Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Construction subcontractor <a href="https://www.smartkarma.com/entities/lotus-horizon-holdings-limited" target="_blank" data-smartkarma-citation="entities:49193:1" rel="noopener">Lotus Horizon (6063 HK)</a> is <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2026/0903/2026090300013.pdf" target="_blank" rel="noopener">suspended</a> pursuant to the Hong Kong Code on Takeovers and Mergers.</li>
<li>I expect Lotus will follow in <a href="https://www.smartkarma.com/entities/wk-group-holdings-limited" target="_blank" data-smartkarma-citation="entities:49355:1" rel="noopener">WK Group (2535 HK)</a> and <a href="https://www.smartkarma.com/entities/superland-group-holdings-limited" target="_blank" data-smartkarma-citation="entities:55388:1" rel="noopener">Superland Group Holdings (368 HK)</a>'s footsteps, whereby the controlling family exits, triggering an unconditional takeunder. </li>
<li>Loss-Making Lotus is a total bubble stock, up 457% since Feb , 750%+ in 12 months, and trading at 20x P/B. Are shell companies and reverse takeovers making a comeback?
</li>
</ul>


Construction subcontractor Lotus Horizon (6063 HK) is suspended pursuant to the Hong Kong Code on Takeovers and Mergers.
I expect Lotus will follow in WK Group (2535 HK) and Superland Group Holdings (368 HK)'s footsteps, whereby the controlling family exits, triggering an unconditional takeunder. 
Loss-Making Lotus is a total bubble stock, up 457% since Feb , 750%+ in 12 months, and trading at 20x P/B. Are shell companies and reverse takeovers making a comeback?



Lotus (6063 HK) Is A Bubble Stock. Expect An Unconditional Takeunder

<ul>
<li>We know that Bain knew that their mid-September overbid for <a href="https://www.smartkarma.com/entities/kakaku-com-inc" target="_blank" data-smartkarma-citation="entities:7408:1" rel="noopener">Kakaku.com Inc (2371 JP)</a> did not meet the so-called KDDI Threshold, yet they made that bid anyway (¥3,720 vs EQT's ¥3,680).</li>
<li>IF <a href="https://www.smartkarma.com/entities/sankei-real-estate-inc" target="_blank" data-smartkarma-citation="entities:35239:1" rel="noopener">Sankei Real Estate (2972 JP)</a> trades wide, consider going long the arb, but generally, need to participate unless it does trade wide. There're other more interesting deals out there.</li>
<li>Despite the lower-than-expected bid optics compared to prior negotiations, <a href="https://www.smartkarma.com/entities/renew-energy-global-plc-class-a" target="_blank" data-smartkarma-citation="entities:37038:1" rel="noopener">ReNew Energy Global (RNW US)</a>'s Offer looks done. All ducks are lined up. Just a question of timing on regulatory approvals.</li>
</ul>


We know that Bain knew that their mid-September overbid for Kakaku.com Inc (2371 JP) did not meet the so-called KDDI Threshold, yet they made that bid anyway (¥3,720 vs EQT's ¥3,680).
IF Sankei Real Estate (2972 JP) trades wide, consider going long the arb, but generally, need to participate unless it does trade wide. There're other more interesting deals out there.
Despite the lower-than-expected bid optics compared to prior negotiations, ReNew Energy Global (RNW US)'s Offer looks done. All ducks are lined up. Just a question of timing on regulatory approvals.


Last Week In Event SPACE: Kakaku.com, Sankei Real Estate, ReNew Energy Global, Korea Aerospace Ind

Trio Industrial Electronics Group / Event-Driven

Trio Industrial Electronics Group (1710 HK)

<ul>
<li>In the past two months, <a href="https://www.smartkarma.com/entities/lotus-horizon-holdings-limited" target="_blank" data-smartkarma-citation="entities:49193:1" rel="noopener">Lotus Horizon (6063 HK)</a>, <a href="https://www.smartkarma.com/entities/wk-group-holdings-limited" target="_blank" data-smartkarma-citation="entities:49355:1" rel="noopener">WK (2535 HK)</a>, and <a href="https://www.smartkarma.com/entities/superland-group-holdings-limited" target="_blank" data-smartkarma-citation="entities:55388:1" rel="noopener">Superland (368 HK)</a> have been subject to conditional/unconditional (massive) takeunders. Expect the same for <a href="https://www.smartkarma.com/entities/kfm-kingdom-holdings-ltd" target="_blank" data-smartkarma-citation="entities:10030:1" rel="noopener">KFM (3816 HK)</a>.</li>
<li>Now fellow contractor/manufacturer, <a href="https://www.smartkarma.com/entities/trio-industrial-electronics-group-limited" target="_blank" data-smartkarma-citation="entities:35764:1" rel="noopener">Trio Industrial Electronics Group (1710 HK)</a>, is suspended pursuant to the Hong Kong Code on Takeovers and Mergers. Its share price is up ~567% since June-end.</li>
<li>Not a great look for the exchange. I've reached out to the HKEx to get their read.</li>
</ul>


In the past two months, Lotus Horizon (6063 HK), WK (2535 HK), and Superland (368 HK) have been subject to conditional/unconditional (massive) takeunders. Expect the same for KFM (3816 HK).
Now fellow contractor/manufacturer, Trio Industrial Electronics Group (1710 HK), is suspended pursuant to the Hong Kong Code on Takeovers and Mergers. Its share price is up ~567% since June-end.
Not a great look for the exchange. I've reached out to the HKEx to get their read.


