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

Bright Smart Securities & Commodities / Event-Driven

Bright Smart Securities & Commodities (1428 HK)

<ul>
<li>
<a href="https://www.smartkarma.com/entities/bright-smart-securities-and" target="_blank" data-smartkarma-citation="entities:20511:1" rel="noopener">Bright Smart Securities And (1428 HK)</a>'s Chairman entered a SPA with Ant Holdco to sell his 50.55% stake at HK$3.28, a 7.5% premium to the last close.</li>
<li>The SPA completion requires approval from both the NDRC and SFC. Unusually, Ant has the option of extending the long-stop date, reflecting a possibility of extra scrutiny by the regulators.</li>
<li>Under Rule 26.1 of the Code, upon completion, Ant will be required to make an unconditional mandatory cash offer at HK$3.28. The MGO price is final and a knockout offer.  </li>
</ul>



Bright Smart Securities And (1428 HK)'s Chairman entered a SPA with Ant Holdco to sell his 50.55% stake at HK$3.28, a 7.5% premium to the last close.
The SPA completion requires approval from both the NDRC and SFC. Unusually, Ant has the option of extending the long-stop date, reflecting a possibility of extra scrutiny by the regulators.
Under Rule 26.1 of the Code, upon completion, Ant will be required to make an unconditional mandatory cash offer at HK$3.28. The MGO price is final and a knockout offer.  


Bright Smart Securities (1428 HK): Ant’s Possible Unconditional MGO at HK$3.28

<ul>
<li>
<a href="https://www.smartkarma.com/entities/bright-smart-securities-and" target="_blank" data-smartkarma-citation="entities:20511:1" rel="noopener">Bright Smart Securities And (1428 HK)</a> is in a trading halt “pursuant to the Hong Kong Code on Takeovers and Mergers, which constitutes inside information of the Company.”</li>
<li>It is likely that Mr Lum, the founder and chairman, has entered a sale and purchase agreement to sell his controlling stake, which would trigger a mandatory general offer (MGO).   </li>
<li>The shares are at an all-time high and have a P/B multiple that is a material premium to peers. The MGO price is likely to be lower than last close.</li>
</ul>



Bright Smart Securities And (1428 HK) is in a trading halt “pursuant to the Hong Kong Code on Takeovers and Mergers, which constitutes inside information of the Company.”
It is likely that Mr Lum, the founder and chairman, has entered a sale and purchase agreement to sell his controlling stake, which would trigger a mandatory general offer (MGO).   
The shares are at an all-time high and have a P/B multiple that is a material premium to peers. The MGO price is likely to be lower than last close.


Bright Smart Securities (1428 HK): A Takeunder MGO?

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>On the 5th November, <a href="https://www.smartkarma.com/entities/get-nice-holdings-ltd" target="_blank" data-smartkarma-citation="entities:16415:1" rel="noopener">Get Nice Holdings (64 HK)</a> (GNH) <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/1105/2024110501858.pdf" target="_blank" rel="noopener">announced</a> a scrip Offer, by way of a Scheme, for 72.99%-held <a href="https://www.smartkarma.com/entities/get-nice-financial-group-ltd" target="_blank" data-smartkarma-citation="entities:29667:1" rel="noopener">Get Nice Financial Group Ltd (1469 HK)</a> (GNF).</li>
<li>With an implied scrip price &amp; divvy of HK$1.116/share, against a book value of HK1.736/share - and net cash of ~HK$1.00/share - this is probably being down too cheaply.</li>
<li>GNH's Circular is now <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2025/0102/2025010203495.pdf" target="_blank" rel="noopener">out</a>, with an EGM to be held on the 22nd Jan. GNF's Scheme Doc is expected to be dispatched one or before the 10th Feb. </li>
</ul>


On the 5th November, Get Nice Holdings (64 HK) (GNH) announced a scrip Offer, by way of a Scheme, for 72.99%-held Get Nice Financial Group Ltd (1469 HK) (GNF).
With an implied scrip price &amp; divvy of HK$1.116/share, against a book value of HK1.736/share - and net cash of ~HK$1.00/share - this is probably being down too cheaply.
GNH's Circular is now out, with an EGM to be held on the 22nd Jan. GNF's Scheme Doc is expected to be dispatched one or before the 10th Feb. 


Get Nice Financial (1469 HK): EGM Set For Get Nice (64 HK)'s Scrip Offer

<ul>
<li>Back on the 16 Sept 2020, <a href="https://www.smartkarma.com/entities/get-nice-holdings-ltd" target="_blank" data-smartkarma-citation="entities:16415:1" rel="noopener">Get Nice (64 HK)</a> (GNH) <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0916/2020091601148.pdf" target="_blank" rel="noopener">announced</a> Hung Hon Man (CEO), with 29.99%, had made a voluntary cash offer of HK$0.17/share. This was discussed <a href="https://skr.ma/pwGjX" target="_blank" rel="noopener">here</a>.  </li>
<li>Hung <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0924/2020092401389.pdf" target="_blank" rel="noopener">bought 0.04%</a> a week later, triggering an MGO. The Offer closed with Hung holding <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/1120/2020112000683.pdf" target="_blank" rel="noopener">61.32%</a>. A discounted downstream Offer for 72.99%-held <a href="https://www.smartkarma.com/entities/get-nice-financial-group-ltd" target="_blank" data-smartkarma-citation="entities:29667:1" rel="noopener">Get Nice Financial (1469 HK)</a> was also triggered.</li>
<li>Taking a leaf out of the <a href="https://www.smartkarma.com/entities/viva-goods-company-ltd" target="_blank" data-smartkarma-citation="entities:15864:1" rel="noopener">Viva Goods (933 HK)</a>/<a href="https://www.smartkarma.com/entities/bossini-international-holdings-limited" target="_blank" data-smartkarma-citation="entities:4085:1" rel="noopener">Bossini International Holdings (592 HK)</a> playbook, GNH has now <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/1105/2024110501848.pdf" target="_blank" rel="noopener">announced</a> a scrip Offer, by way of a Scheme, for Get Nice Financial.</li>
</ul>


