Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>My conversation with the FA earlier this week largely put to rest a number of concerns, specifically on regulatory approvals, surrounding the 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>As announced on the 13th December, the last pre-condition, SAFE, has been <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/1213/2024121301235.pdf" target="_blank" rel="noopener">satisfied</a>. All pre-cons have been fulfilled.  The Offer Doc will be dispatched on or before the 20th December</li>
<li>This could turn unconditional before year-end, depending on whether Zhang Wei promptly tenders. Expect the share price to trade tight (er) to terms Monday morning.</li>
</ul>


My conversation with the FA earlier this week largely put to rest a number of concerns, specifically on regulatory approvals, surrounding the Offer for CPMC Holdings (906 HK). 
As announced on the 13th December, the last pre-condition, SAFE, has been satisfied. All pre-cons have been fulfilled.  The Offer Doc will be dispatched on or before the 20th December
This could turn unconditional before year-end, depending on whether Zhang Wei promptly tenders. Expect the share price to trade tight (er) to terms Monday morning.


CPMC (906 HK): Not A Shadow Of Doubt (!) As Pre-Cons Fulfilled

<ul>
<li>Back on the 29th August 2024, <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><a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0829/2024082902348.pdf" target="_blank" rel="noopener">announced</a>  <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> had secured SAMR approval.  Mofcom and NDRC approvals subsequently followed. </li>
<li>The pre-condition long stop date is the 6th January. SAFE is the outstanding pre-condition. Separately, Zhang Wei's 22.01% irrevocable expired on the 5th December - with no HKEx announcement.</li>
<li>Quite a lot to pack in with 16 business days to the pre-con long stop. Sounding out people involved with the transaction would be ideal.  So that's what I did. </li>
</ul>


Back on the 29th August 2024, CPMC Holdings (906 HK) announced  ORG Technology Co., Ltd. A (002701 CH) had secured SAMR approval.  Mofcom and NDRC approvals subsequently followed. 
The pre-condition long stop date is the 6th January. SAFE is the outstanding pre-condition. Separately, Zhang Wei's 22.01% irrevocable expired on the 5th December - with no HKEx announcement.
Quite a lot to pack in with 16 business days to the pre-con long stop. Sounding out people involved with the transaction would be ideal.  So that's what I did. 


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.

<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>
<a href="https://www.smartkarma.com/entities/vitasoy-intl-holdings-ltd" target="_blank" data-smartkarma-citation="entities:2807:1" rel="noopener">Vitasoy Intl Holdings (345 HK)</a>’s shares surged 19.5% on speculation that billionaire Philip Ng will launch a takeover offer due to recent share purchases.  </li>
<li>Philip Ng’s stakebuilding suggests three potential outcomes. The likely near-term outcome is that he continues to nudge up his stake and potentially seek Board representation.</li>
<li>Without the Lo family's support, a scheme privatisation is impossible. While a voluntary conditional offer is possible, it isn't very likely, as Vitasoy’s valuation looked frothy at the last close.  </li>
</ul>



Vitasoy Intl Holdings (345 HK)’s shares surged 19.5% on speculation that billionaire Philip Ng will launch a takeover offer due to recent share purchases.  
Philip Ng’s stakebuilding suggests three potential outcomes. The likely near-term outcome is that he continues to nudge up his stake and potentially seek Board representation.
Without the Lo family's support, a scheme privatisation is impossible. While a voluntary conditional offer is possible, it isn't very likely, as Vitasoy’s valuation looked frothy at the last close.  


Vitasoy (345 HK): Take Profits as Takeover Speculation Mounts

<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

Hong Kong

China Foods Limited, through its subsidiaries, operates food processing businesses.  The Company processes and refines edible oil and fats, produces confectionery products, wine and beverage as well as flour including wheat and other grain products.  In addition, China Foods Limited trades food products.

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China Foods Ltd (506 HK)

CPMC (906 HK): Not A Shadow Of Doubt (!) As Pre-Cons Fulfilled

Awesome news to see the pre-cons satisfied. Expect Canvest and Henlius to also narrow into terms. If this turns unco on the first closing date,...

David Blennerhassett

CPMC (906 HK): Why This Is Still A Buy

Never any doubt! The last pre-con - SAFE - has been satisfied. All pre-cons have now been fulfilled. Offer Doc to be dispatched on or before the...

David Blennerhassett

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

Vitasoy (345 HK): Take Profits as Takeover Speculation Mounts

Without the Lo family's support, a scheme privatisation is impossible. While a voluntary conditional offer is possible, it isn't very likely, as...

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

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