Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Last Week in Event SPACE: Shinsei Bank, Huifu Payment, Vedanta, Cardinal Resources, Jih Sun Finance

Fashion wear and accessory player <a href="https://www.smartkarma.com/entities/i-t-ltd" target="_blank" data-smartkarma-citation="entities:2795:1" rel="noopener">I.T Ltd (999 HK)</a> has received a pre-conditional <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/1206/2020120600017.pdf" target="_blank" rel="noopener">Offer</a>, by way of a Scheme, at HK$3.00/share, a 54.6% premium to last close. The Offer price is final.
The Offeror is Brooklyn Investment Limited, which is 50.65% owned by the Founder Holdco and 49.35% by CVC Holdco. Founder Holdco is held by Sham Kar Wai (Chairman and founder), Sham Kin Wai (ED and CCO), and family members. Founder also controls 63.61% of shares out. CVC Holdco is wholly-owned by CVC Funds.
The pre-condition refers to approval from the State Administration for Market Regulation of the PRC (SAMR), the anti-monopoly watchdog. This condition is not waiverable. 
Conditions to the Scheme are standard: at least 75% of Independent/Disinterested Shares FOR &amp; not more than 10% of ALL Independent Shares against. The headcount test applies as IT is Bermuda incorporated.
Disinterested shareholders total 36.39% of shares out therefore the blocking stake is equivalent to 3.639% or 43.52mn shares. 
More below the fold.

Fashion wear and accessory player I.T Ltd (999 HK) has received a pre-conditional Offer, by way of a Scheme, at HK$3.00/share, a 54.6% premium to last close. The Offer price is final.
The Offeror is Brooklyn Investment Limited, which is 50.65% owned by the Founder Holdco and 49.35% by CVC Holdco. Founder Holdco is held by Sham Kar Wai (Chairman and founder), Sham Kin Wai (ED and CCO), and family members. Founder also controls 63.61% of shares out. CVC Holdco is wholly-owned by CVC Funds.
The pre-condition refers to approval from the State Administration for Market Regulation of the PRC (SAMR), the anti-monopoly watchdog. This condition is not waiverable. 
Conditions to the Scheme are standard: at least 75% of Independent/Disinterested Shares FOR &amp; not more than 10% of ALL Independent Shares against. The headcount test applies as IT is Bermuda incorporated.
Disinterested shareholders total 36.39% of shares out therefore the blocking stake is equivalent to 3.639% or 43.52mn shares. 
More below the fold.

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.

<a href="https://www.smartkarma.com/entities/i-t-ltd" target="_blank" data-smartkarma-citation="entities:2795:1" rel="noopener">I.T Ltd (999 HK)</a> is principally engaged in the design, sourcing and sales of fashion wears and accessories. On Sunday, I.T announced a pre-conditional privatisation offer from Brooklyn Investment Limited, which is owned by Founder group (50.65%) and CVC (49.35%). The joint offerors will offer HK$3.00 in cash per non-founder scheme share, a premium of 54.6% to the last trading price of HK$1.94 per share (30 November prior to the trading halt). <div class="content-highlight">The pre-condition is regulatory approval from SAMR. The key conditions precedents are the headcount test and the scheme approved by at least 75% disinterested shareholders (&lt;10% disinterested shareholders rejection). While the offer price is not a knockout bid particularly for long-term shareholders, I.T's uncertain future (due to short-term challenging market conditions and long-term structural challenges) and a reasonable offer make it likely that the privatisation succeeds. </div>

I.T Ltd (999 HK) is principally engaged in the design, sourcing and sales of fashion wears and accessories. On Sunday, I.T announced a pre-conditional privatisation offer from Brooklyn Investment Limited, which is owned by Founder group (50.65%) and CVC (49.35%). The joint offerors will offer HK$3.00 in cash per non-founder scheme share, a premium of 54.6% to the last trading price of HK$1.94 per share (30 November prior to the trading halt). The pre-condition is regulatory approval from SAMR. The key conditions precedents are the headcount test and the scheme approved by at least 75% disinterested shareholders (&lt;10% disinterested shareholders rejection). While the offer price is not a knockout bid particularly for long-term shareholders, I.T's uncertain future (due to short-term challenging market conditions and long-term structural challenges) and a reasonable offer make it likely that the privatisation succeeds. 

