Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Flexible printed board player <a href="https://www.smartkarma.com/entities/akm-industrial-co-ltd" target="_blank" data-smartkarma-citation="entities:7206:1" rel="noopener">Akm Industrial (1639 HK)</a> has <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2022/0116/2022011600015.pdf" target="_blank" rel="noopener">announced</a> a pre-conditional Scheme from Alpha Luck and AKM Meadville at HK$1.82/share. The Offer price will NOT be increased.</li>
<li>Alpha Luck is ultimately held by SASAC and AKM Meadville by the government of Haicang District, Xiamen. The two intend to hold 40:60 respectively in the unlisted vehicle. </li>
<li>Various PRC regulatory approvals are required. This appears a transaction geared to complete. Timing is the key risk to the deal.</li>
</ul>


Flexible printed board player Akm Industrial (1639 HK) has announced a pre-conditional Scheme from Alpha Luck and AKM Meadville at HK$1.82/share. The Offer price will NOT be increased.
Alpha Luck is ultimately held by SASAC and AKM Meadville by the government of Haicang District, Xiamen. The two intend to hold 40:60 respectively in the unlisted vehicle. 
Various PRC regulatory approvals are required. This appears a transaction geared to complete. Timing is the key risk to the deal.


AKM Industrial (1639 HK): SASAC and Xiamen Government-Backed Pre-Conditional Offer

<ul>
<li>There are currently 45 - mostly firm - transactions currently being discussed and analysed on Smartkarma.</li>
<li>One new deal discussed this week - SASAC-backed Hubei Ports' tilt for <a href="https://www.smartkarma.com/entities/china-infrastructure-logis" target="_blank" data-smartkarma-citation="entities:16710:1" rel="noopener">China Infrastructure &amp; Logistics Group (1719 HK)</a>.</li>
<li>There were updates for <a href="https://www.smartkarma.com/entities/crown-resorts-ltd" target="_blank" data-smartkarma-citation="entities:808:1" rel="noopener">Crown Resorts (CWN AU)</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/australian-pharmaceutical-industries-limited" target="_blank" data-smartkarma-citation="entities:19399:1" rel="noopener">Australian Pharmaceutical Industries (API AU)</a>, <a href="https://www.smartkarma.com/entities/katakura-industries-co-ltd" target="_blank" data-smartkarma-citation="entities:2007:1" rel="noopener">Katakura Industries (3001 JP)</a>, and <a href="https://www.smartkarma.com/entities/irongate-group" target="_blank" data-smartkarma-citation="entities:30897:1" rel="noopener">Irongate Group (IAP AU)</a>.
</li>
</ul>


There are currently 45 - mostly firm - transactions currently being discussed and analysed on Smartkarma.
One new deal discussed this week - SASAC-backed Hubei Ports' tilt for China Infrastructure &amp; Logistics Group (1719 HK).
There were updates for Crown Resorts (CWN AU), Razer Inc (1337 HK), Australian Pharmaceutical Industries (API AU), Katakura Industries (3001 JP), and Irongate Group (IAP AU).



Asia-Pac Weekly Risk Arb Summary: Razer, Crown Resorts, Katakura, Ausnutria, API, Irongate

Lanzhou Zhuangyuan Pasture / Event-Driven

<ul>
<li>PRC dairy farmer <a href="https://www.smartkarma.com/entities/lanzhou-zhuangyuan-pasture-co-ltd" target="_blank" data-smartkarma-citation="entities:10174:1" rel="noopener"></a><a href="https://www.smartkarma.com/entities/lanzhou-zhuangyuan-pasture-co-ltd" target="_blank" data-smartkarma-citation="entities:10174:1" rel="noopener">Lanzhou Zhuangyuan Pasture (1533 HK)</a> is proposing to buy back its H-shares, in cash. No price was cited in the HKEx announcement.</li>
<li>Such an Offer is expected to be done via a voluntary cash Offer. This suggests a condition to the Offer involves a tendering condition. </li>
<li>This is the second proposal in the Chinese dairy space in as many months, after infant-formula  firm <a href="https://www.smartkarma.com/entities/ausnutria-dairy-corp-ltd" target="_blank" data-smartkarma-citation="entities:13799:1" rel="noopener">Ausnutria Dairy Corp (1717 HK)</a>'s Scheme</li>
</ul>


PRC dairy farmer Lanzhou Zhuangyuan Pasture (1533 HK) is proposing to buy back its H-shares, in cash. No price was cited in the HKEx announcement.
Such an Offer is expected to be done via a voluntary cash Offer. This suggests a condition to the Offer involves a tendering condition. 
This is the second proposal in the Chinese dairy space in as many months, after infant-formula  firm Ausnutria Dairy Corp (1717 HK)'s Scheme


Lanzhou Zhuangyuan Pasture (1533 HK): Possible H-Share Delisting Offer

Shanghai Jin Jiang Capital / Event-Driven

<ul>
<li>Yesterday <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> announced Pacific Asset Management (19.02% of the H Shares), was given the green light from the SFC to vote at the H-Class Meeting.</li>
<li>Shanghai Jin Jiang's delisting proposal incorporates a vote requiring ≥ 75% for, ≤10% against from independent H-shareholders. Allowing Pacific Asset Management to vote is viewed positively.</li>
<li>This PRC merger by absorption does not involve any tendering condition. This deal looks even more done.</li>
</ul>


Yesterday Shanghai Jin Jiang (2006 HK) announced Pacific Asset Management (19.02% of the H Shares), was given the green light from the SFC to vote at the H-Class Meeting.
Shanghai Jin Jiang's delisting proposal incorporates a vote requiring ≥ 75% for, ≤10% against from independent H-shareholders. Allowing Pacific Asset Management to vote is viewed positively.
This PRC merger by absorption does not involve any tendering condition. This deal looks even more done.


Shanghai Jin Jiang Capital (2006 HK)’s Offer: Another Reason To Get Involved

<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> (SJJC) has <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/1124/2021112401322.pdf" target="_blank" rel="noopener">announced</a> a pre-conditional Offer from an entity primarily controlled by Shanghai SASAC. </li>
<li>The Offer price is HK$3.10 per H-share, a 33.62% 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 SASAC. There is no tendering acceptance condition. This deal is very similar to <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 Ltd H (2868 HK)</a>'s.</li>
</ul>


Hotel operator Shanghai Jin Jiang Capital Company Limited (2006 HK) (SJJC) has announced a pre-conditional Offer from an entity primarily controlled by Shanghai SASAC. 
The Offer price is HK$3.10 per H-share, a 33.62% 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 SASAC. There is no tendering acceptance condition. This deal is very similar to Beijing Capital Land Ltd H (2868 HK)'s.


Shanghai Jin Jiang Capital (2006 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)

AKM Industrial (1639 HK): SASAC and Xiamen Government-Backed Pre-Conditional Offer

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David Blennerhassett