Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Yashili International Holdings / Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/yashili-international-holdings-ltd" target="_blank" data-smartkarma-citation="entities:3397:1" rel="noopener">Yashili International Holdings (1230 HK)</a> has <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2022/0506/2022050602098.pdf" target="_blank" rel="noopener">announced</a> a pre-conditional Offer, by way of a Scheme, from <a href="https://www.smartkarma.com/entities/china-mengniu-dairy-co" target="_blank" data-smartkarma-citation="entities:354:1" rel="noopener">China Mengniu Dairy Co (2319 HK)</a>.</li>
<li>The cancellation price of HK$1.20/share, a 31.9% premium to last close, and a 161% premium to the undisturbed price, is in line with the <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2022/0316/2022031601535.pdf" target="_blank" rel="noopener">16 March announcement</a>.</li>
<li>Conditions involve various business disposals and the exit of <a href="https://www.smartkarma.com/entities/danone-sa" target="_blank" data-smartkarma-citation="entities:21403:1" rel="noopener">Danone SA (BN FP)</a>'s stake in Yashili;  yet apart from timing, which is contingent on regulatory approvals, this looks done. </li>
</ul>



Yashili International Holdings (1230 HK) has announced a pre-conditional Offer, by way of a Scheme, from China Mengniu Dairy Co (2319 HK).
The cancellation price of HK$1.20/share, a 31.9% premium to last close, and a 161% premium to the undisturbed price, is in line with the 16 March announcement.
Conditions involve various business disposals and the exit of Danone SA (BN FP)'s stake in Yashili;  yet apart from timing, which is contingent on regulatory approvals, this looks done. 


Yashili (1230 HK)'s Pre-Conditional Offer From Mengniu

<ul>
<li>
<a href="https://www.smartkarma.com/entities/china-mengniu-dairy-co" target="_blank" data-smartkarma-citation="entities:354:1" rel="noopener">China Mengniu (2319 HK)</a> is in discussions regarding its holdings in <a href="https://www.smartkarma.com/entities/yashili-international-holdings-ltd" target="_blank" data-smartkarma-citation="entities:3397:1" rel="noopener">Yashili (1230 HK)</a> which may result in a number of Potential Transactions, and may include a pre-conditional privatisation offer.</li>
<li>The Potential Offer would involve a cancellation price of HK$1.20/share, a 31.9% premium to last close, and a 161% premium to the undisturbed price. </li>
<li>The recent privatisation of key peer <a href="https://www.smartkarma.com/entities/ausnutria-dairy-corp-ltd" target="_blank" data-smartkarma-citation="entities:13799:1" rel="noopener">Ausnutria Dairy Corp (1717 HK)</a> provides a guideline to the timeline from here.</li>
</ul>



China Mengniu (2319 HK) is in discussions regarding its holdings in Yashili (1230 HK) which may result in a number of Potential Transactions, and may include a pre-conditional privatisation offer.
The Potential Offer would involve a cancellation price of HK$1.20/share, a 31.9% premium to last close, and a 161% premium to the undisturbed price. 
The recent privatisation of key peer Ausnutria Dairy Corp (1717 HK) provides a guideline to the timeline from here.


Yashili (1230 HK): Possible Mengniu Offer Amid Exchange Rights And Phantom Shares

Yorkey Optical International Cayman / Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/yorkey-optical-international-cayman" target="_blank" data-smartkarma-citation="entities:12407:1" rel="noopener">Yorkey Optical International Cayman (2788 HK)</a>'s Scheme Document is now out, with the Court Meeting to be held on the 22 February.</li>
<li>
<a href="https://www.smartkarma.com/entities/asia-optical-co-inc" target="_blank" data-smartkarma-citation="entities:11214:1" rel="noopener">Asia Optical (3019 TT)</a> is offering HK$0.999/share, a 75.3% premium to the undisturbed close. David Webb has given an irrevocable undertaking to vote his shares in favour of the Scheme </li>
<li>This transaction is all stitched up. The Independent Financial Advisor considers the terms to be fair and reasonable. </li>
</ul>



Yorkey Optical International Cayman (2788 HK)'s Scheme Document is now out, with the Court Meeting to be held on the 22 February.

Asia Optical (3019 TT) is offering HK$0.999/share, a 75.3% premium to the undisturbed close. David Webb has given an irrevocable undertaking to vote his shares in favour of the Scheme 
This transaction is all stitched up. The Independent Financial Advisor considers the terms to be fair and reasonable. 


