Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

China Logistics Property Holdings / Event-Driven

China Logistics Property Holdings (1589 HK)

<div>
On the 9 June, <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> (CLPH) <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0609/2021060900007.pdf" target="_blank" rel="noopener">announced</a> a placement of 220mn new shares at a placing price of $3.54/share, an 18.24% discount to last close. 
</div>
<div>
Given the market anticipated a possible change of control after CLPH <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/1229/2020122901322.pdf" target="_blank" rel="noopener">announced</a> on the 29 December 2020 Li Shifa (chairman, holding ~28.2%) and RRJ Capital (~23.35%), were "conducting a preliminary strategic review of their stakes", the market response was swift. Shares closed down ~20% at HK$3.45.
That seemed like an overly harsh knee-jerk reaction given a post-money book value of ~HK$3.90. 
Yesterday CLPH announced it had completed the <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0617/2021061701380.pdf" target="_blank" rel="noopener">placement</a>. What is interesting is that <a href="https://www.smartkarma.com/entities/jd-com-inc" target="_blank" data-smartkarma-citation="entities:29043:1" rel="noopener">JD.com Inc. (9618 HK)</a> bumped its stake to 10.11%, on a fully diluted basis, from 9.87% (pre-placement), the result of which sees CLPH in breach of Hong Kong's public float.
Evidently, JD.com is still keen to increase its stake. And perhaps take a dig at the company for the placement.
Separately, Li and RRJ didn't participate in the placement. But I think they remain sellers.
CLPH remains attractive here. 
</div>
<div>
More below the fold.
</div>


On the 9 June, China Logistics Property Holdings (1589 HK) (CLPH) announced a placement of 220mn new shares at a placing price of $3.54/share, an 18.24% discount to last close. 


Given the market anticipated a possible change of control after CLPH announced on the 29 December 2020 Li Shifa (chairman, holding ~28.2%) and RRJ Capital (~23.35%), were "conducting a preliminary strategic review of their stakes", the market response was swift. Shares closed down ~20% at HK$3.45.
That seemed like an overly harsh knee-jerk reaction given a post-money book value of ~HK$3.90. 
Yesterday CLPH announced it had completed the placement. What is interesting is that JD.com Inc. (9618 HK) bumped its stake to 10.11%, on a fully diluted basis, from 9.87% (pre-placement), the result of which sees CLPH in breach of Hong Kong's public float.
Evidently, JD.com is still keen to increase its stake. And perhaps take a dig at the company for the placement.
Separately, Li and RRJ didn't participate in the placement. But I think they remain sellers.
CLPH remains attractive here. 


More below the fold.


CLPH (1589 HK): Free Float Breached As JD.com Bumps Stake

<div>
Back on the 29 December <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> (CLPH) <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/1229/2020122901322.pdf" target="_blank" rel="noopener">announced</a> its two largest shareholders - Li Shifa (chairman, holding ~28.2%) and RRJ Capital (~23.35%) - are "conducting a preliminary strategic review of their stakes in the Company, which involves up to approximately 51.5% shareholding of the Company." 
Reportedly the two key shareholders were seeking an exit price of ~$4.70, which is roughly equivalent to a four-year high. If a deal was struck, this would trigger an unconditional mandatory general offer.
This possible Offer was discussed in <a href="https://skr.ma/QiiCi" target="_blank" rel="noopener">China Logistics (1589 HK): Possible Offer As Major Shareholders Seek Exit</a>. 
Then nothing - not even an update pursuant to Rule 3.7 of the Takeovers Code.
Now CLPH has <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0609/2021060900007.pdf" target="_blank" rel="noopener">announced</a> a placement of 220mn new shares (6.67% of shares out, 6.33% on a diluted basis) at a placing price of $3.54/share, an 18.24% discount to last close. Net proceeds are expected to total HK$767mn to new land acquisition and the development and construction of warehousing facilities.
The question is whether Li and RRJ are still in the mix to exit, or whether this placement is mutually exclusive to their end-game?
My initial takeaway is the latter. But shares have been cremated in this morning's trading session.
More below the fold.
</div>
<div>

