Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Styrenix Performance Materials / Event-Driven

The Reverse Book Build process for the Delisting Offer of <a href="https://www.smartkarma.com/entities/ineos-styrolution-india-limited" target="_blank" data-smartkarma-citation="entities:1868:1" rel="noopener">INEOS Styrolution India Limited (INEOS IN)</a> is now complete. The Offer-to-Buy Acquisition Window (which is really an Offer to Sell reverse auction window) closed today with 2,918,055 shares offered in 1,877 offers across 192 different price points ranging from INR 419 - the Floor Price - to INR 4,190 which is ten times the Floor Price. The total submitted is 66.37% of the float.Only 60.00002% was required to form a Discovered Price.Now the question is whether the buyer, INEOS, will agree to the Discovered Price and complete the transaction, or whether they will reject it. IF they reject it, they have two days to propose a Counter Offer.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/147/410/original/Screenshot%202020-07-22%20at%209.24.52%20PM.png?1595424394" class="editor-image img-responsive" data-smartkarma-image-id="147410"></figure>As the (yellow) chart above shows, in the final minutes of trading today, shares popped sharply (from INR 810 to INR 885) as it looked more and more like there would be a Discovered Price well above the recent trading price.There are no announcements yet. So now we wait.More below.<hr>The setup in this case was described in <a href="https://www.smartkarma.com/insights/ineos-styrolution-india-a-tiny-delisting-to-watch-how-the-rbb-sausage-is-made" target="_blank" data-smartkarma-citation="insights:41251" rel="noopener">INEOS Styrolution India - A Tiny Delisting to Watch How the RBB Sausage Is Made</a> and these situations are described in greater detail in <a href="https://www.smartkarma.com/insights/indian-delisting-exit-offers-know-your-process-and-the-games-played" target="_blank" data-smartkarma-citation="insights:39683" rel="noopener">Indian Delisting/Exit Offers - Know Your Process and The Games Played</a> and <a href="https://www.smartkarma.com/insights/failed-exit-offers-in-india-lessons-for-vedl-adani-and-hexw" target="_blank" data-smartkarma-citation="insights:40492" rel="noopener">Failed Exit Offers in India: Lessons for VEDL, ADANI, and HEXW?</a>. An Indian M&amp;A Guide is available <a href="https://www.smartkarma.com/insights/quiddity-india-m-a-guide-2019" target="_blank" rel="noopener">here</a>.

The Reverse Book Build process for the Delisting Offer of INEOS Styrolution India Limited (INEOS IN) is now complete. The Offer-to-Buy Acquisition Window (which is really an Offer to Sell reverse auction window) closed today with 2,918,055 shares offered in 1,877 offers across 192 different price points ranging from INR 419 - the Floor Price - to INR 4,190 which is ten times the Floor Price. The total submitted is 66.37% of the float.Only 60.00002% was required to form a Discovered Price.Now the question is whether the buyer, INEOS, will agree to the Discovered Price and complete the transaction, or whether they will reject it. IF they reject it, they have two days to propose a Counter Offer.As the (yellow) chart above shows, in the final minutes of trading today, shares popped sharply (from INR 810 to INR 885) as it looked more and more like there would be a Discovered Price well above the recent trading price.There are no announcements yet. So now we wait.More below.The setup in this case was described in INEOS Styrolution India - A Tiny Delisting to Watch How the RBB Sausage Is Made and these situations are described in greater detail in Indian Delisting/Exit Offers - Know Your Process and The Games Played and Failed Exit Offers in India: Lessons for VEDL, ADANI, and HEXW?. An Indian M&amp;A Guide is available here.  

INEOS Styrolution - Looks Like We Have a Price. Now We Wait For The Promoter's Answer

