Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Guodian Technology & Environment Group / Event-Driven

Guodian Technology & Environment Group (9GT GR)

<ul>
<li>Environmental protection and wind power products manufacturer <strong><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></strong> (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 <strong>NOT</strong> be increased. No dividends are expected to be declared. </li>
<li>The pre-conditions include approvals from NDRC, MoC, SAFE, and CSRC.<strong> There is no tendering acceptance condition</strong>. This deal mirrors <strong><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></strong> and <strong><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></strong>'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><strong><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></strong> 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 <strong><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></strong>'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 <em>not</em> 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

<div>
<p>Back on the 9 July, <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> (BCL) <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0709/2021070901284.pdf" target="_blank" rel="noopener">announced</a> a pre-conditional Offer from its controlling shareholder, state-owned Beijing Capital Group, otherwise known as the Capital Group. The Offer price of HK$2.80/share was a 62.79% premium to last close, and a 150% premium to the average closing price over the previous 60 trading days. The Offer price would NOT be increased. No dividends are expected to be declared. A concurrent Offer for BCL's domestic shares at RMB2.334080/share was also tabled.</p>
</div>
<div>
<p>The pre-conditions, which cannot be waived, included approvals from NDRC, MoC, SAFE, and if applicable, SASAC.</p>
</div>
<div>
<p>As BCL is PRC incorporated and compulsory acquisition is not afforded under PRC law,  this delisting proposal is by way of a Merger by Absorption, which involves a Scheme-like vote from disinterested shareholders.</p>
<p>Unlike a number of PRC-incorporated privatisations, there is no tendering acceptance condition attached to this delisting.</p>
<p>Typically Merger by Absorption transactions complete in around four months.</p>
</div>
<div>
<p>This <em>appeared</em> a relatively clean deal although from the onset, it traded wide to terms, at an average gross spread to terms of ~13%, up to and including yesterday.</p>
<p>The dispatch of the Composite Doc was, as expected, <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0729/2021072901655.pdf" target="_blank" rel="noopener">delayed</a> to the 9 September (officially granted by the SFC on the  2 August) from the 29 July. </p>
<p>A profit warning was announced on the <a href="https://www1.hkexnews.hk/search/titlesearch.xhtml?lang=en" target="_blank" rel="noopener">30 July</a>. </p>
<p>Last night, BCL said the Pre-Condition has been <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0818/2021081801497.pdf" target="_blank" rel="noopener">satisfied</a>. There was no further application to the SFC to extend the dispatch of the Composite Doc.</p>
<p>This is a positive development. Expect the spread to tighten when shares begin trading this morning. </p>
</div>
<div>
<p>More below the fold.</p>
</div>


Back on the 9 July, Beijing Capital Land Ltd H (2868 HK) (BCL) announced a pre-conditional Offer from its controlling shareholder, state-owned Beijing Capital Group, otherwise known as the Capital Group. The Offer price of HK$2.80/share was a 62.79% premium to last close, and a 150% premium to the average closing price over the previous 60 trading days. The Offer price would NOT be increased. No dividends are expected to be declared. A concurrent Offer for BCL's domestic shares at RMB2.334080/share was also tabled.


The pre-conditions, which cannot be waived, included approvals from NDRC, MoC, SAFE, and if applicable, SASAC.


As BCL is PRC incorporated and compulsory acquisition is not afforded under PRC law,  this delisting proposal is by way of a Merger by Absorption, which involves a Scheme-like vote from disinterested shareholders.
Unlike a number of PRC-incorporated privatisations, there is no tendering acceptance condition attached to this delisting.
Typically Merger by Absorption transactions complete in around four months.


This appeared a relatively clean deal although from the onset, it traded wide to terms, at an average gross spread to terms of ~13%, up to and including yesterday.
The dispatch of the Composite Doc was, as expected, delayed to the 9 September (officially granted by the SFC on the  2 August) from the 29 July. 
A profit warning was announced on the 30 July. 
Last night, BCL said the Pre-Condition has been satisfied. There was no further application to the SFC to extend the dispatch of the Composite Doc.
This is a positive development. Expect the spread to tighten when shares begin trading this morning. 


More below the fold.


Beijing Capital Land (2868 HK): Pre-Cons Satisfied. This Should Trade Tight

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)

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

Beijing Capital Land (2868 HK): Pre-Cons Satisfied. This Should Trade Tight

This looks done - play the spread here. Assuming payment late-Oct, I would expect BCL to trade around $2.72 today, or a 3%/15% gross/annualised...

David Blennerhassett

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52-week Range

Market Cap (USDm)

P/E

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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

Beijing Capital Land (2868 HK): Pre-Cons Satisfied. This Should Trade Tight

This looks done - play the spread here. Assuming payment late-Oct, I would expect BCL to trade around $2.72 today, or a 3%/15% gross/annualised...

David Blennerhassett