IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/org-technology-co-ltd-a" target="_blank" rel="noopener">ORG Technology Co., Ltd. A (002701 CH)</a>’s offer for <a href="https://www.smartkarma.com/entities/cpmc-holdings-ltd" target="_blank" rel="noopener">CPMC Holdings (906 HK)</a> has one remaining precondition: SAFE approval.</li>
<li>Mr Wei’s irrevocable was terminated. Nevertheless, as a seller, he will accept the offer, as the shares trade below the offer price, and there is no competing offer. </li>
<li>The precondition long stop date is 6 January, sufficient time to satisfy the precondition. It would be highly unusual to secure MOFCOM and NDRC approval but not SAFE approval.</li>
</ul>



ORG Technology Co., Ltd. A (002701 CH)’s offer for CPMC Holdings (906 HK) has one remaining precondition: SAFE approval.
Mr Wei’s irrevocable was terminated. Nevertheless, as a seller, he will accept the offer, as the shares trade below the offer price, and there is no competing offer. 
The precondition long stop date is 6 January, sufficient time to satisfy the precondition. It would be highly unusual to secure MOFCOM and NDRC approval but not SAFE approval.


CPMC Holdings (906 HK): Steady Nerves Required

<ul>
<li>The monthly update notes further progress made by <a href="https://www.smartkarma.com/entities/org-technology-co-ltd-a" target="_blank" data-smartkarma-citation="entities:17510:1" rel="noopener">ORG Technology Co., Ltd. A (002701 CH)</a> in satisfying the precondition for its HK$7.21 voluntary offer for <a href="https://www.smartkarma.com/entities/cpmc-holdings-ltd" target="_blank" data-smartkarma-citation="entities:10427:1" rel="noopener">CPMC Holdings (906 HK)</a>. </li>
<li>The remaining preconditions (ORG shareholder and NDRC/SAFE approval) are low-risk. Including irrevocable, ORG represents 46.45% of outstanding shares within reach of the 50% minimum acceptance condition. </li>
<li>The two event risks (irrevocable termination date, precondition long stop date) should not derail the deal. At the last close, the gross spread was 4.9%. </li>
</ul>


The monthly update notes further progress made by ORG Technology Co., Ltd. A (002701 CH) in satisfying the precondition for its HK$7.21 voluntary offer for CPMC Holdings (906 HK). 
The remaining preconditions (ORG shareholder and NDRC/SAFE approval) are low-risk. Including irrevocable, ORG represents 46.45% of outstanding shares within reach of the 50% minimum acceptance condition. 
The two event risks (irrevocable termination date, precondition long stop date) should not derail the deal. At the last close, the gross spread was 4.9%. 


CPMC Holdings (906 HK): ORG Inching Towards the Launch of the Offer

<ul>
<li>
<a href="https://www.smartkarma.com/entities/org-technology-co-ltd-a" target="_blank" data-smartkarma-citation="entities:17510:1" rel="noopener">ORG Technology Co., Ltd. A (002701 CH)</a> has received SAMR clearance, the key regulatory hurdle, for its HK$7.21 voluntary offer for <a href="https://www.smartkarma.com/entities/cpmc-holdings-ltd" target="_blank" data-smartkarma-citation="entities:10427:1" rel="noopener">CPMC Holdings (906 HK)</a>.</li>
<li>SAMR approval paves the way for the ORG precondition to be satisfied in September. Changping Industrial’s HK$6.87 offer first close is on 3 September.</li>
<li>Changping Industrial has little choice but to revise its terms. It has a short window to seize the initiative by bumping its offer before ORG’s competing and higher offer opens. </li>
</ul>



ORG Technology Co., Ltd. A (002701 CH) has received SAMR clearance, the key regulatory hurdle, for its HK$7.21 voluntary offer for CPMC Holdings (906 HK).
SAMR approval paves the way for the ORG precondition to be satisfied in September. Changping Industrial’s HK$6.87 offer first close is on 3 September.
Changping Industrial has little choice but to revise its terms. It has a short window to seize the initiative by bumping its offer before ORG’s competing and higher offer opens. 


