Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

O-Net Technologies (Group)  / Event-Driven

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<p>On the 8 July, <a href="https://www.smartkarma.com/entities/o-net-technologies-group-limited" target="_blank" data-smartkarma-citation="entities:16122:1" rel="noopener">O-Net Technologies (Group) (877 HK)</a>, a leader in the provision of high-technology products and optical networking components,  <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0708/2020070800600.pdf" target="_blank" rel="noopener">announced</a> an Offer by way of a Scheme, with a cancellation price of HK$6.50/share, a 23.57% premium to last close and a 43.18% premium to the six-month average close. The Offer price was final.</p>
<p>Na Qinglin (chairman of O-Net) (34.5% of shares out), <a href="https://www.smartkarma.com/entities/shenzhen-kaifa-technology-a" target="_blank" data-smartkarma-citation="entities:20393:1" rel="noopener">Shenzhen Kaifa Technology A (000021 CH)</a> (20.52%) and HC Capital (0.33%) are acting in concert, leaving 44.65% (372.408mn shares) in the hands of Disinterested Shareholders.</p>
<p>Therefore the blocking stake at the Scheme Meeting is 37.24mn shares or 4.465% of shares out. The 10% blocking stake is attached to ALL of the Scheme Shares held by the Disinterested Shareholders. The headcount test applies as O-Net is Cayman incorporated. </p>
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<p>The Scheme Document is now <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0901/2020090101388.pdf" target="_blank" rel="noopener">out</a>. The Scheme Meeting will be held on 25 September with expected payment (assuming shareholders approve the Scheme) on the 27 October, just under a week past my initial timetable expectation. The IFA (Somerley) considers the offer to be "fair and reasonable."</p>
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<p>This is a pretty clean deal. I'd get involved at a gross/annualised spread at 2.7%/19.2%.</p>
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<p>As always, more below the fold.</p>
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<p><em>Past insights on O-Net</em></p>
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<h3>Date</h3>
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<td style="width: 484.782px;">
<h3>Insight</h3>
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<td style="width: 218.75px;">7-Jul-20</td>
<td style="width: 484.782px;"><a href="https://skr.ma/nqHJk" target="_blank" rel="noopener">O-Net Tech (877 HK): Tripping The Light Fantastic</a></td>
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<td style="width: 218.75px;">9-Jul-20</td>
<td style="width: 484.782px;"><a href="https://skr.ma/8Bd58" target="_blank" rel="noopener">O-Net (877 HK): Swish Switches Offer</a></td>
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</table>
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On the 8 July, O-Net Technologies (Group) (877 HK), a leader in the provision of high-technology products and optical networking components,  announced an Offer by way of a Scheme, with a cancellation price of HK$6.50/share, a 23.57% premium to last close and a 43.18% premium to the six-month average close. The Offer price was final.
Na Qinglin (chairman of O-Net) (34.5% of shares out), Shenzhen Kaifa Technology A (000021 CH) (20.52%) and HC Capital (0.33%) are acting in concert, leaving 44.65% (372.408mn shares) in the hands of Disinterested Shareholders.
Therefore the blocking stake at the Scheme Meeting is 37.24mn shares or 4.465% of shares out. The 10% blocking stake is attached to ALL of the Scheme Shares held by the Disinterested Shareholders. The headcount test applies as O-Net is Cayman incorporated. 


The Scheme Document is now out. The Scheme Meeting will be held on 25 September with expected payment (assuming shareholders approve the Scheme) on the 27 October, just under a week past my initial timetable expectation. The IFA (Somerley) considers the offer to be "fair and reasonable."


This is a pretty clean deal. I'd get involved at a gross/annualised spread at 2.7%/19.2%.


As always, more below the fold.


