close, but a 49% premium to the "undisturbed" price back in early September and a 60% premium over the 12-month VWAP. The Offer values PCI at US$195mn.</p>
<p>With the 75%-for scheme condition satisfied and a lifetime-high takeover price, this is a done deal, and is duly reflected in the gross/annualised spread of 2.3%/6.8%, assuming mid-May completion.</p>

After gaining 22.5% over seven trading days back in mid-September, Pci Ltd (PCI SP) responded to an SGX query over this price action that "it has been approached by a third party in connection with a potential transaction in relation to the securities of the Company. The discussions are on-going ...".
All was revealed on 4th January 2019, when PCI announced that Pagani Holding  (a SPV indirectly owned by Platinum Equity Advisors) had made a S$1.33/share cash offer for the company by way of a scheme.
Chuan Hup Holdings (CH SP), which holds 76.7% in PCI, has given an irrevocable undertaking to vote its stake in favour of the scheme resolution, and to reject or vote against any competing offers. PCI's executive chairman, Peh Kwee Chim, is Chuan Hup's majority owner. 
The price presents a ~18% premium to the last close, but a 49% premium to the "undisturbed" price back in early September and a 60% premium over the 12-month VWAP. The Offer values PCI at US$195mn.
With the 75%-for scheme condition satisfied and a lifetime-high takeover price, this is a done deal, and is duly reflected in the gross/annualised spread of 2.3%/6.8%, assuming mid-May completion.

Singapore

CEI Limited provides contract manufacturing services, including printed circuit board and box-build assembly, equipment design, and cable harness assembly. The company also offers value-added services such as materials management and precision machined components, and designs and manufactures equipment for the semiconductor industry. It was founded in 1980 and is headquartered in Singapore.

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CEI (CEI SP)

Primer: CEI (CEI SP) - Aug 2026

CEI is a contract manufacturer specializing in high-mix, low-volume production for diverse industrial sectors, including medical,...

αSK Primers

(Mostly) Asia M&A: May 2021 Roundup

The average premium for the new deals announced (or first discussed) in May was ~41%, with a year-to-date average of ~31% (78 deals).

David Blennerhassett

AEM's Privatization Deal for CEI Limited (CEI SP): Pre-Condition Satisfied

CEI AEM deal pre-condition satisfied. Now it is only the minimum acceptance condition of 50%. This deal should complete as-is and with the 70/30...

Janaghan Jeyakumar, CFA

CEI Limited (CEI SP): Privatization Deal by AEM Holdings (AEM SP) Trading with a View to Complete

Small Takeover in Singapore. Interesting combination of possible Consideration payments. Full cash, part cash part scrip, less cash more scrip....

Janaghan Jeyakumar, CFA

PCI Ltd - All Over Before It Starts

After gaining 22.5% over seven trading days back in mid-September, Pci Ltd (PCI SP) responded to an SGX query over this price action that "it has...

David Blennerhassett

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