Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Hangzhou Kangji Medical Instrument Co., Ltd. / Event-Driven

Hangzhou Kangji Medical Instrument Co., Ltd.

<ul>
<li>
6.95%. That's the key number at yesterday's Scheme Meeting for <a href="https://www.smartkarma.com/entities/hangzhou-kangji-medical-instrument-co-ltd" target="_blank" data-smartkarma-citation="entities:28938:1" rel="noopener">Hangzhou Kangji Medical Instrument Co., Ltd. (9997 HK)</a>.
</li>
<li>That's still below the 10% blocking stake. But closer than the bankers and the market was anticipating. </li>
<li>Arguably, the terms were therefore bang on. Last day of trading is today, with payment on the 16th December.</li>
</ul>



6.95%. That's the key number at yesterday's Scheme Meeting for Hangzhou Kangji Medical Instrument Co., Ltd. (9997 HK).

That's still below the 10% blocking stake. But closer than the bankers and the market was anticipating. 
Arguably, the terms were therefore bang on. Last day of trading is today, with payment on the 16th December.


Kangji Medical (9997 HK): A Close Run Thing

<ul>
<li>I tally 43 - mostly firm, mostly Asia-Pac - arb transactions currently being discussed and analysed on Smartkarma.</li>
<li>Three new deal was discussed on Smartkarma this week: <a href="https://www.smartkarma.com/entities/mandarin-oriental-international-ltd" target="_blank" data-smartkarma-citation="entities:4773:1" rel="noopener">Mandarin Oriental International (MAND SP)</a>, <a href="https://www.smartkarma.com/entities/rpmglobal-holdings-limited" target="_blank" data-smartkarma-citation="entities:16492:1" rel="noopener">RPMGlobal Holdings Limited (RUL AU)</a> and <a href="https://www.smartkarma.com/entities/genting-malaysia-bhd" target="_blank" data-smartkarma-citation="entities:3141:1" rel="noopener">Genting Malaysia (GENM MK)</a>.</li>
<li>Key updates/news took place on: <a href="https://www.smartkarma.com/entities/mayne-pharma-group-ltd" target="_blank" data-smartkarma-citation="entities:757:1" rel="noopener">Mayne Pharma (MYX AU)</a>, <a href="https://www.smartkarma.com/entities/iress-ltd" target="_blank" data-smartkarma-citation="entities:15342:1" rel="noopener">Iress Ltd (IRE AU)</a>, and <a href="https://www.smartkarma.com/entities/hangzhou-kangji-medical-instrument-co-ltd" target="_blank" data-smartkarma-citation="entities:28938:1" rel="noopener">Hangzhou Kangji Medical Instrument Co., Ltd. (9997 HK)</a>.</li>
</ul>


I tally 43 - mostly firm, mostly Asia-Pac - arb transactions currently being discussed and analysed on Smartkarma.
Three new deal was discussed on Smartkarma this week: Mandarin Oriental International (MAND SP), RPMGlobal Holdings Limited (RUL AU) and Genting Malaysia (GENM MK).
Key updates/news took place on: Mayne Pharma (MYX AU), Iress Ltd (IRE AU), and Hangzhou Kangji Medical Instrument Co., Ltd. (9997 HK).


(Mostly) Asia-Pac M&A: Mandarin Oriental, RPMGlobal, Genting, Mayne Pharma, Iress, Kangji Medical

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/hangzhou-kangji-medical-instrument-co-ltd" target="_blank" data-smartkarma-citation="entities:28938:1" rel="noopener">Hangzhou Kangji Medical Instrument Co., Ltd. (9997 HK)</a>’s IFA opines that the consortium’s HK$9.25 privatisation offer is fair and reasonable. The vote is on 10 November. </li>
<li>I previously argued that the vote carries risk due to a solid interim, the imminent surgical robot growth story, unfavourable AGM voting patterns, and emerging retail opposition.</li>
<li>However, the risk has been lowered due to Bin Yuan and LYFE no longer being shareholders, along with the peer derating. At the last close, the gross/annualised spread is 3.7%/22.0%.</li>
</ul>



Hangzhou Kangji Medical Instrument Co., Ltd. (9997 HK)’s IFA opines that the consortium’s HK$9.25 privatisation offer is fair and reasonable. The vote is on 10 November. 
I previously argued that the vote carries risk due to a solid interim, the imminent surgical robot growth story, unfavourable AGM voting patterns, and emerging retail opposition.
However, the risk has been lowered due to Bin Yuan and LYFE no longer being shareholders, along with the peer derating. At the last close, the gross/annualised spread is 3.7%/22.0%.


