Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>The Scheme Document for <a href="https://www.smartkarma.com/entities/chinese-estates-holdings-limited" target="_blank" data-smartkarma-citation="entities:20954:1" rel="noopener">Chinese Estates Holdings (127 HK)</a> has been <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/1123/2021112301050.pdf" target="_blank" rel="noopener">dispatched</a>. The Scheme Meeting will take place on the 17 December. </li>
<li>Founder, Joseph Lau, and his wife Chan Hoi Wan, who control 74.99% of shares out, are offering HK$4.00/share for Chinese Estates, a leading property developer in Hong Kong.</li>
<li>The Independent Financial Adviser (Gram Capital) considers the Scheme to be fair and reasonable. Assuming the Scheme gets up, payment is on or before the 19 January 2022.</li>
</ul>


The Scheme Document for Chinese Estates Holdings (127 HK) has been dispatched. The Scheme Meeting will take place on the 17 December. 
Founder, Joseph Lau, and his wife Chan Hoi Wan, who control 74.99% of shares out, are offering HK$4.00/share for Chinese Estates, a leading property developer in Hong Kong.
The Independent Financial Adviser (Gram Capital) considers the Scheme to be fair and reasonable. Assuming the Scheme gets up, payment is on or before the 19 January 2022.


Chinese Estates (127 HK): Scheme Doc Out. Meeting on 17 December

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<p>After <a href="https://www.smartkarma.com/entities/polytec-asset-holdings-ltd" target="_blank" data-smartkarma-citation="entities:13322:1" rel="noopener">Polytec Asset Holdings (208 HK)</a>'s shares were <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0118/2021011800179.pdf" target="_blank" rel="noopener">suspended</a> ahead of trading on the 18 January "<em>pursuant to The Codes on Takeovers and Mergers which constitute inside information of the Company</em>", Polytec has now <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0121/2021012101027.pdf" target="_blank" rel="noopener">announced</a> a proposed privatisation by way of Scheme from Intellinsight Holdings Limited, a vehicle wholly-owned by Or Wai Sheun, Polytec's chairman.</p>
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<div>
<p>The Offer price is HK$1.50/share, a 61.29% premium to last close, and a 72.55% premium to the average closing price over the previous 30 trading days, and a decade+ high. <strong>The Offer price will not be increased</strong>. No dividend has been declared, nor is one expected to be declared during the Offer period. </p>
</div>
<p>The Offeror - Intellinsight Holdings Limited  - holds 2,389.9mn shares of 53.84% of shares out. Excluding an additional 0.67% of shares out held by concert parties, leaves 2,019.1mn shares or 45.49% of shares out held by Independent shareholders.</p>
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<p>Key Scheme conditions include at least 75% of Independent Shares voting FOR &amp; not more than 10% of the votes attached to ALL the Independent Shares against. Therefore the blocking stake is 201.9mn shares, or 4.549% of shares out. No single shareholder has declared such a stake. No irrevocables have been given.</p>
</div>
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<p>The headcount test applies as Polytec is Cayman incorporated. </p>
</div>
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<p>This deal looks done.</p>
</div>
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<p>As always, more below the fold. </p>
</div>



After Polytec Asset Holdings (208 HK)'s shares were suspended ahead of trading on the 18 January "pursuant to The Codes on Takeovers and Mergers which constitute inside information of the Company", Polytec has now announced a proposed privatisation by way of Scheme from Intellinsight Holdings Limited, a vehicle wholly-owned by Or Wai Sheun, Polytec's chairman.


The Offer price is HK$1.50/share, a 61.29% premium to last close, and a 72.55% premium to the average closing price over the previous 30 trading days, and a decade+ high. The Offer price will not be increased. No dividend has been declared, nor is one expected to be declared during the Offer period. 

