Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Lansen Pharmaceutical Holdings Co, Ltd. / Event-Driven

Net cash to the tune of 85% of market cap - check.
The company has been exiting out of a PRC-listed entity, increasing its cash pile - check.
The chairman privatised a UK-listed entity earlier this year, which in turn, is the controlling shareholder of the company - check.
Said chairman has been aggressively increasing his stake, and is now just shy of 70%, up from ~53% in December last year - check.
The company is <a href="https://www.smartkarma.com/entities/lansen-pharmaceutical-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:10835:1" rel="noopener">Lansen Pharmaceutical Holdings Co, Ltd. (503 HK)</a>. It's not large, nor liquid. But it's cheap, and a likely privatisation play.
More below the fold.

Net cash to the tune of 85% of market cap - check.
The company has been exiting out of a PRC-listed entity, increasing its cash pile - check.
The chairman privatised a UK-listed entity earlier this year, which in turn, is the controlling shareholder of the company - check.
Said chairman has been aggressively increasing his stake, and is now just shy of 70%, up from ~53% in December last year - check.
The company is Lansen Pharmaceutical Holdings Co, Ltd. (503 HK). It's not large, nor liquid. But it's cheap, and a likely privatisation play.
More below the fold.

<ul>
<li>On the 17 September, specialty prescription drug manufacturer <a href="https://www.smartkarma.com/entities/lansen-pharmaceutical-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:10835:1" rel="noopener">Lansen Pharmaceutical Holdings Co, Ltd. (503 HK)</a>, a perennial takeover target, finally announced an Offer.</li>
<li>Wu Zhen Tao, NED and Chairman of Lansen, made an Offer for shares not indirectly held, of HK$1.80/share, by way of a Scheme, a 26.76% premium to last close.</li>
<li>Composite Doc is now out. Court Meeting is the 27th November. Expected last day of trading is the 28 Nov. 28 December payment. IFA says fair and reasonable. Looks done.</li>
</ul>


On the 17 September, specialty prescription drug manufacturer Lansen Pharmaceutical Holdings Co, Ltd. (503 HK), a perennial takeover target, finally announced an Offer.
Wu Zhen Tao, NED and Chairman of Lansen, made an Offer for shares not indirectly held, of HK$1.80/share, by way of a Scheme, a 26.76% premium to last close.
Composite Doc is now out. Court Meeting is the 27th November. Expected last day of trading is the 28 Nov. 28 December payment. IFA says fair and reasonable. Looks done.


Lansen Pharma (503 HK): 27th November Scheme Vote

<div>
In my short note <a href="https://skr.ma/prhHd" target="_blank" rel="noopener">Lansen Pharma (503 HK): This Is A Buy</a> on the 14 May, I recommended buying <a href="https://www.smartkarma.com/entities/lansen-pharmaceutical-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:10835:1" rel="noopener">Lansen Pharmaceutical Holdings Co, Ltd. (503 HK)</a> when it was trading at $1.97. It's now $2.63/share.
Since that insight, Lansen has announced it will further sell its remaining stake in <a href="https://www.smartkarma.com/entities/zhejiang-starry-pharmaceut-a" target="_blank" data-smartkarma-citation="entities:25327:1" rel="noopener">Zhejiang Starry Pharmaceut-A (603520 CH)</a>.
And after getting shareholder approval at its EGM, Lansen bought back 1mn shares - paying between $2.23-$2.22/share. Shares promptly popped ~13% following news of that buyback.
That buyback serves to increase the chairman's stake, which is currently around 70%. 
This huge share price run-up in the last six months still has legs. 
</div>
<div>
More below the fold.
</div>


In my short note Lansen Pharma (503 HK): This Is A Buy on the 14 May, I recommended buying Lansen Pharmaceutical Holdings Co, Ltd. (503 HK) when it was trading at $1.97. It's now $2.63/share.
Since that insight, Lansen has announced it will further sell its remaining stake in Zhejiang Starry Pharmaceut-A (603520 CH).
And after getting shareholder approval at its EGM, Lansen bought back 1mn shares - paying between $2.23-$2.22/share. Shares promptly popped ~13% following news of that buyback.
That buyback serves to increase the chairman's stake, which is currently around 70%. 
This huge share price run-up in the last six months still has legs. 


