Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

China Boqi Environmental Hol / Event-Driven

<ul>
<li>On the 23rd October, flue gas treatment play <strong><a href="https://www.smartkarma.com/entities/china-boqi-environmental-hol" target="_blank" data-smartkarma-citation="entities:26771:1" rel="noopener">China Boqi Environmental Hol (2377 HK)</a></strong> announced a buyback of 15% of shares out, at HK$1.20/share, a 16.5% premium to undisturbed.</li>
<li>The buyback lifts the stake of co-founder Zeng Zhijun and concert parties to 32.59% - up from 27.71% - before options. To avoid an MGO, this requires a whitewash waiver</li>
<li>The <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/1128/2024112800878.pdf" target="_blank" rel="noopener">Offer Doc</a> is now out. The EGM - and the first close - is the 20th December. </li>
</ul>


On the 23rd October, flue gas treatment play China Boqi Environmental Hol (2377 HK) announced a buyback of 15% of shares out, at HK$1.20/share, a 16.5% premium to undisturbed.
The buyback lifts the stake of co-founder Zeng Zhijun and concert parties to 32.59% - up from 27.71% - before options. To avoid an MGO, this requires a whitewash waiver
The Offer Doc is now out. The EGM - and the first close - is the 20th December. 


Boqi Env (2377 HK)'s Partial Offer Now Open. But First The EGM

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/china-boqi-environmental-hol" target="_blank" data-smartkarma-citation="entities:26771:1" rel="noopener">China Boqi Environmental Hol (2377 HK)</a>'s share buyback is for a minimum of 100.6m shares (10.00% of outstanding shares) and a maximum of 150.9m shares (15.00%) at HK$1.20 per share.</li>
<li>The offer is conditional on satisfying the minimum acceptance condition, approval by the requisite majority of shareholders, and approval of the whitewash waiver. </li>
<li>The offer is attractive compared to peer multiples but unattractive compared to historical trading ranges. The shareholder structure and irrevocable paves the way for the offer to be declared unconditional. </li>
</ul>



China Boqi Environmental Hol (2377 HK)'s share buyback is for a minimum of 100.6m shares (10.00% of outstanding shares) and a maximum of 150.9m shares (15.00%) at HK$1.20 per share.
The offer is conditional on satisfying the minimum acceptance condition, approval by the requisite majority of shareholders, and approval of the whitewash waiver. 
The offer is attractive compared to peer multiples but unattractive compared to historical trading ranges. The shareholder structure and irrevocable paves the way for the offer to be declared unconditional. 


Boqi Environmental (2377 HK): Conditional Share Buyback at HK$1.20

<ul>
<li>
<a href="https://www.smartkarma.com/entities/china-boqi-environmental-hol" target="_blank" data-smartkarma-citation="entities:26771:1" rel="noopener">China Boqi Environmental Hol (2377 HK)</a> entered a trading halt based on the Hong Kong Code on Takeovers and Mergers. The shares have been up 39% since 30 September. </li>
<li>It is likely that management, representing 59.59% of outstanding shares, is seeking to privatise Boqi through a Cayman scheme. </li>
<li>Sinopec, a pre-IPO investor potentially holding a blocking stake, is likely seeking to exit. At the last close, Boqi trades in line with the median peers’ P/B multiple. </li>
</ul>



China Boqi Environmental Hol (2377 HK) entered a trading halt based on the Hong Kong Code on Takeovers and Mergers. The shares have been up 39% since 30 September. 
It is likely that management, representing 59.59% of outstanding shares, is seeking to privatise Boqi through a Cayman scheme. 
Sinopec, a pre-IPO investor potentially holding a blocking stake, is likely seeking to exit. At the last close, Boqi trades in line with the median peers’ P/B multiple. 


Boqi Environmental (2377 HK): Privatisation by Management?