The Offeror - Intellinsight Holdings Limited  - holds 2,389.9mn shares of 53.84% of shares out. Excluding an additional 0.67% of shares out held by concert parties, leaves 2,019.1mn shares or 45.49% of shares out held by Independent shareholders.


Key Scheme conditions include at least 75% of Independent Shares voting FOR &amp; not more than 10% of the votes attached to ALL the Independent Shares against. Therefore the blocking stake is 201.9mn shares, or 4.549% of shares out. No single shareholder has declared such a stake. No irrevocables have been given.


The headcount test applies as Polytec is Cayman incorporated. 


This deal looks done.


As always, more below the fold. 


Polytec Asset (208 HK): Offer By Way Of A Scheme

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>On Thursday after market close, <a href="https://www.smartkarma.com/entities/polytec-asset-holdings-ltd" target="_blank" data-smartkarma-citation="entities:13322:1" rel="noopener">Polytec Asset Holdings (208 HK)</a> announced a management-led privatisation offer. The cash offer price of HK$1.50 per share is a massive 61.29% premium to the last trading price of HK$ 0.93 per share (15 January prior to the trading halt). </p><div class="content-highlight"><p>The key conditions precedent are the headcount test and the scheme approved by at least 75% disinterested shareholders (&lt;10% disinterested shareholders rejection). The offeror and concert parties represent 2,419.8 million shares or 54.51% of shares outstanding. Disinterested scheme shareholders represent 2,019.1 million shares or 45.49% of shares outstanding which implies the 10% blocking stake is 201.9 million shares or 4.55% of shares outstanding. We believe that the privatisation bid will succeed due to the attractive price and lack of shareholders holding a blocking stake.  </p></div>

On Thursday after market close, Polytec Asset Holdings (208 HK) announced a management-led privatisation offer. The cash offer price of HK$1.50 per share is a massive 61.29% premium to the last trading price of HK$ 0.93 per share (15 January prior to the trading halt). The key conditions precedent are the headcount test and the scheme approved by at least 75% disinterested shareholders (&lt;10% disinterested shareholders rejection). The offeror and concert parties represent 2,419.8 million shares or 54.51% of shares outstanding. Disinterested scheme shareholders represent 2,019.1 million shares or 45.49% of shares outstanding which implies the 10% blocking stake is 201.9 million shares or 4.55% of shares outstanding. We believe that the privatisation bid will succeed due to the attractive price and lack of shareholders holding a blocking stake.  

Polytec Asset Holdings Privatisation Offer

Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

China Overseas Land & Investment / Equity Bottom-Up

<p>Carrie Lam has announced that the government will withdraw the extradition bill, a move that is expected to cheer the stock market. In this report, we have identified a couple of beaten-down value names that could participate in the short term rally especially those in the real estate and tourism-related sector. Some of the names mentioned also pay decent yield ranging from 2-7%. </p>

Carrie Lam has announced that the government will withdraw the extradition bill, a move that is expected to cheer the stock market. In this report, we have identified a couple of beaten-down value names that could participate in the short term rally especially those in the real estate and tourism-related sector. Some of the names mentioned also pay decent yield ranging from 2-7%. 

Leading Independent Investment Research, Morningstar, Inc.

Morningstar

Leading Independent Investment Research

Morningstar, Inc.

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. We offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. 

Morningstar provides data on more than 500,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 16 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than $180 billion in assets under advisement or management as of June 30, 2015. We have operations in 27 countries.

