Transport Sector, China and Asia-focused Research

Charles De Trenck

Thematic (Sector/Industry)

I recently had occasion to update my thinking on China, its massive waste generation in the last 10-15 years, and Chinese Communist Party members as major beneficiaries of this massive waste, and therefore also the continued need for Xi Jinping to keep cleaning up the more blatant instances of corruption and wealth transfer. The commodities boom of &lsquo;00s proved to be backed by a massive wave of over-production, waste and a social movement to self-enrichment by the privileged class of China. President Xi Jinping in many ways is now contributing to lower commodity prices as a byproduct of his crackdown. There is a twist, though. Not only does this piece make a link between Chinese Corruption and massive waste, but it also puts in its conclusions a couple of directional political Catch-22s President Xi may face.&nbsp;

I recently had occasion to update my thinking on China, its massive waste generation in the last 10-15 years, and Chinese Communist Party members as major beneficiaries of this massive waste, and therefore also the continued need for Xi Jinping to keep cleaning up the more blatant instances of corruption and wealth transfer. The commodities boom of &lsquo;00s proved to be backed by a massive wave of over-production, waste and a social movement to self-enrichment by the privileged class of China. President Xi Jinping in many ways is now contributing to lower commodity prices as a byproduct of his crackdown. There is a twist, though. Not only does this piece make a link between Chinese Corruption and massive waste, but it also puts in its conclusions a couple of directional political Catch-22s President Xi may face.&nbsp;

Implications and Fallout from Absolute Corruption of the Political Elite

Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

This post is a follow-up to discuss potential follow-on impacts of Hutchison Whampoa's restructuring on the Watson's retail segment. With a deal for O2 in the works, a Watson's listing or sale could be a source of permanent funding for this transaction. As an entity with its own currency, Watson's could accelerate its expansion program. The same is true if a retailer with global ambitions buys control.

This post is a follow-up to discuss potential follow-on impacts of Hutchison Whampoa's restructuring on the Watson's retail segment. With a deal for O2 in the works, a Watson's listing or sale could be a source of permanent funding for this transaction. As an entity with its own currency, Watson's could accelerate its expansion program. The same is true if a retailer with global ambitions buys control.

Hutchison Whampoa Restructuring: Next Move for Watson's? Part Two

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

Canvest Environmental Protection Group / Event-Driven

Canvest Environmental Protection Group (0XC SW)

<ul>
<li>
<a href="https://www.smartkarma.com/entities/canvest-environmental-protection-group-co-ltd" target="_blank" data-smartkarma-citation="entities:100:1" rel="noopener">Canvest Environmental Protection Group (1381 HK)</a>’s IFA opines that <a href="https://www.smartkarma.com/entities/grandblue-environment-co-a" target="_blank" data-smartkarma-citation="entities:17887:1" rel="noopener">Grandblue Environment Co A (600323 CH)</a>’s HK$4.90 offer is fair and reasonable. The vote is on 12 May. </li>
<li>Key conditions include approval by at least 75% of independent shareholders (&lt;10% of independent shareholders' rejection). Shareholders with blocking stakes will be supportive.</li>
<li>This is a done deal. At the last close and for a 10 June payment, the gross/annualised spread is 2.3%/18.3%. </li>
</ul>



Canvest Environmental Protection Group (1381 HK)’s IFA opines that Grandblue Environment Co A (600323 CH)’s HK$4.90 offer is fair and reasonable. The vote is on 12 May. 
Key conditions include approval by at least 75% of independent shareholders (&lt;10% of independent shareholders' rejection). Shareholders with blocking stakes will be supportive.
This is a done deal. At the last close and for a 10 June payment, the gross/annualised spread is 2.3%/18.3%. 


