Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

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<p>On the 3 June, port operator and utility play <a href="https://www.smartkarma.com/entities/mmc-corp-bhd" target="_blank" data-smartkarma-citation="entities:9776:1" rel="noopener">MMC Corp Bhd (MMC MK)</a> <a href="https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3163886" target="_blank" rel="noopener">announced</a> Seaport Terminal (Johore) Sdn Bhd, a wholly-owned entity of  Tan Sri Syed Mokhtar Albukhary, had made an Offer for all shares not owned at RM2.00/share, a premium to last close of 70.94%., and a price last cleared back in January 2018.</p>
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<p>The Offer is being done via a selective capital reduction and repayment (SCR) exercise. Seaport Terminal owns 51.76% of MMC.  </p>
<p>This deal looks to be ring-fenced by Mokhtar. The big question mark is on timing. </p>
<p>I looked at 10 SCRs over the past thirteen years, the analysis of which suggests this may be wrapped up around mid-late November. </p>
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<p>More below the fold.</p>
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On the 3 June, port operator and utility play MMC Corp Bhd (MMC MK) announced Seaport Terminal (Johore) Sdn Bhd, a wholly-owned entity of  Tan Sri Syed Mokhtar Albukhary, had made an Offer for all shares not owned at RM2.00/share, a premium to last close of 70.94%., and a price last cleared back in January 2018.


The Offer is being done via a selective capital reduction and repayment (SCR) exercise. Seaport Terminal owns 51.76% of MMC.  
This deal looks to be ring-fenced by Mokhtar. The big question mark is on timing. 
I looked at 10 SCRs over the past thirteen years, the analysis of which suggests this may be wrapped up around mid-late November. 


More below the fold.


MMC Corp (MMC MK): Let's Talk About Timing

Malaysia Airports Holdings / Event-Driven

<ul>
<li>Khazanah Nasional, the EPF,  the Abu Dhabi Investment Authority, and Global Infrastructure Partners, are offering to buy all shares not already owned in <strong><a href="https://www.smartkarma.com/entities/malaysia-airports-holdings-bhd" target="_blank" data-smartkarma-citation="entities:117:1" rel="noopener">Malaysia Airports Holdings (MAHB MK)</a></strong> at RM11.00/share.</li>
<li>The pre-conditional voluntary Offer price is a 5.77% premium to last close; but a life-time high. The Offeror consortium collectively holds 41.22% of shares out.</li>
<li>The pre-cons include regulatory approvals (in Malaysia, Turkey, Saudi Arabia, and Egypt). The Offer is subject to a 90% acceptance condition; which may be reduced. </li>
</ul>


Khazanah Nasional, the EPF,  the Abu Dhabi Investment Authority, and Global Infrastructure Partners, are offering to buy all shares not already owned in Malaysia Airports Holdings (MAHB MK) at RM11.00/share.
The pre-conditional voluntary Offer price is a 5.77% premium to last close; but a life-time high. The Offeror consortium collectively holds 41.22% of shares out.
The pre-cons include regulatory approvals (in Malaysia, Turkey, Saudi Arabia, and Egypt). The Offer is subject to a 90% acceptance condition; which may be reduced. 


Business On The Fly: Malaysia Airports (MAHB MK)'s RM11.00/Share Offer

Beijing Capital Land Ltd H / Event-Driven

<p>At long last - a summary of M&amp;A spreads (on deals discussed on Smartkarma) across Asia-Pacific.</p>
<p>I number 32, mostly firm, deals around the region.</p>
<p>This insight provides a quick summary of gross/annualised (where possible) spreads as at the last trading date, and how those spreads have changed over the last week; plus the next hard events over the coming weeks</p>
<p>More below the fold.</p>

At long last - a summary of M&amp;A spreads (on deals discussed on Smartkarma) across Asia-Pacific.
I number 32, mostly firm, deals around the region.
This insight provides a quick summary of gross/annualised (where possible) spreads as at the last trading date, and how those spreads have changed over the last week; plus the next hard events over the coming weeks
More below the fold.