<div class="content-highlight">This insight is meant to provide a hands-on guide for investors looking at the Indian Delisting Offer situations of <a href="https://www.smartkarma.com/entities/vedanta-ltd" target="_blank" data-smartkarma-citation="entities:514:1" rel="noopener">Vedanta Ltd (VEDL IN)</a>, <a href="https://www.smartkarma.com/entities/hexaware-technologies-ltd" target="_blank" data-smartkarma-citation="entities:7882:1" rel="noopener">Hexaware Technologies (HEXW IN)</a>, and <a href="https://www.smartkarma.com/entities/adani-power-ltd" target="_blank" data-smartkarma-citation="entities:247:1" rel="noopener">Adani Power Ltd (ADANI IN)</a>.  It shows the timing, the tools used to observe the reverse book build in real-time, and allows one to get a "practice run" at the larger deals going forward.</div><hr>Almost a year ago, a smallcap Indian company called <a href="https://www.smartkarma.com/entities/ineos-styrolution-india-limited" target="_blank" data-smartkarma-citation="entities:1868:1" rel="noopener">INEOS Styrolution India Limited (INEOS IN)</a>, 75%-owned by closely-held UK petrochemicals powerhouse INEOS, announced that INEOS was interested in taking it private. <div class="content-remarks">INEOS, which was created as a spinoff from Inspec by chemical engineer and private equity fund director James Ratcliffe (who was at the time a co-founder of Inspec) in the late 1980s as a way to spin off Inspec's ethylene oxide facility in Belgium that it had purchased earlier from BP, grew quickly by taking out the commodity chemical businesses from various refiners and petrochem companies. 30+yrs later, Mr Ratcliffe is a billionaire 20x over and INEOS reportedly has annual turnover approaching US$100bn. Just two weeks ago, INEOS <a href="https://www.bbc.com/news/business-53222946" target="_blank" rel="noopener">signed a deal to buy</a> out BP's remaining petrochemicals businesses for US$5bn.</div>The <a href="https://www.bseindia.com/xml-data/corpfiling/AttachHis/1aff7400-a845-46f0-a301-14e7487f805d.pdf" target="_blank" rel="noopener">announcement</a> on 16 August 2019 was made whereby the Promoter had said to the Board of the Indian unit that it was interested in buying out the 4.4mm shares it did not hold, and delisting the company. The Board appointed a merchant banker which did a due diligence report, and the a week later the Board gave its <a href="https://www.bseindia.com/xml-data/corpfiling/AttachHis/778c1efc-96e7-4dcd-81a2-acdac3343ca1.pdf" target="_blank" rel="noopener">approval</a>. The postal ballot started a week later at the end of August, and results were <a href="https://www.bseindia.com/xml-data/corpfiling/AttachHis/81e76c71-8caf-44e6-995f-9d63cab2f474.pdf" target="_blank" rel="noopener">known</a> on 1 October 2019, with minority shareholders agreeing to run a Delisting Offer process. Then things went quiet. As noted in <a href="https://www.smartkarma.com/insights/indian-delisting-exit-offers-know-your-process-and-the-games-played" target="_blank" data-smartkarma-citation="insights:39683" rel="noopener">Indian Delisting/Exit Offers - Know Your Process and The Games Played</a>, the company has one year from the shareholder approval to get approval from the Exchange. That request went in a short while ago and last week INEOS Styrolution India Limited <a href="https://www.bseindia.com/xml-data/corpfiling/AttachHis/9feaa062-5f5d-44ee-a465-97625645bdae.pdf" target="_blank" rel="noopener">announced</a> that the NSE and BSE had given their in-principle approval.  This is a smallcap situation - the float is worth less than US$50mm - but for those watching the delisting offers of <a href="https://www.smartkarma.com/entities/vedanta-ltd" target="_blank" data-smartkarma-citation="entities:514:1" rel="noopener">Vedanta Ltd (VEDL IN)</a>, <a href="https://www.smartkarma.com/entities/hexaware-technologies-ltd" target="_blank" data-smartkarma-citation="entities:7882:1" rel="noopener">Hexaware Technologies (HEXW IN)</a>, and <a href="https://www.smartkarma.com/entities/adani-power-ltd" target="_blank" data-smartkarma-citation="entities:247:1" rel="noopener">Adani Power Ltd (ADANI IN)</a>, it is probably worthwhile absorbing the details because they are out in the open. Much more below the fold. <hr><table class="table table-striped"><tbody>
<tr><td colspan="2" style="width: 214px;">Relevant Insights To Date</td></tr>
<tr><td colspan="2" style="width: 214px;">General Coverage of the Event Type</td></tr>
<tr>
<td style="width: 214px;">Indian M&amp;A Guide</td>
<td style="width: 489px;">
<a href="https://www.smartkarma.com/insights/quiddity-india-m-a-guide-2019" target="_blank" data-smartkarma-citation="insights:30885" rel="noopener">Quiddity India M&amp;A Guide 2019</a> </td>
</tr>
<tr>
<td style="width: 214px;">Overview of Delisting Offers</td>
<td style="width: 489px;">
<a href="https://www.smartkarma.com/insights/indian-delisting-exit-offers-know-your-process-and-the-games-played" target="_blank" data-smartkarma-citation="insights:39683" rel="noopener">Indian Delisting/Exit Offers - Know Your Process and The Games Played</a> </td>
</tr>
<tr>
<td style="width: 214px;">Overview of Failed Exit Offers</td>
<td style="width: 489px;">
<a href="https://www.smartkarma.com/insights/failed-exit-offers-in-india-lessons-for-vedl-adani-and-hexw" target="_blank" data-smartkarma-citation="insights:40492" rel="noopener">Failed Exit Offers in India: Lessons for VEDL, ADANI, and HEXW?</a> </td>
</tr>
<tr><td colspan="2"></td></tr>
<tr><td colspan="2" style="width: 214px;">Specific Single Stock Situations Live Now</td></tr>
<tr>
<td style="width: 214px;">
<a href="https://www.smartkarma.com/entities/vedanta-ltd" target="_blank" data-smartkarma-citation="entities:514:1" rel="noopener">Vedanta Ltd (VEDL IN)</a> </td>
<td style="width: 489px;">
<a href="https://www.smartkarma.com/insights/vedanta-delisting-offer-how-it-goes-from-here" target="_blank" data-smartkarma-citation="insights:39761" rel="noopener">Vedanta Delisting Offer - How It Goes From Here</a> </td>
</tr>
<tr>
<td style="width: 214px;">
<a href="https://www.smartkarma.com/entities/vedanta-ltd" target="_blank" data-smartkarma-citation="entities:514:1" rel="noopener">Vedanta Ltd (VEDL IN)</a> </td>
<td style="width: 489px;">
<a href="https://www.smartkarma.com/insights/vedanta-delisting-offer-opportunities-and-timing" target="_blank" data-smartkarma-citation="insights:40528" rel="noopener">Vedanta Delisting Offer: Opportunities and Timing</a> </td>
</tr>
<tr>
<td style="width: 214px;">
<a href="https://www.smartkarma.com/entities/vedanta-ltd" target="_blank" data-smartkarma-citation="entities:514:1" rel="noopener">Vedanta Ltd (VEDL IN)</a> </td>
<td style="width: 489px;">
<a href="https://www.smartkarma.com/insights/vedanta-buyout-loan-huge-hindustan-zinc-div-but-may-change-vedanta-rbb-timing" target="_blank" data-smartkarma-citation="insights:40653" rel="noopener">Vedanta Buyout Loan = HUGE Hindustan Zinc Div But May Change Vedanta RBB Timing</a> </td>
</tr>
<tr>
<td style="width: 214px;">
<a href="https://www.smartkarma.com/entities/vedanta-ltd" target="_blank" data-smartkarma-citation="entities:514:1" rel="noopener">Vedanta Ltd (VEDL IN)</a> </td>
<td style="width: 489px;">
<a href="https://www.smartkarma.com/insights/putting-sightlines-on-the-vedanta-discovered-price" target="_blank" data-smartkarma-citation="insights:41236" rel="noopener">Putting Sightlines on the Vedanta Discovered Price</a> </td>
</tr>
<tr>
<td style="width: 214px;">
<a href="https://www.smartkarma.com/entities/adani-power-ltd" target="_blank" data-smartkarma-citation="entities:247:1" rel="noopener">Adani Power Ltd (ADANI IN)</a> </td>
<td style="width: 489px;">
<a href="https://www.smartkarma.com/insights/adani-power-the-next-delisting-exit-offer" target="_blank" data-smartkarma-citation="insights:39894" rel="noopener">Adani Power - The Next Delisting/Exit Offer?</a> </td>
</tr>
<tr>
<td style="width: 214px;">
<a href="https://www.smartkarma.com/entities/hexaware-technologies-ltd" target="_blank" data-smartkarma-citation="entities:7882:1" rel="noopener">Hexaware Technologies (HEXW IN)</a> </td>
<td style="width: 489px;">
<a href="https://www.smartkarma.com/insights/hexaware-delisting-proposal-this-could-go-higher" target="_blank" data-smartkarma-citation="insights:40116" rel="noopener">Hexaware Delisting Proposal - This Could Go Higher</a> </td>
</tr>
</tbody></table>

