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

Haitong International Securities / Event-Driven

Haitong International Securities (TFZ GR)

<ul>
<li>
<a href="https://www.smartkarma.com/entities/haitong-international-securities-group-ltd" target="_blank" data-smartkarma-citation="entities:13153:1" rel="noopener">Haitong International Securities Group (665 HK)</a> entered a trading halt pending the release of an announcement under the Hong Kong Code on Takeovers and Mergers on 27 September. </li>
<li>Bloomberg reported that <a href="https://www.smartkarma.com/entities/haitong-securities-co-ltd-h" target="_blank" data-smartkarma-citation="entities:5665:1" rel="noopener">Haitong Securities Co Ltd (H) (6837 HK)</a>, the controlling shareholder, plans to buy the remainder of Haitong International to stem its losses.</li>
<li>Privatisation through a Bermuda scheme involves the headcount test, so a decent premium is required – privatisation precedents suggest HK$1.08-1.13 per share offer (52%-59% premium to last close). </li>
</ul>



Haitong International Securities Group (665 HK) entered a trading halt pending the release of an announcement under the Hong Kong Code on Takeovers and Mergers on 27 September. 
Bloomberg reported that Haitong Securities Co Ltd (H) (6837 HK), the controlling shareholder, plans to buy the remainder of Haitong International to stem its losses.
Privatisation through a Bermuda scheme involves the headcount test, so a decent premium is required – privatisation precedents suggest HK$1.08-1.13 per share offer (52%-59% premium to last close). 


Haitong International (665 HK): Haitong Securities Ponders an Offer

<ul>
<li>
<a href="https://www.smartkarma.com/entities/mason-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:17664:1" rel="noopener">Mason Group Holdings (273 HK)</a> announced a privatisation offer from Red Emerald Capital at HK$0.0338 per share, a 20.7% premium to the undisturbed price of HK$0.0280 per share (30 May). </li>
<li>The key conditions are SFC approval and the scheme being approved by at least 75% disinterested shareholders (&lt;10% disinterested shareholders rejection). The offer price has not been declared final.</li>
<li>Four shareholders hold a blocking stake - three have provided irrevocables while the other will accept due to the attractive ROI. Therefore, there is a clear pathway to completion.</li>
</ul>



Mason Group Holdings (273 HK) announced a privatisation offer from Red Emerald Capital at HK$0.0338 per share, a 20.7% premium to the undisturbed price of HK$0.0280 per share (30 May). 
The key conditions are SFC approval and the scheme being approved by at least 75% disinterested shareholders (&lt;10% disinterested shareholders rejection). The offer price has not been declared final.
Four shareholders hold a blocking stake - three have provided irrevocables while the other will accept due to the attractive ROI. Therefore, there is a clear pathway to completion.


Mason Group (273 HK): Privatisation Bid at HK$0.0338 Per Share

<ul>
<li>
<a href="https://www.smartkarma.com/entities/kingston-financial-group-ltd" target="_blank" data-smartkarma-citation="entities:3566:1" rel="noopener">Kingston Financial (1031 HK)</a>’s scheme resolution was approved at today’s scheme meeting - 99.89% of independent share votes cast FOR (0.09% of all independent shareholders AGAINST).</li>
<li>The scheme comfortably passed the headcount test with 44 FOR and 13 AGAINST the scheme (56 FOR and 20 AGAINST on a look-through basis).  </li>
<li>The last trading is on 10 February. At the last close and for the 3 March payment, the gross and annualised spread to the offer is 3.4% and 69.3%, respectively. </li>
</ul>



Kingston Financial (1031 HK)’s scheme resolution was approved at today’s scheme meeting - 99.89% of independent share votes cast FOR (0.09% of all independent shareholders AGAINST).
The scheme comfortably passed the headcount test with 44 FOR and 13 AGAINST the scheme (56 FOR and 20 AGAINST on a look-through basis).  
The last trading is on 10 February. At the last close and for the 3 March payment, the gross and annualised spread to the offer is 3.4% and 69.3%, respectively. 


