IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

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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

Lifestyle International Holdings / Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/lifestyle-international-holdings-ltd" target="_blank" data-smartkarma-citation="entities:112:1" rel="noopener">Lifestyle International Holdings (1212 HK)</a>’s vote on Mr Lau’s offer of HK$5.00 per share is at 10 am on Monday, 21 November. The wide spread of 6.6% reflects vote risk.</li>
<li>Key conditions include approval by at least 75% of independent shareholders (&lt;10% of independent shareholders rejection). No shareholder holds a blocking stake. </li>
<li>Ongoing weak Hong Kong retail sales and peers’ slightly de-rating should lower the vote risk. Headcount test not applicable. While light, we continue to expect the offer to succeed.</li>
</ul>



Lifestyle International Holdings (1212 HK)’s vote on Mr Lau’s offer of HK$5.00 per share is at 10 am on Monday, 21 November. The wide spread of 6.6% reflects vote risk.
Key conditions include approval by at least 75% of independent shareholders (&lt;10% of independent shareholders rejection). No shareholder holds a blocking stake. 
Ongoing weak Hong Kong retail sales and peers’ slightly de-rating should lower the vote risk. Headcount test not applicable. While light, we continue to expect the offer to succeed.


Lifestyle International (1212 HK)’s Wide Spread Heading into the 21 November Vote

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>Back on the 5 August, Thomas Yau, <strong><a href="https://www.smartkarma.com/entities/lifestyle-international-holdings-ltd" target="_blank" data-smartkarma-citation="entities:112:1" rel="noopener">Lifestyle International Holdings (1212 HK)</a></strong>'s controlling shareholder, tabled a Scheme at HK$5/share, a 62.3% premium to last close.  </li>
<li>The Scheme Doc is now out with the Court Meeting on the 21st of November. The outcome of this transaction will pivot off the reassessed net asset value of HK$10.60/share.</li>
<li>Trading at a gross spread of 9.6% using yesterday's close, reflecting the perceived opportunistic nature of the Offer. Yet Hong Kong's 2018 visitor glory days remain a long way off. </li>
</ul>


Back on the 5 August, Thomas Yau, Lifestyle International Holdings (1212 HK)'s controlling shareholder, tabled a Scheme at HK$5/share, a 62.3% premium to last close.  
The Scheme Doc is now out with the Court Meeting on the 21st of November. The outcome of this transaction will pivot off the reassessed net asset value of HK$10.60/share.
Trading at a gross spread of 9.6% using yesterday's close, reflecting the perceived opportunistic nature of the Offer. Yet Hong Kong's 2018 visitor glory days remain a long way off. 


Lifestyle (1212 HK): Timing Is Everything As Shareholders Go To Vote on 21 Nov

<ul>
<li>The <a href="https://www.smartkarma.com/entities/lifestyle-international-holdings-ltd" target="_blank" data-smartkarma-citation="entities:112:1" rel="noopener">Lifestyle International Holdings (1212 HK)</a> scheme document is out with the court meeting scheduled for 21 November. The IFA considers the HK$5.00 offer to be fair and reasonable. </li>
<li>Key conditions include approval by at least 75% of independent shareholders (&lt;10% rejection). Headcount test not applicable. No shareholder holds a blocking stake.</li>
<li>The offer is light but likely to succeed. At last close and for a 30 December payment, the gross and annualised spread to the offer is 9.6% and 65.7%, respectively.</li>
</ul>


The Lifestyle International Holdings (1212 HK) scheme document is out with the court meeting scheduled for 21 November. The IFA considers the HK$5.00 offer to be fair and reasonable. 
Key conditions include approval by at least 75% of independent shareholders (&lt;10% rejection). Headcount test not applicable. No shareholder holds a blocking stake.
The offer is light but likely to succeed. At last close and for a 30 December payment, the gross and annualised spread to the offer is 9.6% and 65.7%, respectively.


Lifestyle International’s Court Meeting on 21 November

Zhuhai Holdings Investment / Event-Driven

<p>Back on the 22 January, <a href="https://www.smartkarma.com/entities/zhuhai-holdings-investment-group-ltd" target="_blank" data-smartkarma-citation="entities:17863:1" rel="noopener">Zhuhai Holdings Investment (908 HK)</a> <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0122/2021012201252.pdf" target="_blank" rel="noopener">announced</a> a pre-conditional privatisation by way of a Scheme from Zhuhai SASAC's Longway Services Group<strong>.</strong></p>
<p>The Offer price was HK$3.06/share, a 37.84% premium to last close, a 52.39% premium to the average closing price over the previous 30 trading days, and a lifetime high. The Offer price will not be increased. No dividend is expected to be declared during the Offer period. </p>
<div>
<p>Pre-conditions from NDRC, MoC, and SAFE were satisfied by the <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0322/2021032200507.pdf" target="_blank" rel="noopener">22 March</a>. </p>
</div>
<div>The <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0420/2021042001483.pdf" target="_blank" rel="noopener">Scheme Document</a> is now out, with the Court Meeting/SGM will be held on the 18 May. The IFA says fair &amp; reasonable.</div>
<div></div>
<div>
<p>As always, more below the fold. </p>
</div>

