Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/pccw-ltd" target="_blank" data-smartkarma-citation="entities:873:1" rel="noopener"><strong>PCCW Ltd (8 HK)</strong></a> is coming up "cheap" on my monitor, both from a discount to NAV and implied stub angle. </li>
<li>Preceding my comments PCCW / <strong><a href="https://www.smartkarma.com/entities/hkt-ltd" target="_blank" data-smartkarma-citation="entities:874:1" rel="noopener">HKT Ltd (6823 HK)</a></strong><em> and </em><strong><a href="https://www.smartkarma.com/entities/bank-of-kyoto" target="_blank" data-smartkarma-citation="entities:5248:1" rel="noopener">Bank of Kyoto (8369 JP)</a></strong> are the current setup/unwind tables for Asia-Pacific Holdcos. </li>
<li>These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.</li>
</ul>



PCCW Ltd (8 HK) is coming up "cheap" on my monitor, both from a discount to NAV and implied stub angle. 
Preceding my comments PCCW / HKT Ltd (6823 HK) and Bank of Kyoto (8369 JP) are the current setup/unwind tables for Asia-Pacific Holdcos. 
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.


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/21-vianet-group-inc-adr" target="_blank" data-smartkarma-citation="entities:8489:1" rel="noopener">21Vianet Group (VNET US)</a> disclosed a privatisation proposal from the founder at US$8.20 per ADS, a 2.5% premium to The Hina Group/Industrial Bank’s offer of US$8.00 (disclosed on 11 April).</li>
<li>The data centre industry continues to be a hotbed for M&amp;A. <a href="https://www.bloomberg.com/news/articles/2022-07-27/mbk-partners-is-said-to-weigh-rival-bid-for-chinese-data-center-firm-vnet" target="_blank" rel="noopener">Bloomberg reported</a> on 27 July that MBK Partners is mulling an offer for VNET. </li>
<li>The offer is unattractive, and Mr Cheng, with 28.79% of voting rights, will need the support of other substantial shareholders. This latest offer underlines the current mispricing of the shares</li>
</ul>



21Vianet Group (VNET US) disclosed a privatisation proposal from the founder at US$8.20 per ADS, a 2.5% premium to The Hina Group/Industrial Bank’s offer of US$8.00 (disclosed on 11 April).
The data centre industry continues to be a hotbed for M&amp;A. Bloomberg reported on 27 July that MBK Partners is mulling an offer for VNET. 
The offer is unattractive, and Mr Cheng, with 28.79% of voting rights, will need the support of other substantial shareholders. This latest offer underlines the current mispricing of the shares


VNET’s Opportunistic US$8.20 Bid from the Founder

Equity Bottom-Up

<div>
<p>In StubWorld this week ...</p>
</div>
<div>
<div class="content-highlight">
<p><a href="https://www.smartkarma.com/entities/indofood-sukses-makmur-tbk-p" target="_blank" data-smartkarma-citation="entities:1053:1" rel="noopener"></a><a href="https://www.smartkarma.com/entities/pccw-ltd" target="_blank" data-smartkarma-citation="entities:873:1" rel="noopener">PCCW Ltd (8 HK)</a> <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0726/2021072600409.pdf" target="_blank" rel="noopener">enters into an SPA</a> with <a href="https://www.smartkarma.com/entities/digitalbridge-group-inc" target="_blank" data-smartkarma-citation="entities:20231:1" rel="noopener">DigitalBridge Group (DBRG US)</a> to sell its Hong Kong and Malaysian data center businesses for US$750mn. </p>
</div>
</div>
<div>
<p>Preceding my comments on PCCW are the weekly setup/unwind tables for Asia-Pacific Holdcos.</p>
</div>
<div>
<p>These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold - the $ value of the holding/opco held, over the parent’s market capitalisation, expressed in percent - of at least 20%.</p>
</div>
<div>
<p>As always, more below the fold.</p>
</div>


In StubWorld this week ...



PCCW Ltd (8 HK) enters into an SPA with DigitalBridge Group (DBRG US) to sell its Hong Kong and Malaysian data center businesses for US$750mn. 



Preceding my comments on PCCW are the weekly setup/unwind tables for Asia-Pacific Holdcos.


These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold - the $ value of the holding/opco held, over the parent’s market capitalisation, expressed in percent - of at least 20%.


As always, more below the fold.


United States

DigitalBridge Group, Inc. operates as a digital infrastructure firm. The Company invests in data centers, cell towers, fiber networks, small cells, and edge infrastructure. DigitalBridge Group serves customers in the United States.

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DigitalBridge Group (DBRG US)

StubWorld: PCCW Coming Up "Cheap"

I would still be invested where Richard Li is - and therefore be Long PCCW, short HKT here. I expect the NAV discount to narrow towards its one...

David Blennerhassett

VNET’s Opportunistic US$8.20 Bid from the Founder

The offer is unattractive. Nevertheless, with the data centre M&A activity levels remaining elevated, the current mispricing of the shares will...

Arun George

StubWorld: The Trimming Of PCCW

One of two events are likely hereon- either HKT is taken over - not by PCCW - but by a PRC telecommunication company such as China United Network;...

David Blennerhassett

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