Asia-Pac Weekly Risk Arb Summary: Sydney Aiport, Beijing Capital Land, IGO/Western Areas

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<p>Back on the 3 June, Seaport Terminal, a wholly-owned vehicle of Tan Sri Syed Mokhtar Albukhary, <a href="https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3163886" target="_blank" rel="noopener">announced</a> an Offer for port operator and utility play <a href="https://www.smartkarma.com/entities/mmc-corp-bhd" target="_blank" data-smartkarma-citation="entities:9776:1" rel="noopener">MMC Corp Bhd (MMC MK)</a> at RM2.00/share, a 70.94% premium to last close. Seaport Terminal owned 51.76% of MMC.  The Offer was being done via a selective capital reduction and repayment (SCR) exercise.  The circular was <a href="https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3190946" target="_blank" rel="noopener">dispatched</a> on the 8 September with the EGM scheduled for the 30 September. Payment under the offer is expected towards the end of December.</p>
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<p>This looked done, but has consistently traded wide to terms, largely on concerns as to how Permodalan Nasional (PNB) will vote.</p>
<p>In <em><a href="https://skr.ma/N86j6" target="_blank" rel="noopener">MMC Corp (MMC MK): This Is A Buy</a></em> I thought it was highly unlikely the Offer would have been pitched without first sounding out PNB. I recommended getting involved at the then gross spread of 13.6%.</p>
<p>Yesterday, shareholders overwhelmingly <a href="https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3197014" target="_blank" rel="noopener">approved</a> the SCR - 85% of the disinterested shareholders voted and 99.7519% in value to the votes attached to those shares approved the special resolution. Therefore, PNB gave its blessing.</p>
<p>Now it's a question of when the High Court will sanction the deal.</p>
</div>
<div>
<p>More below the fold.</p>
</div>


Back on the 3 June, Seaport Terminal, a wholly-owned vehicle of Tan Sri Syed Mokhtar Albukhary, announced an Offer for port operator and utility play MMC Corp Bhd (MMC MK) at RM2.00/share, a 70.94% premium to last close. Seaport Terminal owned 51.76% of MMC.  The Offer was being done via a selective capital reduction and repayment (SCR) exercise.  The circular was dispatched on the 8 September with the EGM scheduled for the 30 September. Payment under the offer is expected towards the end of December.


This looked done, but has consistently traded wide to terms, largely on concerns as to how Permodalan Nasional (PNB) will vote.
In MMC Corp (MMC MK): This Is A Buy I thought it was highly unlikely the Offer would have been pitched without first sounding out PNB. I recommended getting involved at the then gross spread of 13.6%.
Yesterday, shareholders overwhelmingly approved the SCR - 85% of the disinterested shareholders voted and 99.7519% in value to the votes attached to those shares approved the special resolution. Therefore, PNB gave its blessing.
Now it's a question of when the High Court will sanction the deal.


More below the fold.


MMC Corp (MMC MK): The Vote Gets Up. Now For Court Sanctioning

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<p>On the 3 June, Seaport Terminal (Johore) Sdn Bhd, a wholly-owned entity of Tan Sri Syed Mokhtar Albukhary, <a href="https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3163886" target="_blank" rel="noopener">announced</a> an Offer for port operator and utility play <a href="https://www.smartkarma.com/entities/mmc-corp-bhd" target="_blank" data-smartkarma-citation="entities:9776:1" rel="noopener">MMC Corp Bhd (MMC MK)</a> at RM2.00/share, a 70.94% premium to last close. Seaport Terminal owns 51.76% of MMC.  The Offer is being done via a selective capital reduction and repayment (SCR) exercise. </p>
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<div>On the 4 August RHB <a href="https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3181001" target="_blank" rel="noopener">announced</a>, on behalf MMC's board, the SCR will be tabled to shareholders at a forthcoming EGM.</div>
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<p>The circular was <a href="https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3190946" target="_blank" rel="noopener">dispatched</a> on the 8 September with the EGM scheduled for the 30 September. Payment under the offer is expected towards the end of December.</p>
<p>The independent adviser, Alliance Investment Bank, deemed the Offer not fair, but reasonable.</p>
<p>This still looks done. But this is trading wide, with a largish downward move on decent volume earlier this week. The key risk is how PNB will vote.</p>
</div>
<div>
<p>More below the fold.</p>
</div>