Yorkey Optical (2788 HK): Court Meeting On 22 Feb. IFA Says Fair

<ul>
<li>
<a href="https://www.smartkarma.com/entities/asia-optical-co-inc" target="_blank" data-smartkarma-citation="entities:11214:1" rel="noopener">Asia Optical Co (3019 TT)</a> has <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2022/0104/2022010401243.pdf%20https://www.smartkarma.com/discussion/121157" target="_blank" rel="noopener">bumped</a> its Scheme Offer Price for <a href="https://www.smartkarma.com/entities/yorkey-optical-international-cayman" target="_blank" data-smartkarma-citation="entities:12407:1" rel="noopener">Yorkey Optical International (2788 HK)</a> to HK$0.999/share, a 13.5% increase over its original Offer Price of HK$0.88/share.</li>
<li>David Webb, who previously indicated the original price was inadequate, has given an irrevocable undertaking to vote his 49.588mn shares (10.4% of Independent Scheme Shares) in favour of the Scheme  </li>
<li>This transaction is now done. The Scheme Document is expected to be dispatched on the 25 January suggesting payment early April.</li>
</ul>



Asia Optical Co (3019 TT) has bumped its Scheme Offer Price for Yorkey Optical International (2788 HK) to HK$0.999/share, a 13.5% increase over its original Offer Price of HK$0.88/share.
David Webb, who previously indicated the original price was inadequate, has given an irrevocable undertaking to vote his 49.588mn shares (10.4% of Independent Scheme Shares) in favour of the Scheme  
This transaction is now done. The Scheme Document is expected to be dispatched on the 25 January suggesting payment early April.


Yorkey Optical (2788 HK): Webb Backs Asia Optical's Bump

<ul>
<li>After reassessing <a href="https://www.smartkarma.com/entities/yorkey-optical-international-cayman" target="_blank" data-smartkarma-citation="entities:12407:1" rel="noopener">Yorkey Optical International (2788 HK)</a>'s property interest, Jones Lang LaSalle's revised NAV increases to $0.94/share, from $0.818/share as at June 30, compared to the cancellation price of $0.88/share.</li>
<li>David Webb, whose holding in Yorkey is sufficient to disrupt the Scheme vote, assessed an increase in the NAV of HK$0.365/share when properties were booked to market.</li>
<li>Note: the Offer Price has still not been declared final.</li>
</ul>


After reassessing Yorkey Optical International (2788 HK)'s property interest, Jones Lang LaSalle's revised NAV increases to $0.94/share, from $0.818/share as at June 30, compared to the cancellation price of $0.88/share.
David Webb, whose holding in Yorkey is sufficient to disrupt the Scheme vote, assessed an increase in the NAV of HK$0.365/share when properties were booked to market.
Note: the Offer Price has still not been declared final.


Yorkey Optical (2788 HK): JLL Meets Asia Optical And Webb Halfway... Sort Of...

Hong Kong

Yorkey Optical International Cayman Ltd. manufactures plastic and metal parts and components of optical and optoelectronic products.  The Company produces parts for copiers, computer peripherals, handsets, film cameras, and other products.

Yorkey Optical International Cayman (2788 HK)

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Yorkey Optical International Cayman (2788 HK)

Yashili (1230 HK)'s Pre-Conditional Offer From Mengniu

HK$1.20/share will get up. I'd be a buyer here. I'd probably bid up to ~HK$1.13/share or a gross/annualised spread of 6.2%/15%.

David Blennerhassett

Yashili (1230 HK): Possible Mengniu Offer Amid Exchange Rights And Phantom Shares

I'd be a buyer here. There appears to be a directive to take these milk formula companies private. Mengniu is state-backed, and this is not a large...

David Blennerhassett

Yorkey Optical (2788 HK): Court Meeting On 22 Feb. IFA Says Fair

Trading at a 3.0%/18.3% gross/annualised spread. That looks like the right level. It may narrow a spread following the release of this Scheme Doc....

David Blennerhassett

Yorkey Optical (2788 HK): Webb Backs Asia Optical's Bump

This transaction is done. I'd probably pay up to ~HK$0.97 or a 3.0%/11.4% gross/annualised spread, assuming early April completion. However, this...

David Blennerhassett

Yorkey Optical (2788 HK): JLL Meets Asia Optical And Webb Halfway... Sort Of...

I still believe Asia Optical needs to bump, at least at, or slightly above the reassessed NAV, even if Webb considers that revised NAV falls short.

David Blennerhassett

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