<ul>
<li>
<a href="https://www.smartkarma.com/entities/grandblue-environment-co-a" target="_blank" data-smartkarma-citation="entities:17887:1" rel="noopener">Grandblue Environment Co A (600323 CH)</a> has satisfied the precondition related to its privatisation offer for <a href="https://www.smartkarma.com/entities/canvest-environmental-protection-group-co-ltd" target="_blank" data-smartkarma-citation="entities:100:1" rel="noopener">Canvest Environmental Protection Group (1381 HK)</a>. </li>
<li>The offer remains attractive despite the re-rating of peers since announcing the deal. The vote risk is low as the two shareholders holding blocking stakes will be supportive. </li>
<li>This is a done deal. At the last close, the gross/annualised spread for a mid-June payment is 3.8%/13.0%. </li>
</ul>



Grandblue Environment Co A (600323 CH) has satisfied the precondition related to its privatisation offer for Canvest Environmental Protection Group (1381 HK). 
The offer remains attractive despite the re-rating of peers since announcing the deal. The vote risk is low as the two shareholders holding blocking stakes will be supportive. 
This is a done deal. At the last close, the gross/annualised spread for a mid-June payment is 3.8%/13.0%. 


Canvest (1381 HK): Precondition Satisfied

<ul>
<li>The regulatory precondition concerning <a href="https://www.smartkarma.com/entities/canvest-environmental-protection-group-co-ltd" target="_blank" data-smartkarma-citation="entities:100:1" rel="noopener">Canvest Environmental Protection Group (1381 HK)</a>’s privatisation offer from <a href="https://www.smartkarma.com/entities/grandblue-environment-co-a" target="_blank" data-smartkarma-citation="entities:17887:1" rel="noopener">Grandblue Environment Co A (600323 CH)</a> has been satisfied. </li>
<li>The sole remaining precondition concerns resolving loan guarantee issues. Canvest is taking steps to resolve these issues, and satisfying this precondition is low-risk. </li>
<li>Despite peers' re-rating, the offer remains attractive, and the vote is low-risk. At the last close, the gross/annualised spread was 4.5%/15.0% for a mid-June payment. </li>
</ul>


The regulatory precondition concerning Canvest Environmental Protection Group (1381 HK)’s privatisation offer from Grandblue Environment Co A (600323 CH) has been satisfied. 
The sole remaining precondition concerns resolving loan guarantee issues. Canvest is taking steps to resolve these issues, and satisfying this precondition is low-risk. 
Despite peers' re-rating, the offer remains attractive, and the vote is low-risk. At the last close, the gross/annualised spread was 4.5%/15.0% for a mid-June payment. 


Canvest (1381 HK): Regulatory Precondition Satisfied

Hong Kong

China Everbright Environment Group is a global leader in environmental protection, specializing in integrated environmental solutions. It is recognized as the world's largest waste-to-energy investor and operator, also providing waste management, water treatment, and renewable energy services. The company was founded in 1993 and is headquartered in Hong Kong.

China Everbright Environment Group (257 HK)

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China Everbright Environment Group (257 HK)

Implications and Fallout from Absolute Corruption of the Political Elite

I recently had occasion to update my thinking on China, its massive waste generation in the last 10-15 years, and Chinese Communist Party members...

Charles De Trenck

Hutchison Whampoa Restructuring: Next Move for Watson's? Part Two

This post is a follow-up to discuss potential follow-on impacts of Hutchison Whampoa's restructuring on the Watson's retail segment. With a deal...

Kemp Dolliver, CFA

Canvest (1381 HK): Scheme Vote on 12 May

This is a done deal as the vote is low-risk. At the last close and for a 10 June payment, the gross/annualised spread is 2.3%/18.3%.

Arun George

Canvest (1381 HK): Precondition Satisfied

Best Approach (concert party) and Shanghai Industrial/SIHL have agreed to amend the exchangeable bonds terms. This amendment allows Best Approach...

Arun George

Canvest (1381 HK): Regulatory Precondition Satisfied

Satisfying the remaining precondition is low risk. The offer remains attractive, and the vote is low-risk. At the last close, the gross/annualised...

Arun George

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