Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Back in June 2024, the Aussie Treasurer made orders requiring Singapore-based Yuxiao and four (deemed) associated investors to sell their shares in <a href="https://www.smartkarma.com/entities/northern-minerals-ltd" target="_blank" data-smartkarma-citation="entities:20445:1" rel="noopener">Northern Minerals (NTU AU)</a> within 60 days.</li>
<li>I discussed this situation in <a href="https://skr.ma/7iWo4" target="_blank" rel="noopener">Northern Minerals (NMI AU): Chinese Investors Forced To Exit</a>. One shareholder, Indian Ocean International Shipping, stonewalled, and was subsequently fined A$14mn late last year. </li>
<li>The latest news concerns Beijing-based Vastness Investment Group, Northern Minerals largest shareholder (7.7%), withdrawing its requisition to oust Adam Handley (chairman). These developments appear geared to stress-testing Aussie foreign investment.</li>
</ul>


Back in June 2024, the Aussie Treasurer made orders requiring Singapore-based Yuxiao and four (deemed) associated investors to sell their shares in Northern Minerals (NTU AU) within 60 days.
I discussed this situation in Northern Minerals (NMI AU): Chinese Investors Forced To Exit. One shareholder, Indian Ocean International Shipping, stonewalled, and was subsequently fined A$14mn late last year. 
The latest news concerns Beijing-based Vastness Investment Group, Northern Minerals largest shareholder (7.7%), withdrawing its requisition to oust Adam Handley (chairman). These developments appear geared to stress-testing Aussie foreign investment.


Northern Minerals (NTU AU): More Board Games

<ul>
<li>
<a href="https://www.smartkarma.com/entities/zeekr-intelligent-technology-holding" target="_blank" data-smartkarma-citation="entities:36785:1" rel="noopener">ZEEKR (ZK US)</a> traded wide to the scrip terms ahead of <a href="https://www.smartkarma.com/entities/geely-automobile-holdings-ltd" target="_blank" data-smartkarma-citation="entities:127:1" rel="noopener">Geely Auto (175 HK)</a>'s EGM Vote. That was a buying opportunity. </li>
<li>A positive surprise as SAMR expediently signs off on the <a href="https://www.smartkarma.com/entities/hangzhou-kangji-medical-instrument-co-ltd" target="_blank" data-smartkarma-citation="entities:28938:1" rel="noopener">Hangzhou Kangji Medical Instrument Co., Ltd. (9997 HK)</a> transaction. This could be wrapped up before Xmas.</li>
<li>
<a href="https://www.smartkarma.com/entities/china-mobile-ltd" target="_blank" data-smartkarma-citation="entities:27:1" rel="noopener">China Mobile (941 HK)</a> comfortably clears the 50% conditional threshold into <a href="https://www.smartkarma.com/entities/hkbn-ltd" target="_blank" data-smartkarma-citation="entities:289:1" rel="noopener">HKBN Ltd (1310 HK)</a>; however compulsory acquisition appears out of reach</li>
</ul>



ZEEKR (ZK US) traded wide to the scrip terms ahead of Geely Auto (175 HK)'s EGM Vote. That was a buying opportunity. 
A positive surprise as SAMR expediently signs off on the Hangzhou Kangji Medical Instrument Co., Ltd. (9997 HK) transaction. This could be wrapped up before Xmas.

China Mobile (941 HK) comfortably clears the 50% conditional threshold into HKBN Ltd (1310 HK); however compulsory acquisition appears out of reach


Last Week In Event SPACE: ZEEKR/Geely, Kangji Medical, HKBN, Lynas, Huaxin Cement, Nidec

<ul>
<li>I tally 45 - mostly firm, mostly Asia-Pac - arb transactions currently being discussed and analysed on Smartkarma.</li>
<li>Two new deals were discussed on Smartkarma this week: <a href="https://www.smartkarma.com/entities/peak-rare-earths-limited-nguall" target="_blank" data-smartkarma-citation="entities:19238:1" rel="noopener">Peak Rare Earths (PEK AU)</a> and <a href="https://www.smartkarma.com/entities/yutaka-giken-co-ltd" target="_blank" data-smartkarma-citation="entities:4033:1" rel="noopener">Yutaka Giken (7229 JP)</a>. </li>
<li>Key updates/news took place on <a href="https://www.smartkarma.com/entities/johns-lyng-group-ltd" target="_blank" data-smartkarma-citation="entities:26649:1" rel="noopener">Johns Lyng (JLG AU)</a>, <a href="https://www.smartkarma.com/entities/ainsworth-game-technology-limited" target="_blank" data-smartkarma-citation="entities:957:1" rel="noopener">Ainsworth Game Technology (AGI AU)</a>, <a href="https://www.smartkarma.com/entities/shibaura-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:12704:1" rel="noopener">Shibaura Electronics (6957 JP)</a>, <a href="https://www.smartkarma.com/entities/ashimori-industry-co-ltd" target="_blank" data-smartkarma-citation="entities:13918:1" rel="noopener">Ashimori Industry (3526 JP)</a>, and <a href="https://www.smartkarma.com/entities/pacific-industrial-co-ltd" target="_blank" data-smartkarma-citation="entities:6261:1" rel="noopener">Pacific Industrial (7250 JP)</a>.</li>
</ul>


I tally 45 - mostly firm, mostly Asia-Pac - arb transactions currently being discussed and analysed on Smartkarma.
Two new deals were discussed on Smartkarma this week: Peak Rare Earths (PEK AU) and Yutaka Giken (7229 JP). 
Key updates/news took place on Johns Lyng (JLG AU), Ainsworth Game Technology (AGI AU), Shibaura Electronics (6957 JP), Ashimori Industry (3526 JP), and Pacific Industrial (7250 JP).