I.T’s Limited’s Privatisation Bid from a CVC-Led Consortium

Equity Capital Markets

<a href="https://www.smartkarma.com/entities/28049" target="_blank" data-smartkarma-citation="entities:28049:1">Mulsanne Group Holding Ltd (1817 HK)</a> seeks to raise net IPO proceeds of HK$973.0 million ($124 million), at the mid-point of the IPO price range. Cornerstone investors, Wanda Group and Sasseur, intend to purchase around 19% of the offer shares at the mid-point of the IPO price range.<div class="content-highlight">In  <a href="https://www.smartkarma.com/insights/mulsanne-group-gxg-ipo-preview-the-wrong-trousers" target="_blank" data-smartkarma-citation="insights:29488">Mulsanne Group (GXG) IPO Preview: The Wrong Trousers</a> and <a href="https://www.smartkarma.com/insights/mulsanne-group-gxg-ipo-a-poor-start-to-2019" target="_blank" data-smartkarma-citation="insights:29794">Mulsanne Group (GXG) IPO: A Poor Start to 2019</a>, we cautioned that that Mulsanne’s fundamentals are less than inspiring.  We believe that the proposed IPO price range is unattractive and would not participate in the proposed IPO price range. </div>

Mulsanne Group Holding Ltd (1817 HK) seeks to raise net IPO proceeds of HK$973.0 million ($124 million), at the mid-point of the IPO price range. Cornerstone investors, Wanda Group and Sasseur, intend to purchase around 19% of the offer shares at the mid-point of the IPO price range.In  Mulsanne Group (GXG) IPO Preview: The Wrong Trousers and Mulsanne Group (GXG) IPO: A Poor Start to 2019, we cautioned that that Mulsanne’s fundamentals are less than inspiring.  We believe that the proposed IPO price range is unattractive and would not participate in the proposed IPO price range. 

Mulsanne Group (GXG) IPO: Unattractive Valuation

Expert on Japan Retail and Consumer Markets, JapanConsuming

Michael Causton

Expert on Japan Retail and Consumer Markets

Real Insight on Japanese Consumer Markets

JapanConsuming

JapanConsuming is a specialist research firm producing intelligence on Japanese retail and consumer markets. Founded in 2000, JapanConsuming has become the leading provider of insights on Japanese retailers and consumer trends to retailers, brands, government agencies and investors. As well as a highly regarded monthly report on the market, JapanConsuming produces in-depth reports on retail sectors, seminars on key trends and telephone consulting to investors on trends and retailers.

JapanConsuming was founded by Michael Causton and Roy Larke. 

Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/23991" target="_blank" data-smartkarma-citation="entities:23991:1">Tokyo Base (3415 JP)</a> was Japan’s fastest growing fashion retailer for three years in a row and in FY2017 was the most profitable by operating margins, ahead even of Uniqlo.
FY2018 has seen a sharp reversal in its fortunes, but by focusing on its two big chains and its new casual apparel concept, Public Tokyo, the fashion firm is optimistic that it will see a return to form.

Tokyo Base (3415 JP) was Japan’s fastest growing fashion retailer for three years in a row and in FY2017 was the most profitable by operating margins, ahead even of Uniqlo.
FY2018 has seen a sharp reversal in its fortunes, but by focusing on its two big chains and its new casual apparel concept, Public Tokyo, the fashion firm is optimistic that it will see a return to form.

Tokyo Base: Teething Problems but Still Potential

Hong Kong

I.T Limited is a Hong Kong-based investment holding company primarily engaged in the retailing of fashion apparels and accessories, offering international designer brands, in-house brands, and licensed brands through multi-brand and single-brand stores. The company was founded in 1988 and is headquartered in Wong Chuk Hang, Hong Kong.

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I.T (999 HK)

Last Week in Event SPACE: Shinsei Bank, Huifu Payment, Vedanta, Cardinal Resources, Jih Sun Finance

The weekend is upon us - pour yourself some coffee (or mulled wine) and sift through a brief summary of insights on various events discussed during...

David Blennerhassett

I.T. (999 HK): Management/CVC-Led Offer

Currently trading at a gross/annualised spread of 8.3%/21.1%, assuming the transaction completes early May. You'd expect this to trade wide given...

David Blennerhassett

I.T’s Limited’s Privatisation Bid from a CVC-Led Consortium

I.T announced a pre-conditional privatisation offer of HK$3.00 in cash per non-founder scheme share, a premium of 54.6% to the last trading price....

Arun George

Mulsanne Group (GXG) IPO: Unattractive Valuation

Mulsanne Group Holding Ltd (1817 HK) seeks to raise net IPO proceeds of HK$973.0 million ($124 million), at the mid-point of the IPO price...

Arun George

Tokyo Base: Teething Problems but Still Potential

Tokyo Base (3415 JP) was Japan’s fastest growing fashion retailer for three years in a row and in FY2017 was the most profitable by operating...

Michael Causton

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