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.

Event-Driven

<ul>
<li>We summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.</li>
<li>Highest spreads: <a href="https://www.smartkarma.com/entities/slb-development-ltd" target="_blank" data-smartkarma-citation="entities:26989:1" rel="noopener">SLB Development (SLB SP)</a>, <a href="https://www.smartkarma.com/entities/japfa-ltd" target="_blank" data-smartkarma-citation="entities:15597:1" rel="noopener">Japfa Ltd (JAP SP)</a>, <a href="https://www.smartkarma.com/entities/seven-i-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:1041:1" rel="noopener">Seven &amp; I Holdings (3382 JP)</a>, <a href="https://www.smartkarma.com/entities/lifestyle-china-group-ltd" target="_blank" data-smartkarma-citation="entities:26090:1" rel="noopener">Lifestyle China (2136 HK)</a>, <a href="https://www.smartkarma.com/entities/get-nice-financial-group-ltd" target="_blank" data-smartkarma-citation="entities:29667:1" rel="noopener">Get Nice Financial Group Ltd (1469 HK)</a>.
</li>
<li>Lowest spreads: <a href="https://www.smartkarma.com/entities/makino-milling-machine-co" target="_blank" data-smartkarma-citation="entities:5200:1" rel="noopener">Makino Milling Machine Co (6135 JP)</a>, <a href="https://www.smartkarma.com/entities/avjennings-ltd" target="_blank" data-smartkarma-citation="entities:12578:1" rel="noopener">Avjennings Ltd (AVJ AU)</a>, <a href="https://www.smartkarma.com/entities/fuji-soft-inc" target="_blank" data-smartkarma-citation="entities:17504:1" rel="noopener">Fuji Soft Inc (9749 JP)</a>, <a href="https://www.smartkarma.com/entities/wide-bay-australia-ltd" target="_blank" data-smartkarma-citation="entities:18747:1" rel="noopener">Auswide Bank (ABA AU)</a>, <a href="https://www.smartkarma.com/entities/pressance-corp" target="_blank" data-smartkarma-citation="entities:17783:1" rel="noopener">Pressance Corp (3254 JP)</a>. 
</li>
</ul>


We summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
Highest spreads: SLB Development (SLB SP), Japfa Ltd (JAP SP), Seven &amp; I Holdings (3382 JP), Lifestyle China (2136 HK), Get Nice Financial Group Ltd (1469 HK).

Lowest spreads: Makino Milling Machine Co (6135 JP), Avjennings Ltd (AVJ AU), Fuji Soft Inc (9749 JP), Auswide Bank (ABA AU), Pressance Corp (3254 JP). 



Merger Arb Mondays (27 Jan) - Fosun Tourism, Get Nice, Lifestyle China, Canvest, Japfa, SLB

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>Singaporean construction firm <a href="https://www.smartkarma.com/entities/lian-beng-group-ltd" target="_blank" data-smartkarma-citation="entities:17636:1" rel="noopener">Lian Beng (LBG SP)</a> has <a href="https://links.sgx.com/FileOpen/Offer_Announcement.ashx?App=Announcement&amp;FileID=753708" target="_blank" rel="noopener">announced</a> a voluntary unconditional cash Offer from the controlling Ong family, via investment holding company OSC Capital.</li>
<li>The Offer Price of S$0.62/share (not declared final) is a mediocre 8.8% premium to last close and a 59.7% discount to the 30 November 2022 NAV of S$1.538/share.</li>
<li>The announcement fails to mention the NAV/share. The IFA considered the 2021 Mandatory Offer of S$0.50/share not fair and not reasonable. Expect a similar conclusion </li>
</ul>


Singaporean construction firm Lian Beng (LBG SP) has announced a voluntary unconditional cash Offer from the controlling Ong family, via investment holding company OSC Capital.
The Offer Price of S$0.62/share (not declared final) is a mediocre 8.8% premium to last close and a 59.7% discount to the 30 November 2022 NAV of S$1.538/share.
The announcement fails to mention the NAV/share. The IFA considered the 2021 Mandatory Offer of S$0.50/share not fair and not reasonable. Expect a similar conclusion 


<ul>
<li>
<a href="https://www.smartkarma.com/entities/chip-eng-seng-corp-ltd" target="_blank" data-smartkarma-citation="entities:6441:1" rel="noopener">Chip Eng Seng Corp (CHIP SP)</a> disclosed a revised conditional VGO from the Tangs at S$0.75, a 4.2% premium to the previous offer of S$0.72. The offer is final.</li>
<li>The offeror (47.27% of outstanding shares) and immediate family represent 50.49% of outstanding shares or 48.63% of diluted shares, which is just shy of the 50%+ minimum acceptance condition. </li>
<li>The bump was to increase the chances of privatisation rather than hitting the 50%+ minimum acceptance condition. At the last close, the gross spread is 1.4%. </li>
</ul>



Chip Eng Seng Corp (CHIP SP) disclosed a revised conditional VGO from the Tangs at S$0.75, a 4.2% premium to the previous offer of S$0.72. The offer is final.
The offeror (47.27% of outstanding shares) and immediate family represent 50.49% of outstanding shares or 48.63% of diluted shares, which is just shy of the 50%+ minimum acceptance condition. 
The bump was to increase the chances of privatisation rather than hitting the 50%+ minimum acceptance condition. At the last close, the gross spread is 1.4%. 