(Mostly) Asia-Pac M&A: Peak Rare Earths, Yutaka Giken, Shibaura, Johns Lyng, Ainsworth, Ashimori

<ul>
<li>On the <a href="https://announcements.asx.com.au/asxpdf/20250515/pdf/06jrrv7bzv8wkn.pdf" target="_blank" rel="noopener">15th May</a>, <a href="https://www.smartkarma.com/entities/peak-resources-ltd" target="_blank" data-smartkarma-citation="entities:19238:1" rel="noopener">Peak Rare Earths (PEK AU)</a> entered into a non-binding Offer, by way of a Scheme, with <a href="https://www.smartkarma.com/entities/shenghe-resources-holding-co-ltd" target="_blank" data-smartkarma-citation="entities:17058:1" rel="noopener">Shenghe Resources (600392 CH)</a> @A$0.389/share, a punchy 199% to undisturbed.</li>
<li>Shenghe holds 19.86% in Peak, and has offtake rights to 100% of the rare earth production from the 84%-held Ngualla project in Tanzania. </li>
<li>The Scheme Booklet was registered with ASIC on the 11th August with a 16th September Scheme Meeting. Shenghe has now bumped terms to A$0.443. Declared final. Scheme Meeting remains unchanged. </li>
</ul>


On the 15th May, Peak Rare Earths (PEK AU) entered into a non-binding Offer, by way of a Scheme, with Shenghe Resources (600392 CH) @A$0.389/share, a punchy 199% to undisturbed.
Shenghe holds 19.86% in Peak, and has offtake rights to 100% of the rare earth production from the 84%-held Ngualla project in Tanzania. 
The Scheme Booklet was registered with ASIC on the 11th August with a 16th September Scheme Meeting. Shenghe has now bumped terms to A$0.443. Declared final. Scheme Meeting remains unchanged. 


Peak Rare Earths (PEK AU): Shenghe Bumps And Declares Terms Final

Global Materials | Industrials | Commodities

Rahul Jain

Equity Bottom-Up

China Northern Rare Earth Group High-Tech / Equity Bottom-Up

China Northern Rare Earth Group High-Tech (600111 CH)

China Northern Rare Earth Group High-Tech

<ul>
<li>CNRE (600111.SH) posted record H1 FY25 profits with strong production and margin gains.</li>
<li>The company is ramping alloy, magnet, and separation capacity into 2026 to lift downstream integration.</li>
<li>Shares have surged over 200% in 12 months, leaving valuations stretched and bubble-like.</li>
</ul>


CNRE (600111.SH) posted record H1 FY25 profits with strong production and margin gains.
The company is ramping alloy, magnet, and separation capacity into 2026 to lift downstream integration.
Shares have surged over 200% in 12 months, leaving valuations stretched and bubble-like.


CNRE (600111.SH) – H1 FY25 Beat, Downstream Expansion; Valuations Look Stretched

China

Shenghe Resources Holding Co Ltd engages in all types of industrial investments, including sales, integrated application and processing, technical advice in rare earth metals, sales and processing of new rare earth materials; sales in chemical materials, import and export of various goods and technology, etc.

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Shenghe Resources Holding (600392 CH)

Northern Minerals (NTU AU): More Board Games

FIRB scrutiny regarding Chinese-linked investments and board control have overshadowed Northern Minerals. I'd be surprised if further similarly...

David Blennerhassett

Last Week In Event SPACE: ZEEKR/Geely, Kangji Medical, HKBN, Lynas, Huaxin Cement, Nidec

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

(Mostly) Asia-Pac M&A: Peak Rare Earths, Yutaka Giken, Shibaura, Johns Lyng, Ainsworth, Ashimori

This insight provides a summary of gross/annualised spreads (on deals discussed on Smartkarma) across Asia-Pacific as at the last trading date, and...

David Blennerhassett

Peak Rare Earths (PEK AU): Shenghe Bumps And Declares Terms Final

Clean deal. Tanzania's FCC will give the acquisition a hard look; but should give the green light, given Shenghe's offtake agreement. If small...

David Blennerhassett

CNRE (600111.SH) – H1 FY25 Beat, Downstream Expansion; Valuations Look Stretched

CNRE (600111.SH) achieved record profits in H1 FY25 due to production and margin gains.However, shares have surged over 200% in the past year,...

Rahul Jain

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Northern Minerals (NTU AU): More Board Games

FIRB scrutiny regarding Chinese-linked investments and board control have overshadowed Northern Minerals. I'd be surprised if further similarly...

David Blennerhassett

Last Week In Event SPACE: ZEEKR/Geely, Kangji Medical, HKBN, Lynas, Huaxin Cement, Nidec

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

(Mostly) Asia-Pac M&A: Peak Rare Earths, Yutaka Giken, Shibaura, Johns Lyng, Ainsworth, Ashimori

This insight provides a summary of gross/annualised spreads (on deals discussed on Smartkarma) across Asia-Pacific as at the last trading date, and...

David Blennerhassett

Peak Rare Earths (PEK AU): Shenghe Bumps And Declares Terms Final

Clean deal. Tanzania's FCC will give the acquisition a hard look; but should give the green light, given Shenghe's offtake agreement. If small...

David Blennerhassett

CNRE (600111.SH) – H1 FY25 Beat, Downstream Expansion; Valuations Look Stretched

​CNRE (600111.SH) achieved record profits in H1 FY25 due to production and margin gains.However, shares have surged over 200% in the past year,...

Rahul Jain

CNRE (600111.SH) achieved record profits in H1 FY25 due to production and margin gains.However, shares have surged over 200% in the past year,...