In today’s briefing:
- Ant Group Takes Out Yip’s Controlling Stake In Bright Smart (1428 HK)
- Sinarmas Land (SML SP): Potential Outcomes as IFA Says NOT Fair but Reasonable
- Bright Smart (1428 HK): To Sell or Not to Sell?
Ant Group Takes Out Yip’s Controlling Stake In Bright Smart (1428 HK)
- When broker Bright Smart Securities (1428 HK) was suspended recently, one possibility was Chairman, Peter Yip Mow-lum, a 50.54% shareholder, cashing out. And that has now unfolded.
- Yip has entered into a SPA with fintech giant Ant Group, the operator of Alipay. The agreement has been struck at HK$3.28/share, a 17.6% premium to undisturbed.
- Should the SPA complete – the key condition is NDRC approval – an unconditional MGO is triggered, also at HK$3.28. The price is final.
Sinarmas Land (SML SP): Potential Outcomes as IFA Says NOT Fair but Reasonable
- Sinarmas Land (SML SP) IFA opined that the Widjaja family’s S$0.31 offer is NOT fair but reasonable, as it is below the valuation range of S$0.350 to S$0.361.
- The independent directors have recommended that shareholders accept. Due to a breach of the 10% free float requirement, the shares will be suspended at the close of the offer.
- There are four possible outcomes with a medium probability that Sinarmas will follow the Great Eastern Holdings (GE SP) and Boustead Projects (BOCJ SP) playbook.
Bright Smart (1428 HK): To Sell or Not to Sell?
- The offer price of HK$3.28 by Ant Financial is attractive – 2.9x P/B and 8.3x PER, both on 12-month forward basis. It is also appealing relative to peers.
- Bright Smart Securities (1428 HK)‘s massive outperformance against the HSI showed its strong marketing and execution capabilities. Ant Financial will bring many synergies to it.
- Risk-Averse investors may take this opportunity to cash out, but we are on the long-term bull camp and prefer to hold for further upside.
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