IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

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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.

Event-Driven

Shanghai Jin Jiang Capital / Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shanghai-jin-jiang-capital-company-limited" target="_blank" data-smartkarma-citation="entities:15781:1" rel="noopener">Shanghai Jin Jiang Capital Company Limited (2006 HK)</a>'s H Shareholders’ class meeting is scheduled for 26 April. The IFA considers the offer to be fair and reasonable. </li>
<li>The 10% blocking stake is 2.50% of outstanding shares (10.00% of H Shares). The two H Shareholders with blocking stakes will be supportive. There is no minimum acceptance condition.</li>
<li>At last close and for a 17 May payment date, the gross and annualised spread to the total offer is 1.6% and 15.7%, respectively.</li>
</ul>



Shanghai Jin Jiang Capital Company Limited (2006 HK)'s H Shareholders’ class meeting is scheduled for 26 April. The IFA considers the offer to be fair and reasonable. 
The 10% blocking stake is 2.50% of outstanding shares (10.00% of H Shares). The two H Shareholders with blocking stakes will be supportive. There is no minimum acceptance condition.
At last close and for a 17 May payment date, the gross and annualised spread to the total offer is 1.6% and 15.7%, respectively.


Jin Jiang Capital’s H Share Class Meeting on 26 April, IFA Opinion

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>Hotel operator <a href="https://www.smartkarma.com/entities/shanghai-jin-jiang-capital-company-limited" target="_blank" data-smartkarma-citation="entities:15781:1" rel="noopener">Shanghai Jin Jiang Capital Company Limited (2006 HK)</a><a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2022/0328/2022032800934.pdf" target="_blank" rel="noopener"> announced</a> yesterday that all pre-conditions to the Offer from Shanghai SASAC have been satisfied.  </li>
<li>The Composite Document is expected to be dispatched on or before the 1 April.</li>
<li>Based on precedents for the privatisation of PRC incorporated companies, absent a tendering condition, payment is expected around the third week of May, on the assumption the vote gets up.</li>
</ul>


Hotel operator Shanghai Jin Jiang Capital Company Limited (2006 HK) announced yesterday that all pre-conditions to the Offer from Shanghai SASAC have been satisfied.  
The Composite Document is expected to be dispatched on or before the 1 April.
Based on precedents for the privatisation of PRC incorporated companies, absent a tendering condition, payment is expected around the third week of May, on the assumption the vote gets up.


Jin Jiang Capital (2006 HK): Tardy, But Pre-Con Approvals Were Never In Doubt

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shanghai-jin-jiang-capital-company-limited" target="_blank" data-smartkarma-citation="entities:15781:1" rel="noopener">Shanghai Jin Jiang Capital Company Limited (2006 HK)</a>’s privatisation offer from Jin Jiang International Holding is HK$3.10 per H share. The pre-condition was fulfilled on 28 March.  </li>
<li>The key conditions for the delisting will be approval by at least 75% of independent H-shareholders (&lt;10% of all independent H-shareholders rejection). There is no minimum acceptance condition.  </li>
<li>At last close and for a May end effective date (composite document despatched on 1 April), the gross and annualised spread to the offer is 4.7% and 32.1%, respectively.</li>
</ul>



Shanghai Jin Jiang Capital Company Limited (2006 HK)’s privatisation offer from Jin Jiang International Holding is HK$3.10 per H share. The pre-condition was fulfilled on 28 March.  
The key conditions for the delisting will be approval by at least 75% of independent H-shareholders (&lt;10% of all independent H-shareholders rejection). There is no minimum acceptance condition.  
At last close and for a May end effective date (composite document despatched on 1 April), the gross and annualised spread to the offer is 4.7% and 32.1%, respectively.


Jin Jiang Capital’s Offer Risk/Reward – Pre-Condition Satisfied

<ul>
<li>We summarise the latest spreads and newsflow of merger arb situations covered by us across Hong Kong, Australia, New Zealand, Singapore and the US (Chinese ADRs only). </li>
<li>This week, the highest gross spreads are <a href="https://www.smartkarma.com/entities/yashili-international-holdings-ltd" target="_blank" data-smartkarma-citation="entities:3397:1" rel="noopener">Yashili International Holdings (1230 HK)</a>, <a href="https://www.smartkarma.com/entities/razer-inc" target="_blank" data-smartkarma-citation="entities:24380:1" rel="noopener">Razer Inc (1337 HK)</a>, <a href="https://www.smartkarma.com/entities/51-job-inc-adr" target="_blank" data-smartkarma-citation="entities:532:1" rel="noopener">51 Job Inc Adr (JOBS US)</a>, <a href="https://www.smartkarma.com/entities/uniti-group-ltd" target="_blank" data-smartkarma-citation="entities:29042:1" rel="noopener">Uniti Group Ltd (UWL AU)</a>
</li>
<li>The lowest gross spreads are <a href="https://www.smartkarma.com/entities/cimic-group-ltd" target="_blank" data-smartkarma-citation="entities:20030:1" rel="noopener">CIMIC Group Ltd (CIM AU)</a>, <a href="https://www.smartkarma.com/entities/virtus-health-ltd" target="_blank" data-smartkarma-citation="entities:14776:1" rel="noopener">Virtus Health (VRT AU)</a>, <a href="https://www.smartkarma.com/entities/china-logistics-property-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:22799:1" rel="noopener">China Logistics Property Holdings (1589 HK)</a>, <a href="https://www.smartkarma.com/entities/z-energy-ltd" target="_blank" data-smartkarma-citation="entities:9838:1" rel="noopener">Z Energy Ltd (ZEL NZ)</a>, <a href="https://www.smartkarma.com/entities/singapore-press-holdings-limited" target="_blank" data-smartkarma-citation="entities:9952:1" rel="noopener">Singapore Press Holdings (SPH SP)</a> </li>
</ul>