Back on the 16 Sept 2020, Get Nice (64 HK) (GNH) announced Hung Hon Man (CEO), with 29.99%, had made a voluntary cash offer of HK$0.17/share. This was discussed here.  
Hung bought 0.04% a week later, triggering an MGO. The Offer closed with Hung holding 61.32%. A discounted downstream Offer for 72.99%-held Get Nice Financial (1469 HK) was also triggered.
Taking a leaf out of the Viva Goods (933 HK)/Bossini International Holdings (592 HK) playbook, GNH has now announced a scrip Offer, by way of a Scheme, for Get Nice Financial.


Get Nice Financial (1469 HK): Get Nice (64 HK)'s Scrip Offer

<ul>
<li>
<a href="https://www.smartkarma.com/entities/get-nice-financial-group-ltd" target="_blank" data-smartkarma-citation="entities:29667:1" rel="noopener">Get Nice Financial Group Ltd (1469 HK)</a>/GNF’s scheme offer from <a href="https://www.smartkarma.com/entities/get-nice-holdings-ltd" target="_blank" data-smartkarma-citation="entities:16415:1" rel="noopener">Get Nice Holdings (64 HK)</a>/GNH is at 4 GNH shares per GNF share + HK$0.50 scheme dividend.</li>
<li>The implied GNF offer value is HK$1.116, a 39.5% premium to the last close. The offer is conditional on the GNH/GNF shareholder approval, which is low risk</li>
<li>The share exchange ratio is attractive compared to historical price ratios, precedent transactions, and peer multiples. This is a done deal and is likely the first step towards privatising GNH.</li>
</ul>



Get Nice Financial Group Ltd (1469 HK)/GNF’s scheme offer from Get Nice Holdings (64 HK)/GNH is at 4 GNH shares per GNF share + HK$0.50 scheme dividend.
The implied GNF offer value is HK$1.116, a 39.5% premium to the last close. The offer is conditional on the GNH/GNF shareholder approval, which is low risk
The share exchange ratio is attractive compared to historical price ratios, precedent transactions, and peer multiples. This is a done deal and is likely the first step towards privatising GNH.


Get Nice Financial (1469 HK): Get Nice Holdings (64 HK) Share Exchange Offer

Hong Kong

Kingston Financial Group is a financial institution that provides services including securities and futures trading, corporate finance, and asset management. The company also operates in the hotel and casino sectors. It is headquartered in Hong Kong and was founded in 1996.

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Kingston Financial Group (KNGTF US)

Bright Smart Securities (1428 HK): Ant’s Possible Unconditional MGO at HK$3.28

The Chairman is selling out to Ant at a knockout price (HK$3.28). Completion will trigger an unconditional MGO. Timing is the key risk, which is...

Arun George

Bright Smart Securities (1428 HK): A Takeunder MGO?

It is likely that Mr Lum, the founder, has entered a sale and purchase agreement to sell his controlling stake, which would trigger an MGO.

Arun George

Get Nice Financial (1469 HK): EGM Set For Get Nice (64 HK)'s Scrip Offer

The more interesting bet is GNH (64 HK) at a 74% discount to NAV and 0.21x P/B, which will (should) be taken out next. That may be worth a punt.

David Blennerhassett

Get Nice Financial (1469 HK): Get Nice (64 HK)'s Scrip Offer

This is not a particularly liquid arb situation. I would avoid. If anything, GNH, at a 66% discount to NAV and 0.3x P/B, will probably be taken out...

David Blennerhassett

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Bright Smart Securities (1428 HK): Ant’s Possible Unconditional MGO at HK$3.28

The Chairman is selling out to Ant at a knockout price (HK$3.28). Completion will trigger an unconditional MGO. Timing is the key risk, which is...

Arun George

Bright Smart Securities (1428 HK): A Takeunder MGO?

It is likely that Mr Lum, the founder, has entered a sale and purchase agreement to sell his controlling stake, which would trigger an MGO.

Arun George

Get Nice Financial (1469 HK): EGM Set For Get Nice (64 HK)'s Scrip Offer

The more interesting bet is GNH (64 HK) at a 74% discount to NAV and 0.21x P/B, which will (should) be taken out next. That may be worth a punt.

David Blennerhassett

Get Nice Financial (1469 HK): Get Nice (64 HK)'s Scrip Offer

This is not a particularly liquid arb situation. I would avoid. If anything, GNH, at a 66% discount to NAV and 0.3x P/B, will probably be taken out...

David Blennerhassett

Get Nice Financial (1469 HK): Get Nice Holdings (64 HK) Share Exchange Offer

The share exchange ratio is attractive compared to historical price ratios, precedent transactions, and peer multiples. This is a done deal and is...

Arun George