<ul>
<li>The data in this insight is collated from the "shareholding disclosure" link on the HKEx website. </li>
<li>Often there is a corresponding HKEx announcement on the increase - or decrease - in the shareholding by directors. However, such disclosures are by no means an absolute. </li>
<li>These insights also flags those companies where shares have been pledged, both recently and ongoing.</li>
</ul>


The data in this insight is collated from the "shareholding disclosure" link on the HKEx website. 
Often there is a corresponding HKEx announcement on the increase - or decrease - in the shareholding by directors. However, such disclosures are by no means an absolute. 
These insights also flags those companies where shares have been pledged, both recently and ongoing.


Hong Kong CEO & Director Dealings - 18th July 2022

Guodian Technology & Environment Group / Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/guodian-technology-environment-group-corp" target="_blank" data-smartkarma-citation="entities:3941:1" rel="noopener">Guodian Technology &amp; Environment Group (1296 HK)</a>'s composite document is out with the H Shareholders’ class meeting on 20 May. The IFA considers the offer to be fair and reasonable. </li>
<li>The key condition for the privatisation is approval by at least 75% of independent H-shareholders (&lt;10% of all independent H-shareholders rejection). There is no minimum acceptance condition. </li>
<li>The H Shareholder with a blocking stake has provided an irrevocable. For a 9 June payment, the gross and annualised spread to the offer is 1.9% and 19.5%, respectively. </li>
</ul>



Guodian Technology &amp; Environment Group (1296 HK)'s composite document is out with the H Shareholders’ class meeting on 20 May. The IFA considers the offer to be fair and reasonable. 
The key condition for the privatisation is approval by at least 75% of independent H-shareholders (&lt;10% of all independent H-shareholders rejection). There is no minimum acceptance condition. 
The H Shareholder with a blocking stake has provided an irrevocable. For a 9 June payment, the gross and annualised spread to the offer is 1.9% and 19.5%, respectively. 


Guodian’s H Share Class Meeting on 20 May, IFA Opinion

China

Zhejiang Tengy Environmental Technology Co Limited is an atmospheric pollution control solutions provider. The Company provides precipitators & installations.

Zhejiang Tengy Environmental Tech (1527 HK)

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52-week Range	0.00 - 0.00
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Zhejiang Tengy Environmental Tech (1527 HK)

Boqi Env (2377 HK)'s Partial Offer Now Open. But First The EGM

If ~45% of the public shareholders tender, expect a min pro-ration of ~30%, implying a b/e price of HK$0.70/share, below the undisturbed price. Get...

David Blennerhassett

Boqi Environmental (2377 HK): Privatisation by Management?

Shares have been up 39% since 30 September, likely due to deal news leakage. Management, representing 60% of outstanding shares, is likely seeking...

Arun George

Hong Kong CEO & Director Dealings - 18th July 2022

The data in this insight is collated from the "shareholding disclosure" link on the HKEx website. These insights also flags those companies where...

David Blennerhassett

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Boqi Env (2377 HK)'s Partial Offer Now Open. But First The EGM

If ~45% of the public shareholders tender, expect a min pro-ration of ~30%, implying a b/e price of HK$0.70/share, below the undisturbed price. Get...

David Blennerhassett

Boqi Environmental (2377 HK): Conditional Share Buyback at HK$1.20

The offer is attractive vs. peer multiples but unattractive vs. historical trading ranges. The shareholder structure and irrevocable paves the way...

Arun George

Boqi Environmental (2377 HK): Privatisation by Management?

Shares have been up 39% since 30 September, likely due to deal news leakage. Management, representing 60% of outstanding shares, is likely seeking...

Arun George

Hong Kong CEO & Director Dealings - 18th July 2022

The data in this insight is collated from the "shareholding disclosure" link on the HKEx website. These insights also flags those companies where...

David Blennerhassett

Guodian’s H Share Class Meeting on 20 May, IFA Opinion

The IFA considers the offer to be fair and reasonable. The H Shareholder with a blocking stake provided an irrevocable on 28 Feb. For a 9 June...

Arun George