Kangji Medical (9997 HK): Scheme Vote on 10 November

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

Hangzhou Kangji Medical Instrument Co., Ltd. / Equity Bottom-Up

<ul>
<li>The steady growth in revenue/overseas revenue proportion/gross profit indicated that Kangji’s core business was still in good shape in 25H1. Losses of Weijing increased because commercialization is in initial stage.</li>
<li>The declining net profit in 25H1 may encourage some investors to support the privatization, but there are still some investors planning to oppose this privatization based on the sample screenshots.</li>
<li>Risk-Takers can bet on the success of privatization to obtain arbitrage returns.But deal break also offers an excellent opportunity to buy at a low price(similar to the playbook on Henlius).</li>
</ul>


The steady growth in revenue/overseas revenue proportion/gross profit indicated that Kangji’s core business was still in good shape in 25H1. Losses of Weijing increased because commercialization is in initial stage.
The declining net profit in 25H1 may encourage some investors to support the privatization, but there are still some investors planning to oppose this privatization based on the sample screenshots.
Risk-Takers can bet on the success of privatization to obtain arbitrage returns.But deal break also offers an excellent opportunity to buy at a low price(similar to the playbook on Henlius).


Kangji Medical (9997 HK) Privatization Update - About the 25H1 Results and the Privatization Outlook

<ul>
<li>On the 12th August, <a href="https://www.smartkarma.com/entities/hangzhou-kangji-medical-instrument-co-ltd" target="_blank" data-smartkarma-citation="entities:28938:1" rel="noopener">Hangzhou Kangji Medical (9997 HK)</a> announced an Offer, by way of a Scheme, from a consortium led by TPG and Qatar Investment Authority, together with the founders.</li>
<li>The HK$9.25/share consideration price (declared final), was an lacklustre 9.9% premium to last close. But pitched around a four-year high. </li>
<li>
<a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2025/1013/2025101300039.pdf" target="_blank" rel="noopener">The Scheme Document is now out</a>, with a Court Meeting on the 10th November and expected payment around the 16th December - in line with my expectations.</li>
</ul>


On the 12th August, Hangzhou Kangji Medical (9997 HK) announced an Offer, by way of a Scheme, from a consortium led by TPG and Qatar Investment Authority, together with the founders.
The HK$9.25/share consideration price (declared final), was an lacklustre 9.9% premium to last close. But pitched around a four-year high. 

The Scheme Document is now out, with a Court Meeting on the 10th November and expected payment around the 16th December - in line with my expectations.


Kangji Medical (9997 HK): 10th Nov Shareholder Vote on Founders/TPG/QIA's Offer

China

Hangzhou Kangji Medical Instrument Co., Ltd. manufactures and distributes medical instruments. The Company produces laparoscopy equipment, thoracoscopy equipment, gynecology equipment, urology equipment, gastroenterology equipment, and other products. Hangzhou Kangji Medical Instrument sells its products to Europe, United States, Southeast Asia, and other countries and regions.

Hangzhou Kangji Medical Instrument Co., Ltd. (9997 HK)

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Hangzhou Kangji Medical Instrument Co., Ltd. (9997 HK)

Kangji Medical (9997 HK): A Close Run Thing

Done & dusted. But closer than expected. This will trade at or close to terms. Cash out or wait for payment. If not in, perhaps run a ruler over...

David Blennerhassett

(Mostly) Asia-Pac M&A: Mandarin Oriental, RPMGlobal, Genting, Mayne Pharma, Iress, Kangji Medical

This insight provides a summary of gross/annualised spreads (on deals discussed on Smartkarma) across Asia-Pacific as at the last trading date, and...

David Blennerhassett

Kangji Medical (9997 HK): Scheme Vote on 10 November

Despite a light offer, the vote risk has been lowered due to Bin Yuan/LYFE no longer being shareholders, along with the peer derating. At the last...

Arun George

Kangji Medical (9997 HK) Privatization Update - About the 25H1 Results and the Privatization Outlook

The Scheme Document has been released, with notices of the Court Meeting and the EGM to be held on Nov.10. Although there are still some investors...

Xinyao (Criss) Wang

Kangji Medical (9997 HK): 10th Nov Shareholder Vote on Founders/TPG/QIA's Offer

I expect this Offer gets up. I'd pay up to ~HK$9.00/share for a ~15% annualised return. If you have the risk bandwidth for HK arbs, get involved.

David Blennerhassett

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