Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Kingswood Enterprise Co., Ltd. / Event-Driven

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<p>Wuhu Chuheng Investment, the second-largest shareholder in <a href="https://www.smartkarma.com/entities/anhui-xinke-new-materials-co-ltd" target="_blank" data-smartkarma-citation="entities:18225:1" rel="noopener">Kingswood (600255 CH)</a> with 2.30% of shares out, is seeking to raise its stake to 15.00% via a <a href="http://www.sse.com.cn/disclosure/listedinfo/announcement/c/2020-06-03/600255_20200603_5.pdf" target="_blank" rel="noopener">partial Tender Offer</a>, in an RMB269.6mn (~US$38mn) transaction.</p>
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<p>The Tender Offer is RMB1.20/share, a ~13% premium to the undisturbed close. The minimum pro-ration is 13.05%. </p>
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<p>Sans a punchy premium, the low pro-ration appears unattractive.  However, recent partial Offers in China have shown remarkably high pro-rations. That's worth a second look.  And Kingswood is relatively liquid.</p>
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<p>More below the fold. Plus <em><strong>Ye Olde Arbe Griddes</strong></em>. </p>
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Wuhu Chuheng Investment, the second-largest shareholder in Kingswood (600255 CH) with 2.30% of shares out, is seeking to raise its stake to 15.00% via a partial Tender Offer, in an RMB269.6mn (~US$38mn) transaction.


The Tender Offer is RMB1.20/share, a ~13% premium to the undisturbed close. The minimum pro-ration is 13.05%. 


Sans a punchy premium, the low pro-ration appears unattractive.  However, recent partial Offers in China have shown remarkably high pro-rations. That's worth a second look.  And Kingswood is relatively liquid.


More below the fold. Plus Ye Olde Arbe Griddes. 


Kingswood Enterprise (600255 CH): Partial Offer

China

Kingswood Enterprise Co., Ltd. develops and manufactures a variety of advanced materials.  The Company's products include rare earth copper poles, rare earth alloy copper belts, ceramic materials and products, irradiation special cables, and other related products.

Kingswood Enterprise Co., Ltd. (600255 CH)

Kingswood Enterprise (600255 CH): Partial Offer

Wuhu Chuheng Investment, the second-largest shareholder in Kingswood (600255 CH) with 2.30% of shares out, is seeking to raise its stake to 15.00%...

David Blennerhassett