Arun George

Global Equity Research Ltd

Event-Driven

<ul>
<li>The scheme document is out with the Court meeting scheduled for 10 June. The IFA considers the offer to be fair and reasonable. <a href="https://www.smartkarma.com/entities/suchuang-gas-corp-ltd" target="_blank" data-smartkarma-citation="entities:304:1" rel="noopener">Suchuang Gas Corp (1430 HK)</a> remains suspended.</li>
<li>Key conditions are the headcount test and approval by at least 75% of disinterested shareholders (&lt;10% of all disinterested shareholders rejection). </li>
<li>Excluding the irrecovables, no shareholder holds a blocking stake. As the timeframe to fulfil the resumption guidance remains highly uncertain, the offer is a welcome exit opportunity. </li>
</ul>

David Blennerhassett

Quiddity Advisors

<ul>
<li>
<a href="https://www.smartkarma.com/entities/suchuang-gas-corp-ltd" target="_blank" data-smartkarma-citation="entities:304:1" rel="noopener">Suchuang Gas Corp (1430 HK)</a>'s Scheme Document is now out. The Scheme Meeting will be held on the 10th June with expected payment on or before the 21 June. </li>
<li>The Independent Financial Advisor (Essence International) has concluded the offer by <a href="https://www.smartkarma.com/entities/china-resources-gas-group-ltd" target="_blank" data-smartkarma-citation="entities:20525:1" rel="noopener">CR Gas (1193 HK)</a> is fair and reasonable. </li>
<li>The pain is almost over for shareholders. This is as good a deal one can expect under the circumstances. Shareholders should vote through the Offer resolutions and pocket the cash. </li>
</ul>

<ul>
<li>
<a href="https://www.smartkarma.com/entities/china-resources-gas-group-ltd" target="_blank" data-smartkarma-citation="entities:20525:1" rel="noopener">CR Gas (1193 HK)</a>’s privatisation bid for <a href="https://www.smartkarma.com/entities/suchuang-gas-corp-ltd" target="_blank" data-smartkarma-citation="entities:304:1" rel="noopener">Suchuang Gas Corp (1430 HK)</a> was derailed by the trading suspension due to the disclosure of previously unaccounted for pledges/guarantees by subsidiaries.</li>
<li>The controlling shareholders have attempted to keep the offer alive by agreeing to fully indemnify CR Gas for losses related to the pledges/guarantees.</li>
<li>The long stop date of the offer was extended to 31 August 2022. The key risk is that the timeframe to fulfil the resumption guidance exceeds the long stop date. </li>
</ul>

<ul>
<li>Shortly after piped natural gas operator <a href="https://www.smartkarma.com/entities/suchuang-gas-corp-ltd" target="_blank" data-smartkarma-citation="entities:304:1" rel="noopener">Suchuang Gas Corp (1430 HK)</a> announced a privatisation Offer from <a href="https://www.smartkarma.com/entities/china-resources-gas-group-ltd" target="_blank" data-smartkarma-citation="entities:20525:1" rel="noopener">CR Gas (1193 HK)</a> last August, shares were suspended. And remain suspended today.</li>
<li>That suspension pivoted off previously unreleased information that certain bank deposits of Suchuang Gas' subsidiaries had been pledged. </li>
<li>An investigation remains ongoing. A material portion of those pledges have defaulted. Financial results have been delayed. However, the Offer appears to still be moving forward. </li>
</ul>

<ul>
<li>There are 49 - mostly firm - transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.</li>
<li>Two new deals this week: <a href="https://www.smartkarma.com/entities/giordano-international-ltd" target="_blank" data-smartkarma-citation="entities:13899:1" rel="noopener">Giordano International (709 HK)</a>'s low-balled Offer; and <a href="https://www.smartkarma.com/entities/uniden-holdings-corp" target="_blank" data-smartkarma-citation="entities:8611:1" rel="noopener">Uniden Holdings (6815 JP)</a>'s MBO. Rumours on <a href="https://www.smartkarma.com/entities/toshiba-corp" target="_blank" data-smartkarma-citation="entities:637:1" rel="noopener">Toshiba Corp (6502 JP)</a> also.</li>
<li>Key updates took place for: <a href="https://www.smartkarma.com/entities/narhex-life-sciences-ltd" target="_blank" data-smartkarma-citation="entities:9728:1" rel="noopener">Resapp Health (RAP AU)</a>, <a href="https://www.smartkarma.com/entities/infomedia-ltd" target="_blank" data-smartkarma-citation="entities:11385:1" rel="noopener">Infomedia Ltd (IFM AU)</a>, <a href="https://www.smartkarma.com/entities/link-net-tbk-pt" target="_blank" data-smartkarma-citation="entities:1050:1" rel="noopener">Link Net (LINK IJ)</a>, <a href="https://www.smartkarma.com/entities/toyo-construction-co-ltd" target="_blank" data-smartkarma-citation="entities:1176:1" rel="noopener">Toyo Construction (1890 JP)</a>, &amp; <a href="https://www.smartkarma.com/entities/sph-reit" target="_blank" data-smartkarma-citation="entities:5994:1" rel="noopener">SPH REIT (SPHREIT SP)</a> </li>
</ul>

China

Suchuang Gas Corporation Limited sells and transmits piped natural gas to users operating in the Taicang, Jiangsu Province area of the People's Republic of China.

Suchuang Gas Corp - 1430 HK

Description