More below the fold.


Lansen Pharma (503 HK): This Is Still A Buy

<ul>
<li>Specialty prescription drug manufacturer<a href="https://www.smartkarma.com/entities/lansen-pharmaceutical-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:10835:1" rel="noopener"> Lansen Pharmaceutical Holdings Co, Ltd. (503 HK)</a> has been a perennial takeover target. And now we have an Offer.</li>
<li>Wu Zhen Tao, NED and Chairman of Lansen, has made an Offer for shares not indirectly held, of HK$1.80/share, by way of a Scheme, a 26.76% premium to last close.   </li>
<li>This looks done. Get involved if small-cap illiquid arbs are your thing. </li>
</ul>


Specialty prescription drug manufacturer Lansen Pharmaceutical Holdings Co, Ltd. (503 HK) has been a perennial takeover target. And now we have an Offer.
Wu Zhen Tao, NED and Chairman of Lansen, has made an Offer for shares not indirectly held, of HK$1.80/share, by way of a Scheme, a 26.76% premium to last close.   
This looks done. Get involved if small-cap illiquid arbs are your thing. 


Lansen Pharma (503 HK): The Chairman Makes An Offer

<ul>
<li>On the 17th January, <a href="https://www.smartkarma.com/entities/weiqiao-textile-co" target="_blank" data-smartkarma-citation="entities:3690:1" rel="noopener">Weiqiao Textile Co (2698 HK)</a> announced the pre-conditions - regulatory approvals from NDRC, MoC and SAFE - had been fulfilled. </li>
<li>The <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0123/2024012300013.pdf" target="_blank" rel="noopener">Composite Document</a> was dispatched this morning (23 January), with an 8th March EGM, and expected payment on or before the 28 March, bang in line with my estimate.  </li>
<li>Prudence has upped its stake to <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0122/2024012200327.pdf" target="_blank" rel="noopener">10.47%</a>.  IF they were intending to block, they'd stop at just over 10%. Buying any more shares &gt;10% is simply a waste of money.</li>
</ul>


On the 17th January, Weiqiao Textile Co (2698 HK) announced the pre-conditions - regulatory approvals from NDRC, MoC and SAFE - had been fulfilled. 
The Composite Document was dispatched this morning (23 January), with an 8th March EGM, and expected payment on or before the 28 March, bang in line with my estimate.  
Prudence has upped its stake to 10.47%.  IF they were intending to block, they'd stop at just over 10%. Buying any more shares &gt;10% is simply a waste of money.


Weiqiao Textile (2698 HK): 8th March Vote. Payment Late March

China

Lansen Pharmaceutical holdings Ltd. is a pharmaceutical holding company. The Company's subsidiaries produce and sell rheumatic specialty prescription western pharmaceuticals in the Peoples Republic of China.

Lansen Pharmaceutical Holdings Co, Ltd. (503 HK)

Lansen Pharmaceutical Holdings Co, Ltd. (503 HK)

Lansen Pharma (503 HK): This Is A Buy

Net cash accounts for 84.6% of market cap. The offer for its parent implied a value of $3.82/share. The core underlying business of Lansen was...

David Blennerhassett

Lansen Pharma (503 HK): 27th November Scheme Vote

It's an okay premium to last close, but enough for the Offer to get up. Trading wide at a 7.1%/51.1% gross/annualised spread. If small-cap,...

David Blennerhassett

Lansen Pharma (503 HK): This Is Still A Buy

The privatisation of its parent implied a value of $4.28/share for Lansen. I think this still has more to run from here.

David Blennerhassett

Lansen Pharma (503 HK): The Chairman Makes An Offer

There's enough here for the Offer to get up. Terms have been declared final. Long-term shareholders would have also benefitted from the HK$1.55...

David Blennerhassett

Weiqiao Textile (2698 HK): 8th March Vote. Payment Late March

Weiqiao Textile is currently trading at a gross/annualised spread of 2.0%/12.0%. That's okay. Getting tight. This looks pretty clean here.

David Blennerhassett