Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>There are currently 46 - mostly firm - transactions currently being discussed and analysed on Smartkarma.</li>
<li>Three new deals were discussed this week: <a href="https://www.smartkarma.com/entities/charter-hall-group" target="_blank" data-smartkarma-citation="entities:5593:1" rel="noopener">Charter Hall (CHC AU)</a> for <a href="https://www.smartkarma.com/entities/irongate-group" target="_blank" data-smartkarma-citation="entities:30897:1" rel="noopener">Irongate (IAP AU)</a>; <a href="https://www.smartkarma.com/entities/daifuku-co-ltd" target="_blank" data-smartkarma-citation="entities:10408:1" rel="noopener">Daifuku (6383 JP)</a> for <a href="https://www.smartkarma.com/entities/contec-co-ltd" target="_blank" data-smartkarma-citation="entities:16711:1" rel="noopener">Contec Co (6639 JP)</a>; Hinode for <a href="https://www.smartkarma.com/entities/at-group-co-ltd" target="_blank" data-smartkarma-citation="entities:4391:1" rel="noopener">At Group Co (8293 JP)</a>.
</li>
<li>Keys updates took place for: <a href="https://www.smartkarma.com/entities/virtus-health-ltd" target="_blank" data-smartkarma-citation="entities:14776:1" rel="noopener">Virtus Health (VRT AU)</a>, <a href="https://www.smartkarma.com/entities/icar-asia-ltd" target="_blank" data-smartkarma-citation="entities:17682:1" rel="noopener">iCar Asia (ICQ AU)</a>, <a href="https://www.smartkarma.com/entities/aventus-group" target="_blank" data-smartkarma-citation="entities:25897:1" rel="noopener">Aventus Group (AVN AU)</a>,<a href="https://www.smartkarma.com/entities/sydney-airport" target="_blank" data-smartkarma-citation="entities:19063:1" rel="noopener">Sydney Airport (SYD AU)</a>, and <a href="https://www.smartkarma.com/entities/china-logistics-property-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:22799:1" rel="noopener">China Logistics Property Holdings (1589 HK)</a> 
</li>
</ul>


There are currently 46 - mostly firm - transactions currently being discussed and analysed on Smartkarma.
Three new deals were discussed this week: Charter Hall (CHC AU) for Irongate (IAP AU); Daifuku (6383 JP) for Contec Co (6639 JP); Hinode for At Group Co (8293 JP).

Keys updates took place for: Virtus Health (VRT AU), iCar Asia (ICQ AU), Aventus Group (AVN AU),Sydney Airport (SYD AU), and China Logistics Property Holdings (1589 HK) 



Asia-Pac Weekly Risk Arb Summary: Irongate, Virtus, ICar Asia, Aventus, Sydney Airport, CLPH

<ul>
<li>
<a href="https://www.smartkarma.com/entities/irongate-group" target="_blank" data-smartkarma-citation="entities:30897:1" rel="noopener">Irongate (IAP AU)</a> has <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02480691_PS-2A1353504?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">announced</a> a non-binding proposal from <a href="https://www.smartkarma.com/entities/charter-hall-group" target="_blank" data-smartkarma-citation="entities:5593:1" rel="noopener">Charter Hall (CHC AU)</a> and Dutch pension fund PGGM at $1.90/security, by way of a Scheme, plus a possible $0.0467/security distribution.</li>
<li>Importantly, the proposal contains a call option over 360 Capital’s 19.9% security holding in IAP.</li>
<li>IAP is considering the Offer. Expect the board to grant due diligence.  This proposal is a 10.5% premium to 360 Capital's Offer, before taking into account the distribution. </li>
</ul>



Irongate (IAP AU) has announced a non-binding proposal from Charter Hall (CHC AU) and Dutch pension fund PGGM at $1.90/security, by way of a Scheme, plus a possible $0.0467/security distribution.
Importantly, the proposal contains a call option over 360 Capital’s 19.9% security holding in IAP.
IAP is considering the Offer. Expect the board to grant due diligence.  This proposal is a 10.5% premium to 360 Capital's Offer, before taking into account the distribution. 


Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

<ul>
<li>
<a href="https://www.smartkarma.com/entities/charter-hall-group" target="_blank" data-smartkarma-citation="entities:5593:1" rel="noopener">Charter Hall (CHC AU)</a> has come over the top to bid A$1.9/stapled security for <a href="https://www.smartkarma.com/entities/irongate-group" target="_blank" data-smartkarma-citation="entities:30897:1" rel="noopener">Irongate Group (IAP AU)</a>. That's 10.5% higher than the last bid from <a href="https://www.smartkarma.com/entities/360-capital-group-ltd" target="_blank" data-smartkarma-citation="entities:11865:1" rel="noopener">360 Capital (TGP AU)</a>. </li>
<li>
<a href="https://www.smartkarma.com/entities/charter-hall-group" target="_blank" data-smartkarma-citation="entities:5593:1" rel="noopener">Charter Hall (CHC AU)</a> have also signed an MOU with <a href="https://www.smartkarma.com/entities/360-capital-group-ltd" target="_blank" data-smartkarma-citation="entities:11865:1" rel="noopener">360 Capital (TGP AU)</a> that takes 360 Capital out of any bidding war.</li>
<li>At a 23.4% premium to pro forma NTA, we think the <a href="https://www.smartkarma.com/entities/irongate-group" target="_blank" data-smartkarma-citation="entities:30897:1" rel="noopener">Irongate Group (IAP AU)</a> Board will give the partnership due diligence access and the deal should complete.</li>
</ul>



Charter Hall (CHC AU) has come over the top to bid A$1.9/stapled security for Irongate Group (IAP AU). That's 10.5% higher than the last bid from 360 Capital (TGP AU). 

