IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

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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

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<li>
<a href="https://www.smartkarma.com/entities/dickson-concepts-intl-ltd" target="_blank" data-smartkarma-citation="entities:5052:1" rel="noopener">Dickson Concepts Intl (113 HK)</a> disclosed a Bermuda scheme offer from the controlling shareholder (Sir Poon) at HK$7.20, a 50.6% premium to the last close price.  </li>
<li>The offer is final. While the offer represents an all-time high and is attractive compared to historical trading ranges, it is below net cash. </li>
<li>No disinterested shareholder holds a blocking stake, and retail seems supportive (lowering the risk of the headcount test). The offer, while light, will likely succeed.  </li>
</ul>



Dickson Concepts Intl (113 HK) disclosed a Bermuda scheme offer from the controlling shareholder (Sir Poon) at HK$7.20, a 50.6% premium to the last close price.  
The offer is final. While the offer represents an all-time high and is attractive compared to historical trading ranges, it is below net cash. 
No disinterested shareholder holds a blocking stake, and retail seems supportive (lowering the risk of the headcount test). The offer, while light, will likely succeed.  


Dickson Concepts (113 HK): Sir Poon’s Scheme Offer Below Net Cash

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

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<li>
<a href="https://www.smartkarma.com/entities/dickson-concepts-intl-ltd" target="_blank" data-smartkarma-citation="entities:5052:1" rel="noopener">Dickson Concepts (113 HK)</a> (DC)'s Chairman, Dickson Poon (&amp; relatives), holding 61.98%, have tabled an Offer by way of a Scheme for shares not held, at <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2025/0429/2025042902456.pdf" target="_blank" rel="noopener">HK$7.20/share (best &amp; final)</a>.</li>
<li>That compares to DC's net cash (as at 30 Sept 2024) of HK$7.44/share. Plus financial assets comprise an additional ~HK$2.16/share. </li>
<li>The IFA will cite liquidity and DC's historical discount to NAV, and opine "reasonable", and perhaps even "fair". It is neither. Minorities should vote this down. But probably won't ...</li>
</ul>



Dickson Concepts (113 HK) (DC)'s Chairman, Dickson Poon (&amp; relatives), holding 61.98%, have tabled an Offer by way of a Scheme for shares not held, at HK$7.20/share (best &amp; final).
That compares to DC's net cash (as at 30 Sept 2024) of HK$7.44/share. Plus financial assets comprise an additional ~HK$2.16/share. 
The IFA will cite liquidity and DC's historical discount to NAV, and opine "reasonable", and perhaps even "fair". It is neither. Minorities should vote this down. But probably won't ...


Poon's Underpriced Takeover. Minorities Deserve Better

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<li>
<a href="https://www.smartkarma.com/entities/dickson-concepts-intl-ltd" target="_blank" data-smartkarma-citation="entities:5052:1" rel="noopener">Dickson Concepts Intl (113 HK)</a> has entered a trading halt “pending the release of an announcement pursuant to The Code on Takeovers and Mergers, which constitutes inside information of the Company.”  </li>
<li>The controlling shareholder (Sir Poon) is likely seeking to launch a privatisation through a Bermuda scheme, particularly as the shares trade below net cash.</li>
<li>While no disinterested shareholder holds a blocking stake, the headcount test and a decent AGM participation rate necessitate an attractive offer. The potential offer price range is HK$5.60-9.24.</li>
</ul>



Dickson Concepts Intl (113 HK) has entered a trading halt “pending the release of an announcement pursuant to The Code on Takeovers and Mergers, which constitutes inside information of the Company.”  
The controlling shareholder (Sir Poon) is likely seeking to launch a privatisation through a Bermuda scheme, particularly as the shares trade below net cash.
While no disinterested shareholder holds a blocking stake, the headcount test and a decent AGM participation rate necessitate an attractive offer. The potential offer price range is HK$5.60-9.24.


Dickson Concepts (113 HK): Controlling Shareholder to Privatise a Negative EV Play?