Back on the 22 January, Zhuhai Holdings Investment (908 HK) announced a pre-conditional privatisation by way of a Scheme from Zhuhai SASAC's Longway Services Group.
The Offer price was HK$3.06/share, a 37.84% premium to last close, a 52.39% premium to the average closing price over the previous 30 trading days, and a lifetime high. The Offer price will not be increased. No dividend is expected to be declared during the Offer period. 

Pre-conditions from NDRC, MoC, and SAFE were satisfied by the 22 March. 

The Scheme Document is now out, with the Court Meeting/SGM will be held on the 18 May. The IFA says fair &amp; reasonable.


As always, more below the fold. 


Zhuhai Holdings (908 HK): SGM On The 18 May

<p>On Friday after market close, <a href="https://www.smartkarma.com/entities/zhuhai-holdings-investment-group-ltd" target="_blank" data-smartkarma-citation="entities:17863:1" rel="noopener">Zhuhai Holdings Investment (908 HK)</a> announced a pre-conditional privatisation offer by ZJ Holdings, the controlling shareholder. The cash offer price of HK$3.06 per share is a decent 37.84% premium to the last trading price of HK$2.220 per share (15 January prior to the trading halt). </p><p>The key pre-condition is regulatory approval by three government agencies which should be forthcoming as the offeror is an SOE. The satisfaction of the pre-conditions is estimated to take around four months. </p><div class="content-highlight"><p>The key conditions precedent are the headcount test and the scheme approved by at least 75% disinterested shareholders (&lt;10% disinterested shareholders rejection). The offeror and concert parties represent 878.2 million shares or 61.50% of shares outstanding. Disinterested scheme shareholders represent 549.6 million shares or 38.50% of shares outstanding which implies the 10% blocking stake is 55.0 million shares or 3.85% of shares outstanding. We believe that the privatisation bid will succeed due to the attractive bid.  </p></div>

On Friday after market close, Zhuhai Holdings Investment (908 HK) announced a pre-conditional privatisation offer by ZJ Holdings, the controlling shareholder. The cash offer price of HK$3.06 per share is a decent 37.84% premium to the last trading price of HK$2.220 per share (15 January prior to the trading halt). The key pre-condition is regulatory approval by three government agencies which should be forthcoming as the offeror is an SOE. The satisfaction of the pre-conditions is estimated to take around four months. The key conditions precedent are the headcount test and the scheme approved by at least 75% disinterested shareholders (&lt;10% disinterested shareholders rejection). The offeror and concert parties represent 878.2 million shares or 61.50% of shares outstanding. Disinterested scheme shareholders represent 549.6 million shares or 38.50% of shares outstanding which implies the 10% blocking stake is 55.0 million shares or 3.85% of shares outstanding. We believe that the privatisation bid will succeed due to the attractive bid.  

Hong Kong

Zhuhai Holdings Investment Group Ltd, through its subsidiaries, manages a holiday resort, a theme park and an amusement park.  The Company also provides port facilities and ticketing services.

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Zhuhai Holdings Investment (908 HK)

Lifestyle International (1212 HK)’s Wide Spread Heading into the 21 November Vote

Ongoing weak Hong Kong retail sales and peers’ slightly de-rating should lower the vote risk. Headcount test not applicable. While light, we...

Arun George

Lifestyle (1212 HK): Timing Is Everything As Shareholders Go To Vote on 21 Nov

Expect Lifestyle to trade wide-ish to terms given the vote risk. But on balance, I think Yau has got the timing just right.

David Blennerhassett

Lifestyle International’s Court Meeting on 21 November

The offer is light but there is no headcount test. No shareholder holds a blocking stake. At the last close, the gross spread to the offer is 9.6%.

Arun George

Zhuhai Holdings (908 HK): SGM On The 18 May

A solid premium to last close and a life-time high. The revised NAV was to be expected. I don't see that uplift in the NAV as a basis for...

David Blennerhassett

Zhuhai Holdings Privatisation Offer

Zhuhai announced a pre-conditional privatisation offer of HK$3.06 cash per share from its controlling shareholder. We believe that the...

Arun George

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