CPMC Holdings (906 HK): The Battle Is Heating up as ORG Clears a Key Regulatory Hurdle

<ul>
<li>The <a href="https://www.smartkarma.com/entities/cpmc-holdings-ltd" target="_blank" data-smartkarma-citation="entities:10427:1" rel="noopener">CPMC Holdings (906 HK)</a> Board recommends that shareholders accept Changping Industrial’s HK$6.87 offer, which the IFA opines is fair and reasonable.</li>
<li>The Board's carefully crafted and suitably caveated recommendation acknowledges that shares continue to trade through terms and <a href="https://www.smartkarma.com/entities/org-technology-co-ltd-a" target="_blank" data-smartkarma-citation="entities:17510:1" rel="noopener">ORG Technology Co., Ltd. A (002701 CH)</a>’s HK$7.21 offer is higher but preconditional. </li>
<li>Based on ORG's shareholding/irrevocable and volume traded above terms, Changping Industrial’s offer has little chance of success. It remains a question of when, not if, Changping Industrial will bump.</li>
</ul>


The CPMC Holdings (906 HK) Board recommends that shareholders accept Changping Industrial’s HK$6.87 offer, which the IFA opines is fair and reasonable.
The Board's carefully crafted and suitably caveated recommendation acknowledges that shares continue to trade through terms and ORG Technology Co., Ltd. A (002701 CH)’s HK$7.21 offer is higher but preconditional. 
Based on ORG's shareholding/irrevocable and volume traded above terms, Changping Industrial’s offer has little chance of success. It remains a question of when, not if, Changping Industrial will bump.


CPMC Holdings (906 HK): A Carefully Caveated Board Recommendation of Changping Industrial’s Offer

Quality-Value Investing

Marc Melendez, CFA

Emerging Market Small and Mid Cap Equities

Reperio Capital

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Equity Bottom-Up

China Aluminum Cans Holdings / Equity Bottom-Up

<p>In my recent <a href="https://www.smartkarma.com/insights/watchlist-alucon-pcl-an-operationally-efficient-packaging-company" target="_blank">report </a>on <a href="https://www.smartkarma.com/entities/4097" target="_blank" data-smartkarma-citation="entities:4097:1">Alucon Public Co Ltd (ALUCON TB)</a>, one of its competitors, <a href="https://www.smartkarma.com/entities/1456" target="_blank" data-smartkarma-citation="entities:1456:1">China Aluminum Cans Holdings Ltd (6898 HK)</a>, (CAC), piqued my interest due to its low multiples and knowledge of its industry. Currently, CAC trades on an EV/EBITDA of 3.6 times, an EV/EBIT of 4.6 times, and an EV/IC of 1.5 times. Unfortunately, due to corporate governance issues, the company deserves its low multiples.</p><p>CAC’s primary shareholder is Mr. Lin Wan Tsang (Mr. Lin), owning 74% of the company's shares. Mr…</p>

In my recent report on Alucon Public Co Ltd (ALUCON TB), one of its competitors, China Aluminum Cans Holdings Ltd (6898 HK), (CAC), piqued my interest due to its low multiples and knowledge of its industry. Currently, CAC trades on an EV/EBITDA of 3.6 times, an EV/EBIT of 4.6 times, and an EV/IC of 1.5 times. Unfortunately, due to corporate governance issues, the company deserves its low multiples.CAC’s primary shareholder is Mr. Lin Wan Tsang (Mr. Lin), owning 74% of the company's shares. Mr…

China Aluminum Can Holdings Comes with Corporate Governance Risks

Hong Kong

China Aluminum Cans Holdings Limited is a manufacturer of monobloc aluminum aerosol cans.

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China Aluminum Cans Holdings (6898 HK)

CPMC Holdings (906 HK): Steady Nerves Required

The irrevocable has terminated, and the precondition long stop date is approaching. This is not a good look, but the offer can still be completed....

Arun George

CPMC Holdings (906 HK): ORG Inching Towards the Launch of the Offer

The precondition is almost done as CPMC shareholder and NDRC approvals are secured. Only SAFE approval, which is a formality, is outstanding. This...

Arun George

CPMC Holdings (906 HK): The Battle Is Heating up as ORG Clears a Key Regulatory Hurdle

On the first closing date, Changping Industrial offer has let its offer lapse as acceptances (30.9% of out. shares) came well below the 50% minimum...

Arun George

CPMC Holdings (906 HK): A Carefully Caveated Board Recommendation of Changping Industrial’s Offer

Based on ORG's shareholding/irrevocable and volume traded above terms, Changping Industrial’s offer has little chance of success. It remains a...

Arun George

China Aluminum Can Holdings Comes with Corporate Governance Risks

In my recent report on Alucon Public Co Ltd (ALUCON TB), one of its competitors, China Aluminum Cans Holdings Ltd (6898 HK), (CAC), piqued my...

Reperio Capital

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