Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>After seven months had elapsed since receiving a preliminary non-binding proposal, <a href="https://www.smartkarma.com/entities/smart-share-global-limited" target="_blank" data-smartkarma-citation="entities:32217:1" rel="noopener">Smart Share Global (EM US)</a> announced on the 1st August a firm Offer (an MBO) had been entered into.</li>
<li>The Offeror consortium, led by Mars Guangyuan Cai, Chairman and CEO, is offering US$1.25/ADS, a 74.8% premium to last close; but ~20% below net cash + short-term investments.</li>
<li>Hillhouse upped the ante with a US$1.77/ADS NBIO. The share price hasn't closed below US$1.25/share since; but the reason may not just hinge on Hillhouse firming its Offer.</li>
</ul>


After seven months had elapsed since receiving a preliminary non-binding proposal, Smart Share Global (EM US) announced on the 1st August a firm Offer (an MBO) had been entered into.
The Offeror consortium, led by Mars Guangyuan Cai, Chairman and CEO, is offering US$1.25/ADS, a 74.8% premium to last close; but ~20% below net cash + short-term investments.
Hillhouse upped the ante with a US$1.77/ADS NBIO. The share price hasn't closed below US$1.25/share since; but the reason may not just hinge on Hillhouse firming its Offer.


Smart Share (EM US): On Stonewalling Hillhouse's Offer

APAC IPOs & Placements, Aequitas Research

Nicholas Tan

APAC IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/smart-share-global-limited" target="_blank" data-smartkarma-citation="entities:32217:1" rel="noopener">Smart Share Global (EM US)</a> , previously known as “Energy Monster”, is a rather interesting merger arbitrage situation.</li>
<li>It provides a unique risk/reward balance analogous to the famous adage, “heads I win, tails I don’t lose too much”.</li>
<li>In this note, we examine the company and the merger dynamics.</li>
</ul>



Smart Share Global (EM US) , previously known as “Energy Monster”, is a rather interesting merger arbitrage situation.
It provides a unique risk/reward balance analogous to the famous adage, “heads I win, tails I don’t lose too much”.
In this note, we examine the company and the merger dynamics.


Smart Share Global: An Interesting Merger Arb Play

<ul>
<li>Nearly seven months after receiving a preliminary non-binding proposal, <a href="https://www.smartkarma.com/entities/smart-share-global-limited" target="_blank" data-smartkarma-citation="entities:32217:1" rel="noopener">Smart Share Global (EM US)</a> announced on the 1st August a firm Offer had been entered into.</li>
<li>The Offeror consortium, led by Mars Guangyuan Cai, Chairman and CEO,  made an Offer of US$1.25/ADS, a 74.8% premium to last close; but ~20% below net cash + short-term investments.</li>
<li>Now Hillhouse has thrown its hat into the ring with a <a href="https://ir.enmonster.com/news-releases/news-release-details/smart-share-global-limited-announces-receipt-preliminary-non-0" target="_blank" rel="noopener">US$1.77/ADS NBIO</a>. Smart Share's special committee of independent directors should engage. </li>
</ul>


Nearly seven months after receiving a preliminary non-binding proposal, Smart Share Global (EM US) announced on the 1st August a firm Offer had been entered into.
The Offeror consortium, led by Mars Guangyuan Cai, Chairman and CEO,  made an Offer of US$1.25/ADS, a 74.8% premium to last close; but ~20% below net cash + short-term investments.
Now Hillhouse has thrown its hat into the ring with a US$1.77/ADS NBIO. Smart Share's special committee of independent directors should engage. 


Smart Share Global (EM US): Hillhouse Crashes The Party. And Rightfully So

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.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/smart-share-global-limited" target="_blank" data-smartkarma-citation="entities:32217:1" rel="noopener">Smart Share Global (EM US)</a> has disclosed a competing non-binding offer from Hillhouse at US$1.77 per ADS, a 41.6% premium to the Trustar offer.</li>
<li>The Hillhouse proposal meets the criteria for a superior proposal. The support agreement enables management rollover shareholders to switch allegiance from Trustar to Hillhouse.</li>
<li>Unlike the Trustar offer, the Hillhouse offer is above the last reported net cash (US$1.62 per ADS). The high premium suggests a low probability that Trustar bumps. </li>
</ul>



Smart Share Global (EM US) has disclosed a competing non-binding offer from Hillhouse at US$1.77 per ADS, a 41.6% premium to the Trustar offer.
The Hillhouse proposal meets the criteria for a superior proposal. The support agreement enables management rollover shareholders to switch allegiance from Trustar to Hillhouse.
Unlike the Trustar offer, the Hillhouse offer is above the last reported net cash (US$1.62 per ADS). The high premium suggests a low probability that Trustar bumps. 


Smart Share Global (EM US): Hillhouse Emerges with a Competing Offer

<ul>
<li>Nearly seven months after <a href="https://www.smartkarma.com/entities/smart-share-global-limited" target="_blank" data-smartkarma-citation="entities:32217:1" rel="noopener">Smart Share (EM US)</a>, the largest provider of mobile device charging services in China, announced a preliminary non-binding proposal, a firm Offer has been entered into.</li>
<li>Terms remains the same as the indicative NBIO: US$0.625/share (US$1.25/ADS), a 74.8% premium to last close. The Offeror comprises a consortium led by Mars Guangyuan Cai, Chairman and CEO.</li>
<li>Timing from here? Perhaps three to four months, or late November completion by my estimate. </li>
</ul>


Nearly seven months after Smart Share (EM US), the largest provider of mobile device charging services in China, announced a preliminary non-binding proposal, a firm Offer has been entered into.
Terms remains the same as the indicative NBIO: US$0.625/share (US$1.25/ADS), a 74.8% premium to last close. The Offeror comprises a consortium led by Mars Guangyuan Cai, Chairman and CEO.
Timing from here? Perhaps three to four months, or late November completion by my estimate. 


China

Smart Share Global Limited operates as a mobile device charging service provider. The Company offers mobile device charging services through an extensive online and offline network. Smart Share Global conducts businesses in China.

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