Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

HK Type 4 license through Ballingal Investment Advisors Ltd. 

I'm a highly experienced sell-side analyst with in excess of 22 years of covering Asia Pacific equities, the past 19 years immersed in event strategies encompassing M&A risk arbitrage, directional long/short, stub trades and restructuring.  

My background also includes accountancy (liquidation/bankruptcy/receivership) earlier in my career and as a chief financial officer of a global commodity company based in the US and Mexico.

Pan-Asia Catalysts/Events

Discover Singapore: BreadTalk (BREAD SP EQUITY)

Thai-Coons Ep. 8: Thaksin...Business Genius or Political Provacateur?

Quiddity Advisors

Event-Driven

Yesterday, <a href="https://www.smartkarma.com/entities/breadtalk-group-ltd" target="_blank" data-smartkarma-citation="entities:15888:1" rel="noopener">Breadtalk (BREAD SP)</a> disclosed a <a href="https://links.sgx.com/FileOpen/BTG_4Q2019_Results.ashx?App=Announcement&amp;FileID=597562" target="_blank" rel="noopener">net loss of S$5.2mn</a> in FY19 compared to a profit of S$15.2mn in FY18mn a year ago.  The loss was primarily attributed to a "S$6.1mn in one-off fixed assets impairment due to pre-mature outlet closures, inventory obsolescence, franchise income doubtful debt provisions; widening of operating losses at the China and Hong Kong Bakery (due to social unrest) and Indonesia ToastBox businesses; the full-year consolidation of the Thailand Bakery business post-acquisition from Minor Food Group, which remains loss-making; and profitability decline in the Singapore Bakery business". 
Breadtalk concurrently <a href="https://links.sgx.com/FileOpen/BTG%20-%20Financial%20Covenants%20MTN.ashx?App=Announcement&amp;FileID=597564" target="_blank" rel="noopener">announced</a> a technical breach in the financial covenants in its S$100mn fixed-rate notes, wherein the NTA did not pass the necessary threshold, and consolidated net cash to NTA also did not pass, if including SFRS(I) 16. Breadtalk added this is not indicative of a cashflow issue, and that it is evaluating options in regard to the breach.
This morning, BTG Holding Company <a href="https://links.sgx.com/FileOpen/Offer_Announcement.ashx?App=Announcement&amp;FileID=597568" target="_blank" rel="noopener">made</a> a voluntary conditional cash offer of S$0.77/share for Breadtalk, which is a 19.4% and 30.1% premium to last close and 30-day VWAP.
BTG Holdings is an SPV owned by George Quek (Breadtalk's founder and chairman), his wife Katherine Lee (deputy chairman and executive director), and Thai-listed hospitality and leisure company <a href="https://www.smartkarma.com/entities/minor-international-pcl" target="_blank" data-smartkarma-citation="entities:2154:1" rel="noopener">Minor International (MINT TB)</a>.
The Offer is conditional on a 90% acceptance condition. Shareholders (comprising Quek, Lee and Minor's stakes) holding 397.1mn or 70.53% of shares out - have given an irrevocable to tender into the Offer.
Save for this acceptance condition, the Offer is unconditional in all other respects. The Offeror reserves the right to reduce the acceptance condition threshold to 50%.
As always, more below the fold.

Yesterday, Breadtalk (BREAD SP) disclosed a net loss of S$5.2mn in FY19 compared to a profit of S$15.2mn in FY18mn a year ago.  The loss was primarily attributed to a "S$6.1mn in one-off fixed assets impairment due to pre-mature outlet closures, inventory obsolescence, franchise income doubtful debt provisions; widening of operating losses at the China and Hong Kong Bakery (due to social unrest) and Indonesia ToastBox businesses; the full-year consolidation of the Thailand Bakery business post-acquisition from Minor Food Group, which remains loss-making; and profitability decline in the Singapore Bakery business". 
Breadtalk concurrently announced a technical breach in the financial covenants in its S$100mn fixed-rate notes, wherein the NTA did not pass the necessary threshold, and consolidated net cash to NTA also did not pass, if including SFRS(I) 16. Breadtalk added this is not indicative of a cashflow issue, and that it is evaluating options in regard to the breach.
This morning, BTG Holding Company made a voluntary conditional cash offer of S$0.77/share for Breadtalk, which is a 19.4% and 30.1% premium to last close and 30-day VWAP.
BTG Holdings is an SPV owned by George Quek (Breadtalk's founder and chairman), his wife Katherine Lee (deputy chairman and executive director), and Thai-listed hospitality and leisure company Minor International (MINT TB).
The Offer is conditional on a 90% acceptance condition. Shareholders (comprising Quek, Lee and Minor's stakes) holding 397.1mn or 70.53% of shares out - have given an irrevocable to tender into the Offer.
Save for this acceptance condition, the Offer is unconditional in all other respects. The Offeror reserves the right to reduce the acceptance condition threshold to 50%.
As always, more below the fold.

BreadTalk

Breadtalk: Privatisation Opportunism