This insight is meant to provide a hands-on guide for investors looking at the Indian Delisting Offer situations of Vedanta Ltd (VEDL IN), Hexaware Technologies (HEXW IN), and Adani Power Ltd (ADANI IN).  It shows the timing, the tools used to observe the reverse book build in real-time, and allows one to get a "practice run" at the larger deals going forward.Almost a year ago, a smallcap Indian company called INEOS Styrolution India Limited (INEOS IN), 75%-owned by closely-held UK petrochemicals powerhouse INEOS, announced that INEOS was interested in taking it private. INEOS, which was created as a spinoff from Inspec by chemical engineer and private equity fund director James Ratcliffe (who was at the time a co-founder of Inspec) in the late 1980s as a way to spin off Inspec's ethylene oxide facility in Belgium that it had purchased earlier from BP, grew quickly by taking out the commodity chemical businesses from various refiners and petrochem companies. 30+yrs later, Mr Ratcliffe is a billionaire 20x over and INEOS reportedly has annual turnover approaching US$100bn. Just two weeks ago, INEOS signed a deal to buy out BP's remaining petrochemicals businesses for US$5bn.The announcement on 16 August 2019 was made whereby the Promoter had said to the Board of the Indian unit that it was interested in buying out the 4.4mm shares it did not hold, and delisting the company. The Board appointed a merchant banker which did a due diligence report, and the a week later the Board gave its approval. The postal ballot started a week later at the end of August, and results were known on 1 October 2019, with minority shareholders agreeing to run a Delisting Offer process. Then things went quiet. As noted in Indian Delisting/Exit Offers - Know Your Process and The Games Played, the company has one year from the shareholder approval to get approval from the Exchange. That request went in a short while ago and last week INEOS Styrolution India Limited announced that the NSE and BSE had given their in-principle approval.  This is a smallcap situation - the float is worth less than US$50mm - but for those watching the delisting offers of Vedanta Ltd (VEDL IN), Hexaware Technologies (HEXW IN), and Adani Power Ltd (ADANI IN), it is probably worthwhile absorbing the details because they are out in the open. Much more below the fold. 
Relevant Insights To Date
General Coverage of the Event Type

