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>On 27 December 2024, <a href="https://www.smartkarma.com/entities/vesync" target="_blank" data-smartkarma-citation="entities:31067:1" rel="noopener">Vesync (2148 HK)</a> disclosed a Cayman scheme privatisation offer from the Yang family at HK$5.60. On 28 January, the antitrust condition was satisfied.   </li>
<li>Despite a light offer, the scheme vote is low-risk. No disinterested shareholder holds a blocking stake, there is a scrip option with no cap, and there is no retail opposition. </li>
<li>The scheme document will be despatched by 11 April. At the last close and for an end-of-May payment, the gross and annualised spread is 6.9% and 22.7%, respectively.  </li>
</ul>


On 27 December 2024, Vesync (2148 HK) disclosed a Cayman scheme privatisation offer from the Yang family at HK$5.60. On 28 January, the antitrust condition was satisfied.   
Despite a light offer, the scheme vote is low-risk. No disinterested shareholder holds a blocking stake, there is a scrip option with no cap, and there is no retail opposition. 
The scheme document will be despatched by 11 April. At the last close and for an end-of-May payment, the gross and annualised spread is 6.9% and 22.7%, respectively.  


Vesync (2148 HK): Antitrust Condition Satisfied, and the Scheme Vote Remains Low-Risk

<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/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/get-nice-financial-group-ltd" target="_blank" data-smartkarma-citation="entities:29667:1" rel="noopener">Get Nice Financial Group Ltd (1469 HK)</a>,  <a href="https://www.smartkarma.com/entities/arcadium-lithium-plc" target="_blank" data-smartkarma-citation="entities:40438:1" rel="noopener">Arcadium Lithium (LTM AU)</a>, <a href="https://www.smartkarma.com/entities/esr-group-ltd" target="_blank" data-smartkarma-citation="entities:27983:1" rel="noopener">ESR Group (1821 HK)</a>, <a href="https://www.smartkarma.com/entities/goldlion-holdings-ltd" target="_blank" data-smartkarma-citation="entities:12359:1" rel="noopener">Goldlion Holdings (533 HK)</a>. </li>
<li>Lowest spreads: <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/renewable-japan-co-ltd" target="_blank" data-smartkarma-citation="entities:35211:1" rel="noopener">Renewable Japan (9522 JP)</a>, <a href="https://www.smartkarma.com/entities/macromill-inc" target="_blank" data-smartkarma-citation="entities:24026:1" rel="noopener">Macromill, Inc (3978 JP)</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/nec-networks-system-integr" target="_blank" data-smartkarma-citation="entities:16396:1" rel="noopener">Nec Networks &amp; System Integr (1973 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: Seven &amp; I Holdings (3382 JP), Get Nice Financial Group Ltd (1469 HK),  Arcadium Lithium (LTM AU), ESR Group (1821 HK), Goldlion Holdings (533 HK). 
Lowest spreads: Lifestyle China (2136 HK), Renewable Japan (9522 JP), Macromill, Inc (3978 JP), Fuji Soft Inc (9749 JP), Nec Networks &amp; System Integr (1973 JP). 



Merger Arb Mondays (06 Jan) - Vesync, Canvest, Get Nice, Fosun Tourism, GAPack, HKBN, Seven & I

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>When <a href="https://www.smartkarma.com/entities/vesync" target="_blank" data-smartkarma-citation="entities:31067:1" rel="noopener">Vesync (2148 HK)</a>, a manufacturer of small home appliances, was suspended pursuant to the Takeovers Code, an Offer from the Yang family, led by chairman/CEO, controlling ~69.04%, was expected.</li>
<li>And on cue, that is what unfolded. <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/1227/2024122701148.pdf" target="_blank" rel="noopener">HK$5.60/share</a>, a premium of 33.33%, by way of a Scheme. The price is final. A scrip option afforded. No dividends.</li>
<li>The blocking stake is 1.675%. Expect around fourth months to complete. This is done.</li>
</ul>


When Vesync (2148 HK), a manufacturer of small home appliances, was suspended pursuant to the Takeovers Code, an Offer from the Yang family, led by chairman/CEO, controlling ~69.04%, was expected.
And on cue, that is what unfolded. HK$5.60/share, a premium of 33.33%, by way of a Scheme. The price is final. A scrip option afforded. No dividends.
The blocking stake is 1.675%. Expect around fourth months to complete. This is done.


Vesync (2148 HK): 33.3% Premium For An Illiquid Arb - Yep, This Is Done.

HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/vesync" target="_blank" data-smartkarma-citation="entities:31067:1" rel="noopener">Vesync (2148 HK)</a>'s major shareholders proposed to privatise at HK$5.60, a 33.3% premium to the pre-suspension price. This is the same as we calculated using the 3-year average P/B. </li>
<li>At such a price, it will sit at 7.6x PER for FY25F, a level that it only touched briefly 3 times in the last two years. </li>
<li>This PER is at a 25-30% discount to the sector and justified by its smaller size and lesser diversification. All in all, the proposed price looks fair and reasonable.</li>
</ul>



Vesync (2148 HK)'s major shareholders proposed to privatise at HK$5.60, a 33.3% premium to the pre-suspension price. This is the same as we calculated using the 3-year average P/B. 
At such a price, it will sit at 7.6x PER for FY25F, a level that it only touched briefly 3 times in the last two years. 
This PER is at a 25-30% discount to the sector and justified by its smaller size and lesser diversification. All in all, the proposed price looks fair and reasonable.


Vesync (2148 HK): Proposed Privatisation at HK$5.60 Fair and Reasonable

<ul>
<li>
<a href="https://www.smartkarma.com/entities/vesync" target="_blank" data-smartkarma-citation="entities:31067:1" rel="noopener">Vesync (2148 HK)</a> disclosed a Cayman scheme privatisation offer from the Yang family at HK$5.60, a 33.3% premium to the last close price of HK$4.20. The offer is final.   </li>
<li>While the offer is marginally above the IPO price, it is light compared to sell-side price targets, peer multiples and historical trading ranges.</li>
<li>Nevertheless, the scrip option, irrevocables and no disinterested shareholder holding a blocking stake facilitate the scheme vote. The offer could be completed by May. </li>
</ul>



Vesync (2148 HK) disclosed a Cayman scheme privatisation offer from the Yang family at HK$5.60, a 33.3% premium to the last close price of HK$4.20. The offer is final.   
While the offer is marginally above the IPO price, it is light compared to sell-side price targets, peer multiples and historical trading ranges.
Nevertheless, the scrip option, irrevocables and no disinterested shareholder holding a blocking stake facilitate the scheme vote. The offer could be completed by May. 


Vesync (2148 HK): The Yang Family’s Scheme Offer Is Light but Likely Done

China

Vesync Co Ltd develops smart home platform that connect air quality, health monitoring, kitchen, lighting, and outlet systems.The Company helps users to manage home, save energy, and bring remote items within handheld reach.

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Vesync (2148 HK)

Vesync (2148 HK): Antitrust Condition Satisfied, and the Scheme Vote Remains Low-Risk

Despite a light offer, the scheme vote is low-risk. No disinterested shareholder holds a blocking stake, there is a scrip option with no cap, and...

Arun George

Merger Arb Mondays (06 Jan) - Vesync, Canvest, Get Nice, Fosun Tourism, GAPack, HKBN, Seven & I

This week, the highest gross spreads are Seven & I (15.0%), Get Nice Financial (11.6%), Arcadium Lithium (11.0%), ESR (8.9%), Goldlion (7.3%),...

Arun George

Vesync (2148 HK): 33.3% Premium For An Illiquid Arb - Yep, This Is Done.

This is all stitched up. No competing Offer will emerge. I'd pay up to HK$5.35/share for around a 5%/15% gross/annualised spread.

David Blennerhassett

Vesync (2148 HK): Proposed Privatisation at HK$5.60 Fair and Reasonable

Vesync's major shareholders propose to privatise it at HK$5.60, a 33.3% premium. We consider this a fair and reasonable price based on PER, P/B,...

Osbert Tang, CFA

Vesync (2148 HK): The Yang Family’s Scheme Offer Is Light but Likely Done

The offer is light. Nevertheless, the scrip option, the irrevocables, and the absence of a disinterested shareholder holding a blocking stake...

Arun George

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Vesync (2148 HK): Antitrust Condition Satisfied, and the Scheme Vote Remains Low-Risk

Despite a light offer, the scheme vote is low-risk. No disinterested shareholder holds a blocking stake, there is a scrip option with no cap, and...

Arun George

Merger Arb Mondays (06 Jan) - Vesync, Canvest, Get Nice, Fosun Tourism, GAPack, HKBN, Seven & I

This week, the highest gross spreads are Seven & I (15.0%), Get Nice Financial (11.6%), Arcadium Lithium (11.0%), ESR (8.9%), Goldlion (7.3%),...

Arun George

Vesync (2148 HK): 33.3% Premium For An Illiquid Arb - Yep, This Is Done.

This is all stitched up. No competing Offer will emerge. I'd pay up to HK$5.35/share for around a 5%/15% gross/annualised spread.

David Blennerhassett

Vesync (2148 HK): Proposed Privatisation at HK$5.60 Fair and Reasonable

​Vesync's major shareholders propose to privatise it at HK$5.60, a 33.3% premium. We consider this a fair and reasonable price based on PER, P/B,...

Osbert Tang, CFA

Vesync (2148 HK): The Yang Family’s Scheme Offer Is Light but Likely Done

The offer is light. Nevertheless, the scrip option, the irrevocables, and the absence of a disinterested shareholder holding a blocking stake...

Arun George

Vesync's major shareholders propose to privatise it at HK$5.60, a 33.3% premium. We consider this a fair and reasonable price based on PER, P/B,...