On the 3 June, Seaport Terminal (Johore) Sdn Bhd, a wholly-owned entity of Tan Sri Syed Mokhtar Albukhary, announced an Offer for port operator and utility play MMC Corp Bhd (MMC MK) at RM2.00/share, a 70.94% premium to last close. Seaport Terminal owns 51.76% of MMC.  The Offer is being done via a selective capital reduction and repayment (SCR) exercise. 

On the 4 August RHB announced, on behalf MMC's board, the SCR will be tabled to shareholders at a forthcoming EGM.


The circular was dispatched on the 8 September with the EGM scheduled for the 30 September. Payment under the offer is expected towards the end of December.
The independent adviser, Alliance Investment Bank, deemed the Offer not fair, but reasonable.
This still looks done. But this is trading wide, with a largish downward move on decent volume earlier this week. The key risk is how PNB will vote.


More below the fold.


Malaysia

MMC Corporation Berhad is an investment holding company. The Company, through its subsidiaries and associated company, operates a container port, provides power generation, distributes natural gas, and provides engineering and construction services.

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MMC Corp Bhd (MMC MK)

MMC Corp (MMC MK): Let's Talk About Timing

As this is a Scheme, and this is Malaysia, I would target ~15% annualised or ~6.3% gross spread, therefore bid up to RM1.88/share. It does pay to...

David Blennerhassett

Asia-Pac Weekly Risk Arb Summary: Sydney Aiport, Beijing Capital Land, IGO/Western Areas

This insight provides a quick summary of gross/annualised spreads as at the last trading day, and how those spreads have changed over the last...

David Blennerhassett

MMC Corp (MMC MK): The Vote Gets Up. Now For Court Sanctioning

The SCR is done. Now we wait for High Court approval. Trading at a gross/annualised spread of 2.6%/10.7%, which is a similar spread for precedent...

David Blennerhassett

MMC Corp (MMC MK): This Is A Buy

Trading at a gross/annualised spread of 13.6%/60.2%. The risk - PNB. This Offer cannot get up without their support, and therefore they had to...

David Blennerhassett

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52-week Range

Market Cap (USDm)

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MMC Corp (MMC MK): Let's Talk About Timing

As this is a Scheme, and this is Malaysia, I would target ~15% annualised or ~6.3% gross spread, therefore bid up to RM1.88/share. It does pay to...

David Blennerhassett

Business On The Fly: Malaysia Airports (MAHB MK)'s RM11.00/Share Offer

Trading at a 8% gross spread to terms. With the Offeror consortium having the flexibility to reduce the acceptance condition; or bump terms, I'd be...

David Blennerhassett

Asia-Pac Weekly Risk Arb Summary: Sydney Aiport, Beijing Capital Land, IGO/Western Areas

This insight provides a quick summary of gross/annualised spreads as at the last trading day, and how those spreads have changed over the last...

David Blennerhassett

MMC Corp (MMC MK): The Vote Gets Up. Now For Court Sanctioning

The SCR is done. Now we wait for High Court approval. Trading at a gross/annualised spread of 2.6%/10.7%, which is a similar spread for precedent...

David Blennerhassett

MMC Corp (MMC MK): This Is A Buy

Trading at a gross/annualised spread of 13.6%/60.2%. The risk - PNB. This Offer cannot get up without their support, and therefore they had to...

David Blennerhassett