Indian M&amp;A Guide

Quiddity India M&amp;A Guide 2019 


Overview of Delisting Offers

Indian Delisting/Exit Offers - Know Your Process and The Games Played 


Overview of Failed Exit Offers

Failed Exit Offers in India: Lessons for VEDL, ADANI, and HEXW? 


Specific Single Stock Situations Live Now


Vedanta Ltd (VEDL IN) 

Vedanta Delisting Offer - How It Goes From Here 



Vedanta Ltd (VEDL IN) 

Vedanta Delisting Offer: Opportunities and Timing 



Vedanta Ltd (VEDL IN) 

Vedanta Buyout Loan = HUGE Hindustan Zinc Div But May Change Vedanta RBB Timing 



Vedanta Ltd (VEDL IN) 

Putting Sightlines on the Vedanta Discovered Price 



Adani Power Ltd (ADANI IN) 

Adani Power - The Next Delisting/Exit Offer? 



Hexaware Technologies (HEXW IN) 

Hexaware Delisting Proposal - This Could Go Higher 



INEOS Styrolution India - A Tiny Delisting to Watch How the RBB Sausage Is Made

India

Styrenix Performance Materials Limited manufactures absolac and absolan resins. The Company offers its products for manufacturing of home appliances, automobiles, consumer durables, and business machines. Styrenix Performance Materials operates worldwide.

Styrenix Performance Materials (STYRENIX IN)

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Styrenix Performance Materials (STYRENIX IN)

INEOS Styrolution - Looks Like We Have a Price. Now We Wait For The Promoter's Answer

The Reverse Book Build process for the Delisting Offer of INEOS Styrolution India Limited (INEOS IN) is now complete. The Offer-to-Buy Acquisition...

Travis Lundy

INEOS Styrolution India - A Tiny Delisting to Watch How the RBB Sausage Is Made

This insight is meant to provide a hands-on guide for investors looking at the Indian Delisting Offer situations of Vedanta Ltd (VEDL IN), Hexaware...

Travis Lundy

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)