</div>


Back on the 29 December China Logistics Property Holdings (1589 HK) (CLPH) announced its two largest shareholders - Li Shifa (chairman, holding ~28.2%) and RRJ Capital (~23.35%) - are "conducting a preliminary strategic review of their stakes in the Company, which involves up to approximately 51.5% shareholding of the Company." 
Reportedly the two key shareholders were seeking an exit price of ~$4.70, which is roughly equivalent to a four-year high. If a deal was struck, this would trigger an unconditional mandatory general offer.
This possible Offer was discussed in China Logistics (1589 HK): Possible Offer As Major Shareholders Seek Exit. 
Then nothing - not even an update pursuant to Rule 3.7 of the Takeovers Code.
Now CLPH has announced a placement of 220mn new shares (6.67% of shares out, 6.33% on a diluted basis) at a placing price of $3.54/share, an 18.24% discount to last close. Net proceeds are expected to total HK$767mn to new land acquisition and the development and construction of warehousing facilities.
The question is whether Li and RRJ are still in the mix to exit, or whether this placement is mutually exclusive to their end-game?
My initial takeaway is the latter. But shares have been cremated in this morning's trading session.
More below the fold.





CLPH (1589 HK): No-Deal Or Business As Usual Following Placement?

Senior Credit Analyst, Lucror Analytics

Leonard Law, CFA

Senior Credit Analyst

High Yield Experts

Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

Credit

In this month’s "In-Focus" section, we provide an update on Chinese developers’ JV exposure, including typical structures and the JV exposure of the companies under our coverage. The Asia Monthly focuses on providing updates on recent events, information on new issues and spread movements, as well as summarising our top picks, and discussing specific areas of interest in the "In-Focus" section. The Asia Monthly is intended to broaden investors' understanding of the Asian USD high-yield market.

   In this month’s "In-Focus" section, we provide an update on Chinese developers’ JV exposure, including typical structures and the JV exposure of the companies under our coverage.    The Asia Monthly focuses on providing updates on recent events, information on new issues and spread movements, as well as summarising our top picks, and discussing specific areas of interest in the "In-Focus" section. The Asia Monthly is intended to broaden investors' understanding of the Asian USD high-yield market. 

Asia HY Monthly - Chinese Developers' JV Exposure - Lucror Analytics

The Asia HY Trade Book for the month of May includes a summary of our recommendations, as well as our high-conviction ideas. The report also features relative-value charts and lists of the bonds in the Lucror Asia HY index.

   The Asia HY Trade Book for the month of May includes a summary of our recommendations, as well as our high-conviction ideas. The report also features relative-value charts and lists of the bonds in the Lucror Asia HY index. 

Asia HY Trade Book - May 2021 - Lucror Analytics

In this month’s “In-Focus” section, we provide an update on the Oil & Gas sector, including oil price development and projections, along with the associated drivers.  The Asia Monthly focuses on providing updates on recent events, information on new issues and spread movements, as well as summarising our top picks, and discussing specific areas of interest in the “In-Focus” section. The Asia Monthly is intended to broaden investors' understanding of the Asian USD high-yield market.

  In this month’s “In-Focus” section, we provide an update on the Oil & Gas sector, including oil price development and projections, along with the associated drivers.    The Asia Monthly focuses on providing updates on recent events, information on new issues and spread movements, as well as summarising our top picks, and discussing specific areas of interest in the “In-Focus” section. The Asia Monthly is intended to broaden investors' understanding of the Asian USD high-yield market. 

Asia HY Monthly - Oil & Gas Update (2021) - Lucror Analytics

China

China Logistics Property Holdings is an investment holding company and a logistics facilities provider. It offers integrated solutions for the design, development, leasing, operation, and management of logistics infrastructure, primarily engaging in the leasing of storage facilities and related management services. The company was founded in 2000 and is headquartered in Shanghai, China.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

China Logistics Property Holdings (1589 HK)

CLPH (1589 HK): Free Float Breached As JD.com Bumps Stake

Shares have over-corrected: trading around the placement price; 9% below the level where CLPH was trading ahead of the news of Li/RRJ exploring an...

David Blennerhassett

CLPH (1589 HK): No-Deal Or Business As Usual Following Placement?

Shares look to have over-corrected in this mornings' trading. I'd get involved here - 1x CLPH's EV/portfolio (the book value of property, equity...

David Blennerhassett

Asia HY Monthly - Chinese Developers' JV Exposure - Lucror Analytics

In this month’s "In-Focus" section, we provide an update on Chinese developers’ JV exposure, including typical structures and the JV exposure of...

Lucror Analytics

Asia HY Trade Book - May 2021 - Lucror Analytics

The Asia HY Trade Book for the month of May includes a summary of our recommendations, as well as our high-conviction ideas. The report also...

Lucror Analytics

Asia HY Monthly - Oil & Gas Update (2021) - Lucror Analytics

In this month’s “In-Focus” section, we provide an update on the Oil & Gas sector, including oil price development and projections, along with...

Lucror Analytics

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)