Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

China Merchants China Direct Investments / Event-Driven

<ul>
<li>Activist Argyle Street's approach to closed-end investment company <a href="https://www.smartkarma.com/entities/china-merchants-china-direct-investments" target="_blank" data-smartkarma-citation="entities:6862:1" rel="noopener">China Merchants China Direct Investments (133 HK)</a> (CMCDI) has a certain David Webb-like quality.</li>
<li>Apart from the deep value angle, the analysis of director Elizabeth Kan's potential conflict of interest is particularly insightful. Argle will vote against Kan's re-election at the 20th June AGM</li>
<li>Given this upcoming vote, as I've done with <a href="https://www.smartkarma.com/entities/giordano-international-ltd" target="_blank" data-smartkarma-citation="entities:13899:1" rel="noopener">Giordano (709 HK)</a> and <a href="https://www.smartkarma.com/entities/l-occitane-international-sa" target="_blank" data-smartkarma-citation="entities:6772:1" rel="noopener">L'Occitane (973 HK)</a> previously, it's useful to investigate the lesser-known shareholder register, a byproduct of investigative disclosure reports.</li>
</ul>


Activist Argyle Street's approach to closed-end investment company China Merchants China Direct Investments (133 HK) (CMCDI) has a certain David Webb-like quality.
Apart from the deep value angle, the analysis of director Elizabeth Kan's potential conflict of interest is particularly insightful. Argle will vote against Kan's re-election at the 20th June AGM
Given this upcoming vote, as I've done with Giordano (709 HK) and L'Occitane (973 HK) previously, it's useful to investigate the lesser-known shareholder register, a byproduct of investigative disclosure reports.


CMCDI (133 HK): AGM Outcome May Provide Another Leg-Up

Analyst

Steve

Equity Bottom-Up

<ul>
<li>Samsonite is similar to another HK-listed company that I have written extensively about, <a href="https://www.smartkarma.com/entities/l-occitane-international-sa" target="_blank" data-smartkarma-citation="entities:6772:1" rel="noopener">L'Occitane (973 HK)</a>, in that they are both western brands selling globally but somehow listed on HKSE.   </li>
<li>The company announced a share buyback program this morning.  The company targets to repurchase up to USD200m, which is around 4.3% of the total shares outstanding.</li>
<li>With the announcement of the share buyback plan, it offers an attractive entry point for the stock, as I like the fundamentals of the company and the valuation is cheap. </li>
</ul>


Samsonite is similar to another HK-listed company that I have written extensively about, L'Occitane (973 HK), in that they are both western brands selling globally but somehow listed on HKSE.   
The company announced a share buyback program this morning.  The company targets to repurchase up to USD200m, which is around 4.3% of the total shares outstanding.
With the announcement of the share buyback plan, it offers an attractive entry point for the stock, as I like the fundamentals of the company and the valuation is cheap. 


Samsonite (1910 HK):  Time To Revisit After >20% Pullback + Just Announced Share Buyback

<ul>
<li>Back in February this year, various media sources reported that the key shareholders of warehouse/fund management play <a href="https://www.smartkarma.com/entities/esr-group-ltd" target="_blank" data-smartkarma-citation="entities:27983:1" rel="noopener">ESR Group (1821 HK)</a>, were exploring options, including a privatisation.</li>
<li>Long-Term holders Warburg Pincus and Canadian pension fund OMERS hold 14% and 10.7% respectively. ESR co-founders/directors Jeffrey Shen, Stuart Gibson, Charles de Portes, and Hwee Chiang collectively hold another ~23%.</li>
<li>Shares in ESR were <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0513/2024051300060.pdf" target="_blank" rel="noopener">suspended</a> this morning "pursuant to the Hong Kong Code on Takeovers and Mergers".</li>
</ul>


Back in February this year, various media sources reported that the key shareholders of warehouse/fund management play ESR Group (1821 HK), were exploring options, including a privatisation.
Long-Term holders Warburg Pincus and Canadian pension fund OMERS hold 14% and 10.7% respectively. ESR co-founders/directors Jeffrey Shen, Stuart Gibson, Charles de Portes, and Hwee Chiang collectively hold another ~23%.
Shares in ESR were suspended this morning "pursuant to the Hong Kong Code on Takeovers and Mergers".