More Contractor Craziness. The HKEx Needs To Open An Investigation

<ul>
<li>You probably have downside to ¥3,720 if EQT's bid lapses. Downside may be limited to ¥3,760 if <a href="https://www.smartkarma.com/entities/kakaku-com-inc" target="_blank" data-smartkarma-citation="entities:7408:1" rel="noopener">Kakaku.com (2371 JP)</a> convinces Bain to bid up to negotiate with KDDI.</li>
<li>
<a href="https://www.smartkarma.com/entities/northern-star-resources-ltd" target="_blank" data-smartkarma-citation="entities:4243:1" rel="noopener">Northern Star Resources (NST AU)</a> extends an olive branch to Elliott, (temporarily?) avoiding a proxy fight.</li>
<li>If one wants SBI to raise the price for<a href="https://www.smartkarma.com/entities/base-inc" target="_blank" data-smartkarma-citation="entities:28353:1" rel="noopener"> (4477 JP)</a>, it behooves the market to trade at ¥345 again. Get long, or get longer.</li>
</ul>


You probably have downside to ¥3,720 if EQT's bid lapses. Downside may be limited to ¥3,760 if Kakaku.com (2371 JP) convinces Bain to bid up to negotiate with KDDI.

Northern Star Resources (NST AU) extends an olive branch to Elliott, (temporarily?) avoiding a proxy fight.
If one wants SBI to raise the price for (4477 JP), it behooves the market to trade at ¥345 again. Get long, or get longer.


Last Week In Event SPACE: Kakaku, Northern Star Resources, BASE Inc, Reliance Worldwide, Cloudbreak

<ul>
<li>Last week,<a href="https://www.smartkarma.com/entities/lotus-horizon-holdings-limited" target="_blank" data-smartkarma-citation="entities:49193:1" rel="noopener"> Lotus Horizon (6063 HK)</a> followed in fellow-contractors <a href="https://www.smartkarma.com/entities/wk-group-holdings-limited" target="_blank" data-smartkarma-citation="entities:49355:1" rel="noopener">WK Group (2535 HK)</a> and <a href="https://www.smartkarma.com/entities/superland-group-holdings-limited" target="_blank" data-smartkarma-citation="entities:55388:1" rel="noopener">Superland Group Holdings (368 HK)</a>'s footsteps, whereby the controlling family exited, triggering an unconditional (massive) takeunder. </li>
<li>Now contractor <a href="https://www.smartkarma.com/entities/kfm-kingdom-holdings-ltd" target="_blank" data-smartkarma-citation="entities:10030:1" rel="noopener">KFM Kingdom (3816 HK)</a> is suspended pursuant to the Hong Kong Code on Takeovers and Mergers. Its share price is up ~700% since January.</li>
<li>Controlling shareholders exiting given protracted headwinds for Hong Kong’s private residential and commercial property markets makes sense. Less clear are these irrational price movements before a deal is struck.</li>
</ul>


Last week, Lotus Horizon (6063 HK) followed in fellow-contractors WK Group (2535 HK) and Superland Group Holdings (368 HK)'s footsteps, whereby the controlling family exited, triggering an unconditional (massive) takeunder. 
Now contractor KFM Kingdom (3816 HK) is suspended pursuant to the Hong Kong Code on Takeovers and Mergers. Its share price is up ~700% since January.
Controlling shareholders exiting given protracted headwinds for Hong Kong’s private residential and commercial property markets makes sense. Less clear are these irrational price movements before a deal is struck.


Something Is Seriously Amiss As Shares In KFM Kingdom Are Now Suspended

Hong Kong

Lotus Horizon Holdings Limited is an investment holding company that provides construction engineering services. It specializes in the design, supply, and installation of facade works and building metal finishing works for commercial, residential, and public facilities in Hong Kong. The company was incorporated in 2018 and is headquartered in Sha Tin, Hong Kong.

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Lotus Horizon (6063 HK)

Lotus (6063 HK) Is A Bubble Stock. Expect An Unconditional Takeunder

Expect a takeunder. Loss-making Lotus is a total bubble stock, up 457% since Feb , 750%+ in 12 months, and trading at 20x P/B. Are shell comapanies...

David Blennerhassett

Last Week In Event SPACE: Kakaku.com, Sankei Real Estate, ReNew Energy Global, Korea Aerospace Ind

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More Contractor Craziness. The HKEx Needs To Open An Investigation

Trio's' shares are suspended, so there's nothing to do. You could scope out other small‑cap industrial with a concentrated ownership. But I'm...

David Blennerhassett

Last Week In Event SPACE: Kakaku, Northern Star Resources, BASE Inc, Reliance Worldwide, Cloudbreak

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

Something Is Seriously Amiss As Shares In KFM Kingdom Are Now Suspended

KFM's' shares are suspended, so nothing to do right now. You could scope out other small‑cap industrial with a concentrated ownership. I'm betting...

David Blennerhassett

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