In today’s briefing:
- CPMC Holdings (906 HK): Pre-Conditional Voluntary Offer at HK$6.87
- Boss Energy Placement – Heavy Dilution and Doesn’t Appear Well Flagged
- TPL: The Land of Speculative Worry
- CPMC (906 HK): SASAC Takeover
- Empire Energy Group Ltd – A Gas Plant with Intrinsic Growth Opportunity
CPMC Holdings (906 HK): Pre-Conditional Voluntary Offer at HK$6.87
- CPMC Holdings (906 HK) has announced a pre-conditional voluntary offer from Changping Industrial at HK$6.87 per share, a 32.1% premium to the undisturbed price (16 August).
- The pre-condition mainly relates to Chinese approvals. The offer is conditional on the offeror and concert parties representing more than 50% of voting rights.
- The 50% minimum acceptance condition should be met due to COFCO’s irrevocable and the second-largest shareholders’ past dealings with COFCO. At the last close, the gross spread was 6.0%.
Boss Energy Placement – Heavy Dilution and Doesn’t Appear Well Flagged
- Boss Energy (BOE AU) is looking to raise up to A$205m (US$135m) through its primary placement. The proceeds will be used to fund an acquisition and replenish working capital.
- The deal will be a large one to digest, at 19.7 days of three month ADV and 14% dilution.
- In this note, we will talk about the placement and run the deal through our ECM framework.
TPL: The Land of Speculative Worry
- TPL has gone through a series of changes within its Board of Directors but that has not been enough to squash investor concerns
- The Delaware Court deciding in favor of TPL in a shareholder lawsuit would allow the Board to increase the number of authorized shares of common stock
- TPL’s Board now has ten members instead of nine last year. The Board has also seen three members turnover giving the Board a total of four fresh members
CPMC (906 HK): SASAC Takeover
- Packaging play CPMC Holdings (906 HK) has announced a pre-conditional Offer from SASAC and the National Council for Social Security Fund of China.
- The joint offerors have offered $6.87/share, an okay 32.1% premium to last close. Pre-cons involve the standard PRC regulators. The Offer itself is contingent on a 50% acceptance hurdle.
- China Foods (506 HK) has given an irrevocable for its 29.7% stake. This will turn unconditional. The timing of the Offer is interesting as a VP is under graft investigation.
Empire Energy Group Ltd – A Gas Plant with Intrinsic Growth Opportunity
- Empire Energy Group Limited (ASX:EEG) is an oil and gas producer/developer, with onshore Northern Territory (NT) and US oil/gas production assets.
- EEG has the largest tenement position in the highly prospective Greater McArthur Basin, which includes the Beetaloo Sub-basin.
- The investment case is building further with the acquisition of the Rosalind Park Gas Plant to provide an immediate, low-capital and operating-cost processing option with nameplate capacity above the Carpentaria Stage I development model.
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