Download the Morningstar Fact Sheet : http://corporate.morningstar.com/US/documents/MarketingFactSheets/AboutMorningstarFactsheet.pdf

Thematic (Sector/Industry)

<p>The Hong Kong government announced a new ad valorem stamp duty, or AVD, late on Nov. 4. Effective Nov. 5, except for first-time homebuyers who are Hong Kong residents, homebuyers are subjected to a new AVD of 15%. Thus, Hong Kong residents who are not first-time homebuyers are subject to an AVD of 15%, replacing a previous AVD scale ranging from 1.5% to 8.5%. Nonresidents are subject to the new AVD of 15% in addition to an existing Buyer’s Stamp Duty, or BSD, of 15%. First-time homebuyers who are Hong Kong residents are subject to an AVD ranging from 0% to 4.25% based on the existing scale, unchanged from before.</p><p>We believe <a href="https://www.smartkarma.com/entities/111" target="_blank" data-smartkarma-citation="entities:111:1">Sun Hung Kai Properties (16 HK)</a>, or SHKP, is going to be most affected, given its large exposure to residential properties as well as its status as a proxy for the sector. We believe <a href="https://www.smartkarma.com/entities/22650" target="_blank" data-smartkarma-citation="entities:22650:1">Cheung Kong Property Holding (1113 HK)</a>, or CKP, should be less affected, as it has aggressively sold down its residential inventories, while being very selective in land acquisitions in recent years. For both <a href="https://www.smartkarma.com/entities/376" target="_blank" data-smartkarma-citation="entities:376:1">Henderson Land Development (12 HK)</a> and <a href="https://www.smartkarma.com/entities/3320" target="_blank" data-smartkarma-citation="entities:3320:1">Kerry Properties Ltd (683 HK)</a>, the impact on our fair value estimates is expected to be minor.</p><p><em>Analyst: Phillip Zhong</em></p>

The Hong Kong government announced a new ad valorem stamp duty, or AVD, late on Nov. 4. Effective Nov. 5, except for first-time homebuyers who are Hong Kong residents, homebuyers are subjected to a new AVD of 15%. Thus, Hong Kong residents who are not first-time homebuyers are subject to an AVD of 15%, replacing a previous AVD scale ranging from 1.5% to 8.5%. Nonresidents are subject to the new AVD of 15% in addition to an existing Buyer’s Stamp Duty, or BSD, of 15%. First-time homebuyers who are Hong Kong residents are subject to an AVD ranging from 0% to 4.25% based on the existing scale, unchanged from before.We believe Sun Hung Kai Properties (16 HK), or SHKP, is going to be most affected, given its large exposure to residential properties as well as its status as a proxy for the sector. We believe Cheung Kong Property Holding (1113 HK), or CKP, should be less affected, as it has aggressively sold down its residential inventories, while being very selective in land acquisitions in recent years. For both Henderson Land Development (12 HK) and Kerry Properties Ltd (683 HK), the impact on our fair value estimates is expected to be minor.Analyst: Phillip Zhong

New Stamp Duty Negative on Transaction Volume in the NearTerm

Hong Kong

Polytec Asset Holdings Limited invests in and trades securities.  The Company also invests in, develops, and trades properties.  In addition, Polytec Asset manufactures ice and provides cold storage and related services.

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Polytec Asset Holdings (208 HK)

Chinese Estates (127 HK): Scheme Doc Out. Meeting on 17 December

A gross/annualised spread 8.1%/66.2% is not unattractive. But I'd expect pushback due to low liquidity and heading into year-end.

David Blennerhassett

Polytec Asset (208 HK): Offer By Way Of A Scheme

0.5x P/B for a PRC/Macau property play is a total bargain. Yet Polytec has perennially traded at a significant discount to book. Buy here - $1.43...

David Blennerhassett

Polytec Asset Holdings Privatisation Offer

On Thursday after market close, Polytec announced a management-led privatisation offer at HK$1.50 cash per share. We believe that the privatisation...

Arun George

Hong Kong Value Names: Short Term Rally

Carrie Lam has announced that the government will withdraw the extradition bill, a move that is expected to cheer the stock market. In this report,...

Henry Soediarko

New Stamp Duty Negative on Transaction Volume in the NearTerm

The Hong Kong government announced a new ad valorem stamp duty, or AVD, late on Nov. 4. Effective Nov. 5, except for first-time homebuyers who are...

Morningstar, Inc.

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