Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Back on the 11 April, Chinese internet data center services provider <strong><a href="https://www.smartkarma.com/entities/21-vianet-group-inc-adr" target="_blank" data-smartkarma-citation="entities:8489:1" rel="noopener">VNET (VNET US)</a></strong> <a href="https://ir.vnet.com/news-releases/news-release-details/vnet-receives-unsolicited-preliminary-non-binding-proposal" target="_blank" rel="noopener">announced</a> a non-binding proposal from Hina Group and Shanghai's Industrial Bank at an utterly underwhelming US$8.00/ADS.</li>
<li>Then crickets. A reported tilt from MBK Partners failed to materialise.</li>
<li>VNET has now announced a preliminary non-binding proposal from founder Josh Sheng Chen, at a similarly underwhelming price of US$8.20/ADS. </li>
</ul>


Back on the 11 April, Chinese internet data center services provider VNET (VNET US) announced a non-binding proposal from Hina Group and Shanghai's Industrial Bank at an utterly underwhelming US$8.00/ADS.
Then crickets. A reported tilt from MBK Partners failed to materialise.
VNET has now announced a preliminary non-binding proposal from founder Josh Sheng Chen, at a similarly underwhelming price of US$8.20/ADS. 


VNET: Management's Low-Balled Non-Binding Proposal

<p>Back on the 10 February 2021, private hospitals and medical centers operator <a href="https://www.smartkarma.com/entities/new-frontier-health-corp" target="_blank" data-smartkarma-citation="entities:28429:1" rel="noopener">New Frontier Corporation (NFH US)</a> made an <a href="https://d18rn0p25nwr6d.cloudfront.net/CIK-0001737422/16f0d15b-2a3a-4ad0-9ad3-85d84f2c7485.pdf" target="_blank" rel="noopener">announcement</a> it had received a preliminary non-proposal binding letter from a buyer-group, including President Carl Wu, Carnival Investments, Vivo Capital Fund IX, Max Rising International Ltd (a company affiliated with Carl Wu) - among others.</p>
<p>The group offered to acquire shares of New Frontier for $12 in cash, a 27.9% premium to last close.</p>
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<p>New Frontier has now entered into a <a href="https://d18rn0p25nwr6d.cloudfront.net/CIK-0001737422/4394dbb2-ca20-48cd-9bf2-2c1f323694a6.pdf" target="_blank" rel="noopener">definitive merger agreement</a>, also at US$12/share.</p>
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<p>The merger is conditional on an affirmative vote from shareholders representing at least two-thirds of the shares out, and that the aggregate quantity of dissenting shares shall be less than 10% of shares out.</p>
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<p>The announcement is silent on the buyer consortium's % holding, but I estimate it to be at least 37%.</p>
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<p>This looks pretty clean. Possible completion late 4Q21.</p>
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<p>More below the fold.</p>
</div>

Back on the 10 February 2021, private hospitals and medical centers operator New Frontier Corporation (NFH US) made an announcement it had received a preliminary non-proposal binding letter from a buyer-group, including President Carl Wu, Carnival Investments, Vivo Capital Fund IX, Max Rising International Ltd (a company affiliated with Carl Wu) - among others.
The group offered to acquire shares of New Frontier for $12 in cash, a 27.9% premium to last close.

New Frontier has now entered into a definitive merger agreement, also at US$12/share.


The merger is conditional on an affirmative vote from shareholders representing at least two-thirds of the shares out, and that the aggregate quantity of dissenting shares shall be less than 10% of shares out.


The announcement is silent on the buyer consortium's % holding, but I estimate it to be at least 37%.


This looks pretty clean. Possible completion late 4Q21.


More below the fold.


New Frontier (NYSE: NFH): Healthcare Homecoming

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

New Frontier Health  / Equity Capital Markets

<p>New Frontier Corp (NFC) is seeking shareholder approval for the acquisition of UFH (United Family Healthcare) and share placements to fund the transaction. UFH was previously part of Chindex which was delisted in 2014.</p>
<p>Accredited by JCI, UFH is a leading premium healthcare service provider in China with a strong foothold in tier 1 cities. In this note, we look at the company’s core assets including Beijing United Family Hospitals and Shanghai Puxi United Family Hospital. </p>
<p>UFH’s target customers are affluent Chinese and expatriates. It has a strong focus on obstetrics and gynaecology, pediatric and family medicine. Our channel check suggests that UFH offers reasonable quality healthcare services on par with an international hospital but it’s not the top choice for critical illness as the top specialists are still more accessible at the leading public hospitals. </p>
<p>We compare the valuation of UFH acquisition with the valuation of the delisting from the US. We value the company’s mature assets and expansion assets separately. On a combined basis, we value the company at an enterprise value of USD 1.8 billion.</p>

New Frontier Corp (NFC) is seeking shareholder approval for the acquisition of UFH (United Family Healthcare) and share placements to fund the transaction. UFH was previously part of Chindex which was delisted in 2014.
Accredited by JCI, UFH is a leading premium healthcare service provider in China with a strong foothold in tier 1 cities. In this note, we look at the company’s core assets including Beijing United Family Hospitals and Shanghai Puxi United Family Hospital. 
UFH’s target customers are affluent Chinese and expatriates. It has a strong focus on obstetrics and gynaecology, pediatric and family medicine. Our channel check suggests that UFH offers reasonable quality healthcare services on par with an international hospital but it’s not the top choice for critical illness as the top specialists are still more accessible at the leading public hospitals. 
We compare the valuation of UFH acquisition with the valuation of the delisting from the US. We value the company’s mature assets and expansion assets separately. On a combined basis, we value the company at an enterprise value of USD 1.8 billion.

New Frontier Corp (和睦家) Trade - A Relisting with a Bigger Asset

Hong Kong

New Frontier Health Corporation provides healthcare services. The Company offers healthcare platform consists of a network of seven private hospitals and affiliated ambulatory clinics. New Frontier Health serves patients in China and Hong Kong.

New Frontier Health (NFH US)

VNET: Management's Low-Balled Non-Binding Proposal

Trading at a ~45% gross spread to terms is illustrative of the proposal's non-binding nature. It's an opportunistic approach. Only for the brave at...

David Blennerhassett

New Frontier (NYSE: NFH): Healthcare Homecoming

I see the gross/annualised spread at 7.4%/19.8%, assuming late December completion. This looks like a pretty clean deal for around five months of...

David Blennerhassett

New Frontier Corp (和睦家) Trade - A Relisting with a Bigger Asset

New Frontier Corp (NFC) is seeking shareholder approval for the acquisition of UFH (United Family Healthcare) and share placements to fund the...

Ke Yan, CFA, FRM