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

Shandong Hi-Speed New Energy Group / Event-Driven

Shandong Hi-Speed New Energy Group (1250 HK)

<ul>
<li>
<a href="https://www.smartkarma.com/entities/beijing-enterprises-clean-energy-grp-ltd" target="_blank" data-smartkarma-citation="entities:6927:1" rel="noopener">Beijing Enterprises Clean Energy Grp (1250 HK)</a> and <a href="https://www.smartkarma.com/entities/china-shandong-hi-speed-financial-group-limited" target="_blank" data-smartkarma-citation="entities:10356:1" rel="noopener">China Shandong Hi-Speed Financial Group (412 HK)</a>/CSFG have simultaneously entered trading halts today. CSFG is likely a suitor for BE Clean Energy.</li>
<li>There is a track record of SOE privatisations of clean energy companies – <a href="https://www.smartkarma.com/entities/huadian-fuxin-energy-corp-ltd" target="_blank" data-smartkarma-citation="entities:59:1" rel="noopener">Huadian Fuxin Energy Corp (816 HK)</a>,  <a href="https://www.smartkarma.com/entities/huaneng-renewables-corp-h" target="_blank" data-smartkarma-citation="entities:7542:1" rel="noopener">Huaneng Renewables Corp H (958 HK)</a> and CP Clean Energy</li>
<li>In this note, we look at CSFG’s recent failed attempt at acquiring a 22.78% stake at a price of HK$0.088, along with BE Clean Energy's trading updates and peer multiples.   </li>
</ul>



Beijing Enterprises Clean Energy Grp (1250 HK) and China Shandong Hi-Speed Financial Group (412 HK)/CSFG have simultaneously entered trading halts today. CSFG is likely a suitor for BE Clean Energy.
There is a track record of SOE privatisations of clean energy companies – Huadian Fuxin Energy Corp (816 HK),  Huaneng Renewables Corp H (958 HK) and CP Clean Energy
In this note, we look at CSFG’s recent failed attempt at acquiring a 22.78% stake at a price of HK$0.088, along with BE Clean Energy's trading updates and peer multiples.   


BE Clean Energy Back in the Cross Hairs of China Shandong Hi-Speed Financial Group?

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Guodian Technology & Environment Group / Event-Driven

Guodian Technology & Environment Group (9GT GR)

<ul>
<li>Environmental protection and wind power products manufacturer <a href="https://www.smartkarma.com/entities/guodian-technology-environment-group-corp" target="_blank" data-smartkarma-citation="entities:3941:1" rel="noopener">Guodian Technology &amp; Environment Group (1296 HK)</a> (GTE) has announced a pre-conditional Offer from China Energy, a SASAC-controlled entity, and Guodian Power. </li>
<li>The Offer price is HK$1.08 per H-share, a 47.95% premium to last close. The Offer price will NOT be increased. No dividends are expected to be declared. </li>
<li>The pre-conditions include approvals from NDRC, MoC, SAFE, and CSRC. There is no tendering acceptance condition. This deal mirrors <a href="https://www.smartkarma.com/entities/beijing-capital-land-ltd-h" target="_blank" data-smartkarma-citation="entities:4543:1" rel="noopener">Beijing Capital Land (2868 HK)</a> and <a href="https://www.smartkarma.com/entities/shanghai-jin-jiang-capital-company-limited" target="_blank" data-smartkarma-citation="entities:15781:1" rel="noopener">Shanghai Jin Jiang (2006 HK)</a>'s.</li>
</ul>


Environmental protection and wind power products manufacturer Guodian Technology &amp; Environment Group (1296 HK) (GTE) has announced a pre-conditional Offer from China Energy, a SASAC-controlled entity, and Guodian Power. 
The Offer price is HK$1.08 per H-share, a 47.95% premium to last close. The Offer price will NOT be increased. No dividends are expected to be declared. 
The pre-conditions include approvals from NDRC, MoC, SAFE, and CSRC. There is no tendering acceptance condition. This deal mirrors Beijing Capital Land (2868 HK) and Shanghai Jin Jiang (2006 HK)'s.


Guodian Tech (1296 HK)’s Pre-Conditional Offer

Lanzhou Zhuangyuan Pasture / Event-Driven

<ul>
<li>PRC dairy farmer <a href="https://www.smartkarma.com/entities/lanzhou-zhuangyuan-pasture-co-ltd" target="_blank" data-smartkarma-citation="entities:10174:1" rel="noopener"></a><a href="https://www.smartkarma.com/entities/lanzhou-zhuangyuan-pasture-co-ltd" target="_blank" data-smartkarma-citation="entities:10174:1" rel="noopener">Lanzhou Zhuangyuan Pasture (1533 HK)</a> is proposing to buy back its H-shares, in cash. No price was cited in the HKEx announcement.</li>
<li>Such an Offer is expected to be done via a voluntary cash Offer. This suggests a condition to the Offer involves a tendering condition. </li>
<li>This is the second proposal in the Chinese dairy space in as many months, after infant-formula  firm <a href="https://www.smartkarma.com/entities/ausnutria-dairy-corp-ltd" target="_blank" data-smartkarma-citation="entities:13799:1" rel="noopener">Ausnutria Dairy Corp (1717 HK)</a>'s Scheme</li>
</ul>


PRC dairy farmer Lanzhou Zhuangyuan Pasture (1533 HK) is proposing to buy back its H-shares, in cash. No price was cited in the HKEx announcement.
Such an Offer is expected to be done via a voluntary cash Offer. This suggests a condition to the Offer involves a tendering condition. 
This is the second proposal in the Chinese dairy space in as many months, after infant-formula  firm Ausnutria Dairy Corp (1717 HK)'s Scheme