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<li>
<a href="https://www.smartkarma.com/entities/dickson-concepts-intl-ltd" target="_blank" data-smartkarma-citation="entities:5052:1" rel="noopener">Dickson Concepts Intl (113 HK)</a> (DC), which is principally engaged in the sale of luxury goods business, is suspended pursuant to the Takeovers Code.</li>
<li>DC's Chairman, Dickson Poon (&amp; spouse), hold 60.5%. Super-net-cash rich DC is trading in sync with historical metrics. 1H25 (Mar Y/E) net profit dropped 40.1%. Shares are roughly flat yoy. </li>
<li>Given DC's cash hoard, taking the company private makes sense. I doubt Poon is seeking to exit his stake.</li>
</ul>



Dickson Concepts Intl (113 HK) (DC), which is principally engaged in the sale of luxury goods business, is suspended pursuant to the Takeovers Code.
DC's Chairman, Dickson Poon (&amp; spouse), hold 60.5%. Super-net-cash rich DC is trading in sync with historical metrics. 1H25 (Mar Y/E) net profit dropped 40.1%. Shares are roughly flat yoy. 
Given DC's cash hoard, taking the company private makes sense. I doubt Poon is seeking to exit his stake.


Poon Moves On Dickson Concepts (113 HK)'s Cash Hoard?

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<li>
<a href="https://www.smartkarma.com/entities/taishin-financial-holding" target="_blank" data-smartkarma-citation="entities:715:1" rel="noopener">Taishin Financial (2887 TT)</a> is cheap to peers. <a href="https://www.smartkarma.com/entities/shin-kong-financial-holding" target="_blank" data-smartkarma-citation="entities:15351:1" rel="noopener">Shin Kong Financial (2888 TT)</a> is cheap vs Taishin. Long Shin Kong. Long Taishin vs Peers. Long Shin Kong vs Taishin Peers.</li>
<li>Abu Dhabi makes a big, bold bet on <a href="https://www.smartkarma.com/entities/santos-ltd" target="_blank" data-smartkarma-citation="entities:711:1" rel="noopener">Santos Ltd (STO AU)</a>. However FIRB will have the last word on whether the deal goes through. </li>
<li>If the results show NTT owns &gt;80% of <a href="https://www.smartkarma.com/entities/ntt-data-corp" target="_blank" data-smartkarma-citation="entities:11232:1" rel="noopener">NTT Data (9613 JP)</a>, buy a lot for a potential squeeze. If the results show NTT owns 68-70%, you can probably ignore. </li>
</ul>



Taishin Financial (2887 TT) is cheap to peers. Shin Kong Financial (2888 TT) is cheap vs Taishin. Long Shin Kong. Long Taishin vs Peers. Long Shin Kong vs Taishin Peers.
Abu Dhabi makes a big, bold bet on Santos Ltd (STO AU). However FIRB will have the last word on whether the deal goes through. 
If the results show NTT owns &gt;80% of NTT Data (9613 JP), buy a lot for a potential squeeze. If the results show NTT owns 68-70%, you can probably ignore. 


Last Week in Event SPACE: Shin Kong/Taishin, Santos, NTT Data, ENN Energy, Mitsui Matsushima

Hong Kong

Dickson Concepts (International) Limited, through its subsidiaries, sells watches and fashion products.  The Company also trades luxury goods, and provides management and technical services.

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Dickson Concepts Intl (113 HK)

Dickson Concepts (113 HK): Sir Poon’s Scheme Offer Below Net Cash

The offer, while light, will likely succeed. No disinterested shareholder holds a blocking stake, and retail seems supportive (lowering the risk of...

Arun George

Poon's Underpriced Takeover. Minorities Deserve Better

A consistently profitable company, taken out below net cash: yes, this is being done too cheap. If illiquid arbs are your bag, and you're quietly...

David Blennerhassett

Dickson Concepts (113 HK): Controlling Shareholder to Privatise a Negative EV Play?

While no disinterested shareholder holds a blocking stake, the headcount test and a decent AGM participation rate necessitate an attractive offer....

Arun George

Poon Moves On Dickson Concepts (113 HK)'s Cash Hoard?

DC's Chairman, Dickson Poon (& spouse), hold 60.5%. Given DC’s net cash hoard - HK$7.44/share - taking the company private makes sense.

David Blennerhassett

Last Week in Event SPACE: Shin Kong/Taishin, Santos, NTT Data, ENN Energy, Mitsui Matsushima

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

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