In today’s briefing:
- Mayne Pharma (MYX AU): FY25 Results Aid Both Sides
- Simcere Pharma Placement – First Primary Raising, past Deals Have Been Mixed
- Current Merger Arbitrage Opportunities and Strategic Reviews in Global Markets: Key Active Cases
- A/H Premium Tracker (To 29 Aug 2025): AH Premia Expand Again, Beautiful Skew Takes a Breather
- Merger Arbitrage Opportunities and Strategic Updates: AHX, PLYM, LWAY, YORKU, NZM, PAC and More
- Apiam Animal Health Receives A$0.88/Share Takeover Offer from Adamantem Capital
- Business Breakdown: Akums Drugs – Market Leader with Global Ambitions
- Kangji Medical (9997 HK) Privatization Update – About the 25H1 Results and the Privatization Outlook
- iFAST Chief Lim Chung Chun Ups Shareholding
- Hygeia Healthcare (6078 HK): Prolonged Winter? Or Is There Light Visible At the End of the Tunnel?
Mayne Pharma (MYX AU): FY25 Results Aid Both Sides
- On 29 August, Mayne Pharma (MYX AU) reported its FY25 results with underlying EBITDA of A$47 million, which is at the lower end of its guidance range.
- At first glance, FY25 results are positive for Mayne as they suggest that the weak 3Q was an aberration and its performance is on an upward trajectory.
- However, my analysis suggests that the results provide Cosette with several angles to pursue to bolster its case of a MAC breach. This remains a high-risk/high-reward set-up.
Simcere Pharma Placement – First Primary Raising, past Deals Have Been Mixed
- Simcere Pharmaceutical Group (2096 HK) is looking to raise around US$200m via a top-up placement.
- This is the first primary raising by the company since its listing. There have been a few secondary deals, with mixed results.
- In this note, we talk about the deal dynamics and run the deal through our ECM framework.
Current Merger Arbitrage Opportunities and Strategic Reviews in Global Markets: Key Active Cases
- Apiam Animal Health received a takeover offer at A$0.88/share with an 11% spread, supported by founder Dr. Chris Richards.
- Plymouth Industrial REIT has a $24.10/share bid from Sixth Street Capital, with a 14-15% spread and board review ongoing.
- DallasNews has two takeover offers: $15/share from Hearst and $18.5/share from Alden, requiring two-thirds shareholder approval.
A/H Premium Tracker (To 29 Aug 2025): AH Premia Expand Again, Beautiful Skew Takes a Breather
- HUGE, rampaging, “Beautiful Skew”… is flat. Big swings in H/A ratios continue, this time on average with 2.1% H underperformance vs As which is -4.4% on average over two weeks.
- Last week’s short reco on Fuyao Glass Industry Group (3606 HK) was up 2.3% on the week in Hs but Hs underperformed the As by 1.86%.
- AH premia are in a widening phase. This may continue. New reco this week.
Merger Arbitrage Opportunities and Strategic Updates: AHX, PLYM, LWAY, YORKU, NZM, PAC and More
- Apiam Animal Health received a takeover offer from Adamantem Capital at A$0.88/share, with a current spread of 11%.
- YORK announced a merger with CRO token issuance, with each YORK share representing approximately 47 CRO tokens.
- Pacific Current Group’s FY25 results show a 28% discount to NAV, with potential capital allocation concerns.
Apiam Animal Health Receives A$0.88/Share Takeover Offer from Adamantem Capital
- Apiam Animal Health received a takeover offer from Adamantem Capital at A$0.88/share, representing a 60% premium.
- Adamantem has 30 days of exclusivity for due diligence, with support from AHX’s largest shareholder and founder.
- AHX’s enterprise value is A$220m, aligning with Adamantem’s typical transaction size and strategic acquisition interests.
Business Breakdown: Akums Drugs – Market Leader with Global Ambitions
- Akums secured a €200m European supply contract, marking its first large entry into regulated markets and validating its compliance and scale capabilities.
- This shifts Akums from a domestic CDMO leader to a credible global player, with exports positioned to become a material earnings contributor from FY27.
- While near-term growth remains muted, Akums’ medium-term profile looks stronger, with greater diversification and reduced dependence on India’s CDMO cycle.
Kangji Medical (9997 HK) Privatization Update – About the 25H1 Results and the Privatization Outlook
- The steady growth in revenue/overseas revenue proportion/gross profit indicated that Kangji’s core business was still in good shape in 25H1. Losses of Weijing increased because commercialization is in initial stage.
- The declining net profit in 25H1 may encourage some investors to support the privatization, but there are still some investors planning to oppose this privatization based on the sample screenshots.
- Risk-Takers can bet on the success of privatization to obtain arbitrage returns.But deal break also offers an excellent opportunity to buy at a low price(similar to the playbook on Henlius).
iFAST Chief Lim Chung Chun Ups Shareholding
- Institutions were net buyers of Singapore stocks with a S$33 million inflow, reversing a prior S$53 million outflow.
- United Overseas Bank led share buybacks with S$54.7 million total consideration, purchasing 500,000 shares at S$35.30 each.
- iFAST Corporation’s 1HFY25 profit before tax rose 32.7% to S$50.4 million, driven by iGB’s profitability.
Hygeia Healthcare (6078 HK): Prolonged Winter? Or Is There Light Visible At the End of the Tunnel?
- In 1H25, Hygeia Healthcare Group (6078 HK) reported revenue decline of 16% YoY to RMB 1,990 million mainly dragged by 18% YoY decrease in inpatient revenues.
- Hygeia’s gross profit margin contracted 520bps YoY to 26.6%. Net profit decreased 36% on higher finance cost despite of income tax expenses being lower.
- Incremental growth advantage from inorganic expansion slowly wanes out for Hygeia. Competitive pressure limits room for incremental price realization.
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