Lanzhou Zhuangyuan Pasture (1533 HK): Possible H-Share Delisting Offer

Shanghai Jin Jiang Capital / Event-Driven

<ul>
<li>Yesterday <a href="https://www.smartkarma.com/entities/shanghai-jin-jiang-capital-company-limited" target="_blank" data-smartkarma-citation="entities:15781:1" rel="noopener">Shanghai Jin Jiang (2006 HK)</a> announced Pacific Asset Management (19.02% of the H Shares), was given the green light from the SFC to vote at the H-Class Meeting.</li>
<li>Shanghai Jin Jiang's delisting proposal incorporates a vote requiring ≥ 75% for, ≤10% against from independent H-shareholders. Allowing Pacific Asset Management to vote is viewed positively.</li>
<li>This PRC merger by absorption does not involve any tendering condition. This deal looks even more done.</li>
</ul>


Yesterday Shanghai Jin Jiang (2006 HK) announced Pacific Asset Management (19.02% of the H Shares), was given the green light from the SFC to vote at the H-Class Meeting.
Shanghai Jin Jiang's delisting proposal incorporates a vote requiring ≥ 75% for, ≤10% against from independent H-shareholders. Allowing Pacific Asset Management to vote is viewed positively.
This PRC merger by absorption does not involve any tendering condition. This deal looks even more done.


Shanghai Jin Jiang Capital (2006 HK)’s Offer: Another Reason To Get Involved

<ul>
<li>Hotel operator <a href="https://www.smartkarma.com/entities/shanghai-jin-jiang-capital-company-limited" target="_blank" data-smartkarma-citation="entities:15781:1" rel="noopener">Shanghai Jin Jiang Capital Company Limited (2006 HK)</a> (SJJC) has <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/1124/2021112401322.pdf" target="_blank" rel="noopener">announced</a> a pre-conditional Offer from an entity primarily controlled by Shanghai SASAC. </li>
<li>The Offer price is HK$3.10 per H-share, a 33.62% premium to last close. The Offer price will NOT be increased. No dividends are expected to be declared. </li>
<li>The pre-conditions include approvals from NDRC, MoC, SAFE, and SASAC. There is no tendering acceptance condition. This deal is very similar to <a href="https://www.smartkarma.com/entities/beijing-capital-land-ltd-h" target="_blank" data-smartkarma-citation="entities:4543:1" rel="noopener">Beijing Capital Land Ltd H (2868 HK)</a>'s.</li>
</ul>


Hotel operator Shanghai Jin Jiang Capital Company Limited (2006 HK) (SJJC) has announced a pre-conditional Offer from an entity primarily controlled by Shanghai SASAC. 
The Offer price is HK$3.10 per H-share, a 33.62% premium to last close. The Offer price will NOT be increased. No dividends are expected to be declared. 
The pre-conditions include approvals from NDRC, MoC, SAFE, and SASAC. There is no tendering acceptance condition. This deal is very similar to Beijing Capital Land Ltd H (2868 HK)'s.


Shanghai Jin Jiang Capital (2006 HK)'s Pre-Conditional Offer

China

Huadian Fuxin Energy Corporation Limited is a clean energy company focused on power generation and sales. It operates a diversified portfolio of power generation projects, including hydropower, wind, solar, distributed, coal, nuclear, and biomass. The company is headquartered in Beijing, China, and was established in 2004.

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Huadian Fuxin Energy (1994343D HK)

BE Clean Energy Back in the Cross Hairs of China Shandong Hi-Speed Financial Group?

BE Clean Energy and CSFG have simultaneously entered trading halts today. CSFG is likely a suitor for BE Clean Energy. CSFG recently failed to...

Arun George

Guodian Tech (1296 HK)’s Pre-Conditional Offer

This looks done - play the spread here. Assuming payment mid-June, I would pay up to HK$1.00/share or a gross/annualised spread at 7%/19%.

David Blennerhassett

Shanghai Jin Jiang Capital (2006 HK)’s Offer: Another Reason To Get Involved

Shanghai Jin Jiang (2006 HK) announced Pacific Asset Management was given the green light from the SFC to vote at the H-Class Meeting. This deal...

David Blennerhassett

Shanghai Jin Jiang Capital (2006 HK)'s Pre-Conditional Offer

This looks done. Assuming payment late-Feb, I see the gross/annualised spread at 10.7%/47.9%. I'd be a buyer here. This is probably being done too...

David Blennerhassett

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

BE Clean Energy Back in the Cross Hairs of China Shandong Hi-Speed Financial Group?

BE Clean Energy and CSFG have simultaneously entered trading halts today. CSFG is likely a suitor for BE Clean Energy. CSFG recently failed to...

Arun George

Guodian Tech (1296 HK)’s Pre-Conditional Offer

This looks done - play the spread here. Assuming payment mid-June, I would pay up to HK$1.00/share or a gross/annualised spread at 7%/19%.

David Blennerhassett

Lanzhou Zhuangyuan Pasture (1533 HK): Possible H-Share Delisting Offer

PRC-Diary farmer Lanzhou Zhuangyuan Pasture (1533 HK) is proposing to buy back its H-shares, in cash. No price was cited in the HKEx announcement....

David Blennerhassett

Shanghai Jin Jiang Capital (2006 HK)’s Offer: Another Reason To Get Involved

Shanghai Jin Jiang (2006 HK) announced Pacific Asset Management was given the green light from the SFC to vote at the H-Class Meeting. This deal...

David Blennerhassett

Shanghai Jin Jiang Capital (2006 HK)'s Pre-Conditional Offer

This looks done. Assuming payment late-Feb, I see the gross/annualised spread at 10.7%/47.9%. I'd be a buyer here. This is probably being done too...

David Blennerhassett