Chip Eng Seng (CHIP SP)’s Revised S$0.75 VGO from the Tangs

<ul>
<li>
<a href="https://www.smartkarma.com/entities/chip-eng-seng-corp-ltd" target="_blank" data-smartkarma-citation="entities:6441:1" rel="noopener">Chip Eng Seng Corp (CHIP SP)</a> disclosed a conditional VGO from the Tangs at S$0.720, a 6.7% premium to the undisturbed price (6 September). The price is not declared final. </li>
<li>Irrevocables and family represent 41.44% of outstanding shares. The VGO has a 50%+ minimum acceptance condition which requires around a 15% minorities acceptance rate.</li>
<li>While the last close is in line with the offer, it is attractive in the context of historical prices/multiples. Therefore, there is a good chance of hitting the 50% threshold.</li>
</ul>



Chip Eng Seng Corp (CHIP SP) disclosed a conditional VGO from the Tangs at S$0.720, a 6.7% premium to the undisturbed price (6 September). The price is not declared final. 
Irrevocables and family represent 41.44% of outstanding shares. The VGO has a 50%+ minimum acceptance condition which requires around a 15% minorities acceptance rate.
While the last close is in line with the offer, it is attractive in the context of historical prices/multiples. Therefore, there is a good chance of hitting the 50% threshold.


Chip Eng Seng (CHIP SP)’s S$0.72 VGO from the Tangs

Singapore and emerging market real estate

Royston Foo

Thematic (Sector/Industry)

Top Singapore property news this week that you need to know.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/053/978/original/20180530_jurong_country_club_today.jpg?1527821569" class="editor-image img-responsive" data-smartkarma-image-id="53978"></figure><div class="content-caption">Jurong Lake District</div>Policies and Planning<a href="https://www.businesstimes.com.sg/government-economy/high-speed-rail-loss-a-setback-not-knockout-blow-to-jurong" target="_blank">29th May 2018 - High-speed rail loss 'a setback, not knockout blow to Jurong'</a>Royston Foo: Singapore’s second CBD in Jurong is a government-driven initiative and it was not built on the premise of having the High-Speed Rail connectivity. As long as Singapore government remains committed to the second CBD project, the Jurong area will continue to develop. Nonetheless, near-term sentiment towards…

Top Singapore property news this week that you need to know.Jurong Lake DistrictPolicies and Planning29th May 2018 - High-speed rail loss 'a setback, not knockout blow to Jurong'Royston Foo: Singapore’s second CBD in Jurong is a government-driven initiative and it was not built on the premise of having the High-Speed Rail connectivity. As long as Singapore government remains committed to the second CBD project, the Jurong area will continue to develop. Nonetheless, near-term sentiment towards…

Singapore Property Weekly Recap (26th May to 1st Jun 2018)

Singapore

SLB Development Ltd. operates as a property development company. The Company develops industrial, commercial, and retail properties.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

SLB Development (SLB SP)

Merger Arb Mondays (27 Jan) - Fosun Tourism, Get Nice, Lifestyle China, Canvest, Japfa, SLB

This week, the highest gross spreads are SLB Development (36.1%), Japfa (17.0%), Seven & I (16.8%), Lifestyle China (15.3%), Get Nice Financial...

Arun George

Lian Beng: Family Takeout At <50% of NAV

Optically, and factoring in Lin Beng's illiquid volume, there's probably enough here to get it over the line. Buy a spread or two below terms. This...

David Blennerhassett

Chip Eng Seng (CHIP SP)’s Revised S$0.75 VGO from the Tangs

The bump was to increase the chances of privatisation rather than hitting the 50%+ minimum acceptance condition. At the last close, the gross...

Arun George

Chip Eng Seng (CHIP SP)’s S$0.72 VGO from the Tangs

The price is not declared final. There is a good chance of hitting the 50% minimum acceptance threshold. Not worth chasing through terms in hopes...

Arun George

Singapore Property Weekly Recap (26th May to 1st Jun 2018)

Top Singapore property news this week that you need to know.Policies and Planning29th May 2018 - High-speed rail loss 'a setback, not knockout blow...

Royston Foo

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)