Kingston Financial (1031 HK) Scheme: That Is a Pass

<ul>
<li>The <a href="https://www.smartkarma.com/entities/kingston-financial-group-ltd" target="_blank" data-smartkarma-citation="entities:3566:1" rel="noopener">Kingston Financial (1031 HK)</a> scheme document is out with the scheme meeting scheduled for 9 February. The IFA considers the offer to be fair and reasonable. </li>
<li>Key conditions include approval by at least 75% of independent shareholders (&lt;10% of independent shareholders rejection) and the headcount test. No shareholder holds a blocking stake.</li>
<li>Peer re-rating increases the headcount test risk. At the last close and for the 10 March payment, the gross and annualised spread is 5.3% and 42.2%, respectively.</li>
</ul>


The Kingston Financial (1031 HK) scheme document is out with the scheme meeting scheduled for 9 February. The IFA considers the offer to be fair and reasonable. 
Key conditions include approval by at least 75% of independent shareholders (&lt;10% of independent shareholders rejection) and the headcount test. No shareholder holds a blocking stake.
Peer re-rating increases the headcount test risk. At the last close and for the 10 March payment, the gross and annualised spread is 5.3% and 42.2%, respectively.


Kingston Financial’s (1031 HK) Vote on 9 February

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<a href="https://www.smartkarma.com/entities/get-nice-holdings-ltd" target="_blank" data-smartkarma-citation="entities:16415:1" rel="noopener">Get Nice Holdings (64 HK)</a> (GNH) has <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0916/2020091601148.pdf" target="_blank" rel="noopener">announced</a> its Hung Hon Man (CEO), with 29.99%, has made a voluntary cash offer of HK$0.17/share, a tiny premium to the undisturbed price. The Offer is conditional on  Hung and Concert Parties holding more than 50% of the voting rights in GNH.
GNH holds 72.99% in Get Nice Financial (1469 HK) (GNF). Should the Offer for GNH turn unconditional, the Offeror would be obligated to make a downstream Offer for GNF. That Offer price will be HK$0.4726/share, a 33.44% discount to last close.
Chain Principle Offers invariably offer minimum to negative premiums - but the mechanics of how they are calculated are always worth a look. 
As always, more below the fold.

Get Nice Holdings (64 HK) (GNH) has announced its Hung Hon Man (CEO), with 29.99%, has made a voluntary cash offer of HK$0.17/share, a tiny premium to the undisturbed price. The Offer is conditional on  Hung and Concert Parties holding more than 50% of the voting rights in GNH.
GNH holds 72.99% in Get Nice Financial (1469 HK) (GNF). Should the Offer for GNH turn unconditional, the Offeror would be obligated to make a downstream Offer for GNF. That Offer price will be HK$0.4726/share, a 33.44% discount to last close.
Chain Principle Offers invariably offer minimum to negative premiums - but the mechanics of how they are calculated are always worth a look. 
As always, more below the fold.

Get Nice (64 HK)'s VGO. Possible Downstream Offer For Get Nice (1469 HK)

Hong Kong

Get Nice is an investment holding company primarily engaged in financial services, including securities brokerage, margin financing, money lending, and corporate finance. The company also has interests in property development and investment, and real estate agency services. It was founded in 1988 and is headquartered in Hong Kong.

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Get Nice (64 HK)

Haitong International (665 HK): Haitong Securities Ponders an Offer

Privatisation through a Bermuda scheme involves the headcount test, so a decent premium is required – privatisation precedents suggest HK$1.08-1.13...

Arun George

Kingston Financial (1031 HK) Scheme: That Is a Pass

The last trading is on 10 February. At the last close and for the 3 March payment, the gross and annualised spread to the offer is 3.4% and 69.3%,...

Arun George

Kingston Financial’s (1031 HK) Vote on 9 February

A modest offer and peer re-rating increase the headcount test risk. It could be a close call but the privatisation offer should have enough to...

Arun George

Get Nice (64 HK)'s VGO. Possible Downstream Offer For Get Nice (1469 HK)

Get Nice Holdings (64 HK)has announced its major shareholder, with

David Blennerhassett

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Haitong International (665 HK): Haitong Securities Ponders an Offer

Privatisation through a Bermuda scheme involves the headcount test, so a decent premium is required – privatisation precedents suggest HK$1.08-1.13...

Arun George

Mason Group (273 HK): Privatisation Bid at HK$0.0338 Per Share

Four shareholders hold a blocking stake - three have provided irrevocables while the other will accept due to the attractive ROI. Therefore, there...

Arun George

Kingston Financial (1031 HK) Scheme: That Is a Pass

The last trading is on 10 February. At the last close and for the 3 March payment, the gross and annualised spread to the offer is 3.4% and 69.3%,...

Arun George

Kingston Financial’s (1031 HK) Vote on 9 February

A modest offer and peer re-rating increase the headcount test risk. It could be a close call but the privatisation offer should have enough to...

Arun George

Get Nice (64 HK)'s VGO. Possible Downstream Offer For Get Nice (1469 HK)

Get Nice Holdings (64 HK)has announced its major shareholder, with

David Blennerhassett