Past insights on O-Net







Date


Insight



7-Jul-20
O-Net Tech (877 HK): Tripping The Light Fantastic


9-Jul-20
O-Net (877 HK): Swish Switches Offer







O-Net (877 HK): Offer Doc Out. Priced To Complete

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IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<p><a href="https://www.smartkarma.com/entities/o-net-technologies-group-limited" target="_blank" data-smartkarma-citation="entities:16122:1" rel="noopener">O-Net Technologies (Group) (877 HK)</a> designs, manufactures and sells optical networking products for the high-speed telco and data communications systems as well as machine vision systems and sensors for smart manufacturing market. After market close on Wednesday, it announced a privatisation offer by way of a scheme of arrangement from Optical Beta Limited. The offeror will offer HK$6.50 cash per scheme share. The bid represents a premium of 23.57% over the closing price of HK$5.26 per share on the last trading day (3 July 2020).</p><div class="content-highlight"><p>The key condition precedents are the headcount test along with the scheme approved by at least 75% disinterested shareholders and &lt;10% rejection by all disinterested shareholders. Overall, we believe that the privatisation bid will be successful. </p></div>

O-Net Technologies (Group) (877 HK) designs, manufactures and sells optical networking products for the high-speed telco and data communications systems as well as machine vision systems and sensors for smart manufacturing market. After market close on Wednesday, it announced a privatisation offer by way of a scheme of arrangement from Optical Beta Limited. The offeror will offer HK$6.50 cash per scheme share. The bid represents a premium of 23.57% over the closing price of HK$5.26 per share on the last trading day (3 July 2020).The key condition precedents are the headcount test along with the scheme approved by at least 75% disinterested shareholders and &lt;10% rejection by all disinterested shareholders. Overall, we believe that the privatisation bid will be successful. 

<div>
<p>On the 6 July, <a href="https://www.smartkarma.com/entities/o-net-technologies-group-limited" target="_blank" data-smartkarma-citation="entities:16122:1" rel="noopener">O-Net Technologies (Group) (877 HK)</a>, a leader in the provision of high-technology products and optical networking components, was <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0706/2020070600117.pdf" target="_blank" rel="noopener">suspended</a> pursuant to the Code on Takeovers and Mergers.</p>
<p>An Offer, by way of a Scheme, has now been <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0708/2020070800600.pdf" target="_blank" rel="noopener">announced</a>. The cancellation price is HK$6.50/share, a 23.57% premium to last close and a 43.18% premium to the six-month average close. The price will not be increased.</p>
<p>Disinterested Shareholders comprise 375.196mn shares, or 44.99% of shares out. Therefore the blocking stake at the Scheme Meeting is 37.52mn shares or 4.499% of shares out - or HK$197mn using the undisturbed close. The 10% blocking stake is attached to ALL of the Scheme Shares held by the Disinterested Shareholders. </p>
<p>O-Net is Cayman incorporated therefore the headcount test applies. </p>
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<p>Assuming the deal gets up, this may be wrapped up by late October.</p>
</div>
<div>
<p>As always, more below the fold.</p>
</div>


On the 6 July, O-Net Technologies (Group) (877 HK), a leader in the provision of high-technology products and optical networking components, was suspended pursuant to the Code on Takeovers and Mergers.
An Offer, by way of a Scheme, has now been announced. The cancellation price is HK$6.50/share, a 23.57% premium to last close and a 43.18% premium to the six-month average close. The price will not be increased.
Disinterested Shareholders comprise 375.196mn shares, or 44.99% of shares out. Therefore the blocking stake at the Scheme Meeting is 37.52mn shares or 4.499% of shares out - or HK$197mn using the undisturbed close. The 10% blocking stake is attached to ALL of the Scheme Shares held by the Disinterested Shareholders. 
O-Net is Cayman incorporated therefore the headcount test applies. 


Assuming the deal gets up, this may be wrapped up by late October.


As always, more below the fold.


China

O-Net Technologies Group Ltd. supplies passive optical networking subcomponents,  components, modules and subsystems used in high-speed telecommunications and data communications networks.

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O-Net Technologies (Group) (877 HK)

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O-Net (877 HK): Swish Switches Offer

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David Blennerhassett

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