We summarise the latest spreads and newsflow of merger arb situations covered by us across Hong Kong, Australia, New Zealand, Singapore and the US (Chinese ADRs only). 
This week, the highest gross spreads are Yashili International Holdings (1230 HK), Razer Inc (1337 HK), 51 Job Inc Adr (JOBS US), Uniti Group Ltd (UWL AU)

The lowest gross spreads are CIMIC Group Ltd (CIM AU), Virtus Health (VRT AU), China Logistics Property Holdings (1589 HK), Z Energy Ltd (ZEL NZ), Singapore Press Holdings (SPH SP) 


Merger Arb Mondays - Yashili, Razer, 51Job, Uniti, Link, Sezzle, Guodian

Guodian Technology & Environment Group / Event-Driven

Guodian Technology & Environment Group (9GT GR)

<ul>
<li>Environmental protection and wind power products manufacturer <a href="https://www.smartkarma.com/entities/guodian-technology-environment-group-corp" target="_blank" data-smartkarma-citation="entities:3941:1" rel="noopener">Guodian Technology &amp; Environment Group (1296 HK)</a> (GTE) has announced a pre-conditional Offer from China Energy, a SASAC-controlled entity, and Guodian Power. </li>
<li>The Offer price is HK$1.08 per H-share, a 47.95% premium to last close. The Offer price will NOT be increased. No dividends are expected to be declared. </li>
<li>The pre-conditions include approvals from NDRC, MoC, SAFE, and CSRC. There is no tendering acceptance condition. This deal mirrors <a href="https://www.smartkarma.com/entities/beijing-capital-land-ltd-h" target="_blank" data-smartkarma-citation="entities:4543:1" rel="noopener">Beijing Capital Land (2868 HK)</a> and <a href="https://www.smartkarma.com/entities/shanghai-jin-jiang-capital-company-limited" target="_blank" data-smartkarma-citation="entities:15781:1" rel="noopener">Shanghai Jin Jiang (2006 HK)</a>'s.</li>
</ul>


Environmental protection and wind power products manufacturer Guodian Technology &amp; Environment Group (1296 HK) (GTE) has announced a pre-conditional Offer from China Energy, a SASAC-controlled entity, and Guodian Power. 
The Offer price is HK$1.08 per H-share, a 47.95% premium to last close. The Offer price will NOT be increased. No dividends are expected to be declared. 
The pre-conditions include approvals from NDRC, MoC, SAFE, and CSRC. There is no tendering acceptance condition. This deal mirrors Beijing Capital Land (2868 HK) and Shanghai Jin Jiang (2006 HK)'s.


Guodian Tech (1296 HK)’s Pre-Conditional Offer

China

Shanghai Jin Jiang Capital is primarily engaged in hotel operations, passenger transportation vehicles and logistics, and travel agency services. The company manages a vast portfolio of hotels globally, including full-service and select-service properties, and also operates restaurants. It was founded in 1995 and is headquartered in Shanghai, the People's Republic of China.

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Shanghai Jin Jiang Capital (2006 HK)

Jin Jiang Capital (2006 HK): Tardy, But Pre-Con Approvals Were Never In Doubt

This is done - play the spread here. Assuming payment on the 23 May, I see the gross/annualised spread at 4.7%/35.9%. I'd be a buyer here at $2.96.

David Blennerhassett

Jin Jiang Capital’s Offer Risk/Reward – Pre-Condition Satisfied

The pre-condition was fulfilled on 28 March and the composite document will be despatched on 1 April. At last close and for a May end effective...

Arun George

Merger Arb Mondays - Yashili, Razer, 51Job, Uniti, Link, Sezzle, Guodian

This week, the highest gross spreads are Yashili (41.2%), Razer (19.2%), 51 Job (16.0%), Uniti Group (9.8%), Link (8.6%), Sezzle (7.0%), Guodian...

Arun George

Guodian Tech (1296 HK)’s Pre-Conditional Offer

This looks done - play the spread here. Assuming payment mid-June, I would pay up to HK$1.00/share or a gross/annualised spread at 7%/19%.

David Blennerhassett

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Jin Jiang Capital’s H Share Class Meeting on 26 April, IFA Opinion

Jin Jiang's H Share’s class meeting is scheduled for 26 April. The IFA considers the offer to be fair and reasonable. For a 17 May payment, the...

Arun George

Jin Jiang Capital (2006 HK): Tardy, But Pre-Con Approvals Were Never In Doubt

This is done - play the spread here. Assuming payment on the 23 May, I see the gross/annualised spread at 4.7%/35.9%. I'd be a buyer here at $2.96.

David Blennerhassett

Jin Jiang Capital’s Offer Risk/Reward – Pre-Condition Satisfied

The pre-condition was fulfilled on 28 March and the composite document will be despatched on 1 April. At last close and for a May end effective...

Arun George

Merger Arb Mondays - Yashili, Razer, 51Job, Uniti, Link, Sezzle, Guodian

This week, the highest gross spreads are Yashili (41.2%), Razer (19.2%), 51 Job (16.0%), Uniti Group (9.8%), Link (8.6%), Sezzle (7.0%), Guodian...

Arun George

Guodian Tech (1296 HK)’s Pre-Conditional Offer

This looks done - play the spread here. Assuming payment mid-June, I would pay up to HK$1.00/share or a gross/annualised spread at 7%/19%.

David Blennerhassett