Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Champion Alliance International Holdings Limited / Event-Driven

Champion Alliance International Holdings Limited

On 2 August, cigarette-packing manufacturer <a href="https://www.smartkarma.com/entities/27334" target="_blank" data-smartkarma-citation="entities:27334:1">Mengke Holdings Ltd (1629 HK)</a> announced that Happily Soar (a 56.25%-shareholder) and Liberal Rite (18.75%) - collectively holding 75% - <a href="http://www3.hkexnews.hk/listedco/listconews/SEHK/2018/0802/LTN20180802589.pdf" target="_blank">entered into a supplemental memorandum of understanding</a> with Champion Alliance (Offeror)/Million Success to sell their respective stakes.
SPAs were entered into on the 19 October and were <a href="http://www3.hkexnews.hk/listedco/listconews/SEHK/2018/1029/LTN201810291061.pdf" target="_blank">completed</a> on the 22 October. Immediately upon the completion, the Offeror/Million Success was obligated to make an unconditional mandatory offer under Rule 26.1 of the Takeovers Code. The Offer price is HK$1.42/share, cash, a 9.23% premium to last close. 
The Offer is unconditional in all respects. Any dividends declared or paid after the announcement will reduce the Offer price. The Offeror intends to maintain Mengke's listing.  
Optically, the offer price appears opportunistic, having recently recovered from an 18-month low. Yet, $1.42 backs out blue-sky metrics of 51x EV/EBITDA and 135x PER. 
The major shareholder and chairman is stubbing out. I would be inclined to follow.

On 2 August, cigarette-packing manufacturer Mengke Holdings Ltd (1629 HK) announced that Happily Soar (a 56.25%-shareholder) and Liberal Rite (18.75%) - collectively holding 75% - entered into a supplemental memorandum of understanding with Champion Alliance (Offeror)/Million Success to sell their respective stakes.
SPAs were entered into on the 19 October and were completed on the 22 October. Immediately upon the completion, the Offeror/Million Success was obligated to make an unconditional mandatory offer under Rule 26.1 of the Takeovers Code. The Offer price is HK$1.42/share, cash, a 9.23% premium to last close. 
The Offer is unconditional in all respects. Any dividends declared or paid after the announcement will reduce the Offer price. The Offeror intends to maintain Mengke's listing.  
Optically, the offer price appears opportunistic, having recently recovered from an 18-month low. Yet, $1.42 backs out blue-sky metrics of 51x EV/EBITDA and 135x PER. 
The major shareholder and chairman is stubbing out. I would be inclined to follow.

Running Out of Puff? Tender Into Mengke's Offer

China

Champion Alliance International Holdings Limited produces and sells cigarette packaging paper. The Company manufactures and sells transfer metallised paper, laminated metallised paper, and other products. Champion Alliance International Holdings markets its products throughout China.

Champion Alliance International Holdings Limited (1629 HK)

Running Out of Puff? Tender Into Mengke's Offer

On 2 August, cigarette-packing manufacturer Mengke Holdings Ltd (1629 HK) announced that Happily Soar (a 56.25%-shareholder) and Liberal Rite...

David Blennerhassett