Charter Hall (CHC AU) have also signed an MOU with 360 Capital (TGP AU) that takes 360 Capital out of any bidding war.
At a 23.4% premium to pro forma NTA, we think the Irongate Group (IAP AU) Board will give the partnership due diligence access and the deal should complete.


Charter Hall (CHC AU)'s Offer for Irongate Group (IAP AU)

Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Index Rebalance

<ul>
<li>The S&amp;P/ASX Index family is a widely-tracked group of indices and sub-indices which represent the performance of ASX-listed companies. </li>
<li>In March 2022, Index rebalance events will take place for the S&amp;P/ASX capitalization-weighted indices including ASX 300, ASX 200, ASX 100, ASX 50, and ASX 20. </li>
<li>In this insight, we take a look at the leading candidates who could become Adds/Deletes during the March 2022 Rebalance and other potential intra-quarterly changes.</li>
</ul>


The S&amp;P/ASX Index family is a widely-tracked group of indices and sub-indices which represent the performance of ASX-listed companies. 
In March 2022, Index rebalance events will take place for the S&amp;P/ASX capitalization-weighted indices including ASX 300, ASX 200, ASX 100, ASX 50, and ASX 20. 
In this insight, we take a look at the leading candidates who could become Adds/Deletes during the March 2022 Rebalance and other potential intra-quarterly changes.


S&P/​ASX Indices: Quiddity Leaderboard for March 2022 Rebalance

In July 2021, Australia's largest freehold pub properties owner <a href="https://www.smartkarma.com/entities/ale-property-group" target="_blank" data-smartkarma-citation="entities:7484:1" rel="noopener">Ale Property (LEP AU)</a> ("ALE") received an "unsolicited, confidential, conditional, non-binding indicative proposal" from the Charter Hall Consortium (a consortium managed by <a href="https://www.smartkarma.com/entities/charter-hall-group" target="_blank" data-smartkarma-citation="entities:5593:1" rel="noopener">Charter Hall (CHC AU)</a> comprising <a href="https://www.smartkarma.com/entities/charter-hall-long-wale-reit" target="_blank" data-smartkarma-citation="entities:24076:1" rel="noopener">Charter Hall Long Wale Reit (CLW AU)</a> ("CLW") and superannuation fund Hostplus). The Independent Board Committee established by ALE's Board assessed the proposal and decided to grant the Charter Hall Consortium a period of due diligence.A couple of months later, on 20th September 2021, ALE announced they had entered into a Scheme Implementation Deed with the Charter Hall Consortium. Based on this agreement, ALE securityholders will have the default option of accepting 0.4080 CLW securities and cash of A$3.673 as consideration per ALE security or they can choose between an all-scrip consideration of 1.1546 CLW securities/ALE Security and an all-cash consideration of A$5.681 cash/ALE security. On top of that, ALE securityholders will also be entitled to receive ALE's September quarter distribution of A$0.055/ALE security. More below the fold. <hr>For more information about M&amp;A rules, regulations, and practices in Australia, please refer to <a href="https://www.smartkarma.com/insights/quiddity-australia-m-a-guide-2019" target="_blank" data-smartkarma-citation="insights:30118" rel="noopener">Quiddity Australia M&amp;A Guide 2019</a> and <a href="https://www.smartkarma.com/insights/quiddity-m-a-australia-foreign-investment-reforms" target="_blank" data-smartkarma-citation="insights:40210" rel="noopener">Quiddity M&amp;A: Australia Foreign Investment Reforms</a>

In July 2021, Australia's largest freehold pub properties owner Ale Property (LEP AU) ("ALE") received an "unsolicited, confidential, conditional, non-binding indicative proposal" from the Charter Hall Consortium (a consortium managed by Charter Hall (CHC AU) comprising Charter Hall Long Wale Reit (CLW AU) ("CLW") and superannuation fund Hostplus). The Independent Board Committee established by ALE's Board assessed the proposal and decided to grant the Charter Hall Consortium a period of due diligence.A couple of months later, on 20th September 2021, ALE announced they had entered into a Scheme Implementation Deed with the Charter Hall Consortium. Based on this agreement, ALE securityholders will have the default option of accepting 0.4080 CLW securities and cash of A$3.673 as consideration per ALE security or they can choose between an all-scrip consideration of 1.1546 CLW securities/ALE Security and an all-cash consideration of A$5.681 cash/ALE security. On top of that, ALE securityholders will also be entitled to receive ALE's September quarter distribution of A$0.055/ALE security. More below the fold. For more information about M&amp;A rules, regulations, and practices in Australia, please refer to Quiddity Australia M&amp;A Guide 2019 and Quiddity M&amp;A: Australia Foreign Investment Reforms 

ALE-Charter Hall: A Post-Lockdown Bet on Australian Pubs

Australia

Charter Hall Group invests in and develops real estate.  The Company manages real estate investment funds and develops commercial, residential, and industrial properties.

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Charter Hall (CHC AU)

Asia-Pac Weekly Risk Arb Summary: Irongate, Virtus, ICar Asia, Aventus, Sydney Airport, CLPH

This insight provides a summary of gross/annualised spreads (on deals discussed on Smartkarma) across Asia-Pacific as at the last trading date, and...

David Blennerhassett

Irongate: Charter Hall Stakes Its Claim

Though still indicative, this proposal, with 360 Capital's support, appears all stitched up. Currently trading at a gross/annualised spread of 3%...

David Blennerhassett