<ul>
<li>On the 11th April, <a href="https://www.smartkarma.com/entities/shandong-fengxiang-co-ltd-h" target="_blank" data-smartkarma-citation="entities:29164:1" rel="noopener">Shandong Fengxiang (9977 HK)</a> announced a $2.00/share Offer, by way of a pre-conditional Merger by Absorption, from PAG.</li>
<li>Those pre-conditions (NDRC, Ministry of Commerce, and SAFE) have now been <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2025/0703/2025070301828.pdf" target="_blank" rel="noopener">satisfied</a>.  The Composite Doc is expected to be dispatched no later than 11 July.</li>
<li>This Offer is a Merger by Absorption incorporating a Scheme-like vote. There is no tendering condition. This is done. I estimate payment the second week of September. </li>
</ul>


On the 11th April, Shandong Fengxiang (9977 HK) announced a $2.00/share Offer, by way of a pre-conditional Merger by Absorption, from PAG.
Those pre-conditions (NDRC, Ministry of Commerce, and SAFE) have now been satisfied.  The Composite Doc is expected to be dispatched no later than 11 July.
This Offer is a Merger by Absorption incorporating a Scheme-like vote. There is no tendering condition. This is done. I estimate payment the second week of September. 


Fengxiang (9977 HK): Pre-Cons Done. Possible Payment Mid-September

<ul>
<li>In an unusual move, the Offeror, PAG, and 59.42% shareholder of <a href="https://www.smartkarma.com/entities/shandong-fengxiang-co-ltd-h" target="_blank" data-smartkarma-citation="entities:29164:1" rel="noopener">Shandong Fengxiang (9977 HK)</a>, has opted not to provide a scrip alternative, despite satisfying conditions to do so. </li>
<li>The scrip option condition - not less than 0.5% of shares out expressing interest - was satisfied on the 12th May. Therefore at least 7.9mn shares got snubbed.</li>
<li>Evidently PAG reckons the support for the scrip is not worth the trouble. Nor critical in mass to disrupt the Offer. </li>
</ul>


In an unusual move, the Offeror, PAG, and 59.42% shareholder of Shandong Fengxiang (9977 HK), has opted not to provide a scrip alternative, despite satisfying conditions to do so. 
The scrip option condition - not less than 0.5% of shares out expressing interest - was satisfied on the 12th May. Therefore at least 7.9mn shares got snubbed.
Evidently PAG reckons the support for the scrip is not worth the trouble. Nor critical in mass to disrupt the Offer. 


Fengxiang (9977 HK): PAG Invites Dissent After Scrapping Scrip Alternative

Hong Kong

L'Occitane International S.A. is a global, natural and organic ingredient based cosmetics and well-being products enterprise.  The Company designs, manufactures and markets a wide range of cosmetics and well-being products based on natural and organic ingredients sourced principally from or near Provence.

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L'Occitane (973 HK)

CMCDI (133 HK): AGM Outcome May Provide Another Leg-Up

CMCDI is cheap. If small, illiquid names, with a activism angle are your thing, pick up shares here. Keep an eye on the AGM. If Kan is booted, this...

David Blennerhassett

ESR Group (1821 HK): Offer Musings

As it expands throughout the region, it is arguable ESR has been unfairly penalised by HKEx's protracted bear run. A move away from the HKEx does...

David Blennerhassett

Fengxiang (9977 HK): Pre-Cons Done. Possible Payment Mid-September

This appears done. However this iilliquid - and Hong Kong has seen two failed small-cap Schemes recently. Plus PAG is inviting dissent after...

David Blennerhassett

Fengxiang (9977 HK): PAG Invites Dissent After Scrapping Scrip Alternative

Evidently PAG reckons the support for the scrip is not worth the trouble. Nor critical in mass to disrupt the Offer. If illiquid arbs are your...

David Blennerhassett

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

CMCDI (133 HK): AGM Outcome May Provide Another Leg-Up

CMCDI is cheap. If small, illiquid names, with a activism angle are your thing, pick up shares here. Keep an eye on the AGM. If Kan is booted, this...

David Blennerhassett

Samsonite (1910 HK): Time To Revisit After >20% Pullback + Just Announced Share Buyback

Samsonite is similar to another HK-listed company that I have written extensively about, L'Occitane (973 HK). The company announced a share...

Steve

ESR Group (1821 HK): Offer Musings

As it expands throughout the region, it is arguable ESR has been unfairly penalised by HKEx's protracted bear run. A move away from the HKEx does...

David Blennerhassett

Fengxiang (9977 HK): Pre-Cons Done. Possible Payment Mid-September

This appears done. However this iilliquid - and Hong Kong has seen two failed small-cap Schemes recently. Plus PAG is inviting dissent after...

David Blennerhassett

Fengxiang (9977 HK): PAG Invites Dissent After Scrapping Scrip Alternative

Evidently PAG reckons the support for the scrip is not worth the trouble. Nor critical in mass to disrupt the Offer. If illiquid arbs are your...

David Blennerhassett