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

Shanghai Dongzheng Automotive Finance / Event-Driven

Shanghai Dongzheng Automotive Finance (DAF HK)

<ul>
<li>On 19 May, <a href="https://www.smartkarma.com/entities/saic-motor-corp-ltd-a" target="_blank" data-smartkarma-citation="entities:20833:1" rel="noopener">SAIC Motor (600104 CH)</a> emerged as the successful bidder for <a href="https://www.smartkarma.com/entities/china-zhengtong-auto-services" target="_blank" data-smartkarma-citation="entities:17001:1" rel="noopener">China Zhengtong Auto Services Hldg (1728 HK)</a>’s 71.04% stake in <a href="https://www.smartkarma.com/entities/shanghai-dongzheng-automotive-finance-co-ltd" target="_blank" data-smartkarma-citation="entities:27984:1" rel="noopener">Dongzheng Automotive Finance (2718 HK)</a>.</li>
<li>As SAIC will hold 30%+ of the voting rights, it will result in an MGO at a price not less than the auction price of HK$1.294 per H Share.</li>
<li>Dongzheng shares remain in a trading halt. The equity interest will transfer to SAIC and the MGO launched when the Shanghai Financial Court issues an auction sale judgment. </li>
</ul>


On 19 May, SAIC Motor (600104 CH) emerged as the successful bidder for China Zhengtong Auto Services Hldg (1728 HK)’s 71.04% stake in Dongzheng Automotive Finance (2718 HK).
As SAIC will hold 30%+ of the voting rights, it will result in an MGO at a price not less than the auction price of HK$1.294 per H Share.
Dongzheng shares remain in a trading halt. The equity interest will transfer to SAIC and the MGO launched when the Shanghai Financial Court issues an auction sale judgment. 


SAIC Wins the Auction for the 71.04% Stake in Dongzheng, MGO Upcoming

<ul>
<li>On 16 April, the Shanghai Financial Court <a href="https://paimai.jd.com/287421325" target="_blank" rel="noopener">published</a> the details for the auction of <a href="https://www.smartkarma.com/entities/china-zhengtong-auto-services" target="_blank" data-smartkarma-citation="entities:17001:1" rel="noopener">China Zhengtong Auto Services Hldg (1728 HK)</a>’s 71.04% stake in <a href="https://www.smartkarma.com/entities/shanghai-dongzheng-automotive-finance-co-ltd" target="_blank" data-smartkarma-citation="entities:27984:1" rel="noopener">Dongzheng Automotive Finance (2718 HK)</a>. </li>
<li>If the auction is successful and results in any person and a group of persons acting in concert holding 30%+ of the voting rights, it will result in an MGO.</li>
<li>The base bid implies an MGO price of HK$1.294 per H Share, a 112.1% premium to the last close. The auction will be held from 18 May to 19 May.</li>
</ul>


On 16 April, the Shanghai Financial Court published the details for the auction of China Zhengtong Auto Services Hldg (1728 HK)’s 71.04% stake in Dongzheng Automotive Finance (2718 HK). 
If the auction is successful and results in any person and a group of persons acting in concert holding 30%+ of the voting rights, it will result in an MGO.
The base bid implies an MGO price of HK$1.294 per H Share, a 112.1% premium to the last close. The auction will be held from 18 May to 19 May.


Auction of China ZhengTong’s Dongzheng Stake Set for 18 May; Potential MGO

Quality-first, Business-perspective, Long-term, Urbem (HK) Limited

Urbem Capital

Quality-first, Business-perspective, Long-term

Equity Bottom-Up

<ul data-v-2d66ea9f="">
<li data-v-2d66ea9f="">We like to regard managers of our (partially) owned companies as trusted partners, and therefore, look for owner-oriented stewards that treat shareholders fairly;</li>
<li data-v-2d66ea9f="">We present some easy-to-grasp gimmicks that can be leveraged to gauge this factor.</li>
</ul>


We like to regard managers of our (partially) owned companies as trusted partners, and therefore, look for owner-oriented stewards that treat shareholders fairly;
We present some easy-to-grasp gimmicks that can be leveraged to gauge this factor.


Some Easy-To-Grasp Gimmicks to Gauge Management Compensation

<ul>
<li>The share of BOTB has been hammered this year;</li>
<li>But was Mr. Market right to panic?</li>
<li>Through a deep dive into the company's business economics and valuation, I see a favorable risk-reward ratio for BOTB's long-term shareholders at this level.</li>
</ul>


The share of BOTB has been hammered this year;
But was Mr. Market right to panic?
Through a deep dive into the company's business economics and valuation, I see a favorable risk-reward ratio for BOTB's long-term shareholders at this level.


Best of the Best PLC: There Appears to Be Some Money Left on the Table

Silver Point

Thomas J. Monaco

Silver Point is a boutique research firm that focuses on the broader financial services sector, with a particular focus on troubled institutions globally. 

Asia Ex Japan

<ul>
<li>Shares of Assured Guaranty (AGO.US) should continue to outperform in 2020.</li>
<li>AGO should realize benefits of a full year of favorable rating agency investment portfolio capital charges, and the repurchase USD 500 mn shares stock at accretive levels.</li>
<li>Value creation strategy at BlueMountain is earnings accretive and additive to capital return.</li>
</ul>


Shares of Assured Guaranty (AGO.US) should continue to outperform in 2020.
AGO should realize benefits of a full year of favorable rating agency investment portfolio capital charges, and the repurchase USD 500 mn shares stock at accretive levels.
Value creation strategy at BlueMountain is earnings accretive and additive to capital return.


Assured Guaranty – It Keeps Getting Better

United States

Credit Acceptance Corporation provides funding, receivables management, collection, sales training, and related services to automobile dealers.  The Company provides indirect financing for buyers with limited access to traditional sources of consumer credit.  Credit Acceptance operates in the United States.

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Credit Acceptance (CACC US)

SAIC Wins the Auction for the 71.04% Stake in Dongzheng, MGO Upcoming

SAIC, the successful bidder, will hold 30%+ of the voting rights, requiring an MGO at a price not less than the auction price of HK$1.294. Shares...

Arun George

Auction of China ZhengTong’s Dongzheng Stake Set for 18 May; Potential MGO

The auction of China Zhengtong’s 71.04% stake in Dongzheng will be held from 18 to 19 May. A successful auction will imply an MGO price (at the...

Arun George

Some Easy-To-Grasp Gimmicks to Gauge Management Compensation

Additionally, here are two US-listed mid-cap companies we have been following to illustrate both sides of the management pay matter.

Urbem Capital

Best of the Best PLC: There Appears to Be Some Money Left on the Table

Asset-light, scalable, cash-rich operations, prudent capital allocation, and a depressed share price can mean a favorable risk-reward ratio for...

Urbem Capital

Assured Guaranty – It Keeps Getting Better

Shares of Assured Guaranty (AGO.US) should continue to outperform in 2020. AGO should realize benefits of a full year of favorable rating agency...

Thomas J. Monaco

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