Equity Analyst, Event-driven, Quiddity Advisors

Janaghan Jeyakumar, CFA

Equity Analyst with experience in fundamental and event-driven research in Frontier and Emerging markets. 

On Smartkarma, I mainly publish insights on special situations such as mergers & acquisitions, index rebalance events, equity offerings, buybacks, and other corporate restructuring events mainly in the Asia-Pacific and European equity markets.

Equity Analyst, Event-driven

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

Taiwan-listed printed circuit board (PCB) maker <a href="https://www.smartkarma.com/entities/zhen-ding-technology-holding-ltd" target="_blank" data-smartkarma-citation="entities:16830:1" rel="noopener">Zhen Ding Technology Holding (4958 TT)</a>  <a href="https://www.zdtco.com/en/news/news_202001.asp" target="_blank" rel="noopener">announced on March 10th</a> they would be acquiring smaller peer <a href="https://www.smartkarma.com/entities/boardtek-electronics-corp" target="_blank" data-smartkarma-citation="entities:2502:1" rel="noopener">Boardtek Electronics (5349 TT)</a> in a share-swap deal. The exchange ratio will be 1 Zhen Ding Share for 5 BoardTek Shares which translates to an implied market cap of TWD5.0bn for the Target going by cash-equivalent numbers based on pre-announcement closing prices. According to the Deal, Zhen Ding will issue 44.8mn new shares (~5% of total shares currently) to acquire all the shares of BoardTek. If the Deal completes, Boardtek will become a 100%-owned subsidiary of Zhen Ding and Boardtek will be delisted. Both stocks have plummeted following the recent market sell-off and at the time of writing, Boardtek is trading through terms. In this insight, we have a look at the fundamentals to evaluate the merits of the Deal.

Taiwan-listed printed circuit board (PCB) maker Zhen Ding Technology Holding (4958 TT)  announced on March 10th they would be acquiring smaller peer Boardtek Electronics (5349 TT) in a share-swap deal. The exchange ratio will be 1 Zhen Ding Share for 5 BoardTek Shares which translates to an implied market cap of TWD5.0bn for the Target going by cash-equivalent numbers based on pre-announcement closing prices. According to the Deal, Zhen Ding will issue 44.8mn new shares (~5% of total shares currently) to acquire all the shares of BoardTek. If the Deal completes, Boardtek will become a 100%-owned subsidiary of Zhen Ding and Boardtek will be delisted. Both stocks have plummeted following the recent market sell-off and at the time of writing, Boardtek is trading through terms. In this insight, we have a look at the fundamentals to evaluate the merits of the Deal. 

BoardTek: Taiwan Scrip Deal Trading Through Terms