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

Changyou: Sohu's Definitive Plan Of Merger

FLASHNOTE JA Solar - Cheeky Buyout Attempt by the Management

Quiddity Advisors

Event-Driven

On 22-May-17, Charles Zhang, the founder and CEO of <a href="https://www.smartkarma.com/entities/sohu-com-ltd" target="_blank" data-smartkarma-citation="entities:22853:1" rel="noopener">Sohu.com Inc (SOHU US)</a>, <a href="https://www.sec.gov/Archives/edgar/data/1458696/000119312517177847/d389949dex991.htm" target="_blank" rel="noopener">submitted</a> a preliminary, non-binding proposal to acquire all the Class A and Class B shares of <a href="https://www.smartkarma.com/entities/changyou-com-ltd-ads" target="_blank" data-smartkarma-citation="entities:19287:1" rel="noopener">Changyou.Com Ltd (Ads) (CYOU US)</a> at US$21.05/share in cash (per Class A or Class B share) or US$42.10 in cash per ADS. The formation of an Independent Special Committee and the appointment of financial advisors shortly followed. Then crickets. Until Zhang <a href="http://ir.changyou.com/02_01_2018.shtml" target="_blank" rel="noopener">reaffirmed</a> his proposal in February last year.
Then even more crickets.
In the interim, CYOU declared two special dividends of US$9.40/ADS in April of this year and last. 
Sohu has now <a href="http://ir.changyou.com/09_09_2019.shtml" target="_blank" rel="noopener">tabled an Offer</a> to buy out the minority shareholders in CYOU for US$5/share, or US$10/ADS in cash, or a 69% premium to last close. This Offer is preliminary and non-binding.
It was concurrently announced Zhang was no longer pursuing his non-binding proposal. 
Sohu holds 67.4% of shares out in CYOU via its A and B shares and 95.3% of the voting rights given the disproportionate voting power of the B shares.
Assuming a formal Offer is forthcoming - a potential big IF given the protracted timeframe under Zhang's earlier proposal - this appears a done deal.  As Sohu holds &gt;90% of the votes, the Offer is expected to be in the form of a short-form statutory merger under Cayman Law. This means approval from CYOU 's shareholders is not required.

On 22-May-17, Charles Zhang, the founder and CEO of Sohu.com Inc (SOHU US), submitted a preliminary, non-binding proposal to acquire all the Class A and Class B shares of Changyou.Com Ltd (Ads) (CYOU US) at US$21.05/share in cash (per Class A or Class B share) or US$42.10 in cash per ADS. The formation of an Independent Special Committee and the appointment of financial advisors shortly followed. Then crickets. Until Zhang reaffirmed his proposal in February last year.
Then even more crickets.
In the interim, CYOU declared two special dividends of US$9.40/ADS in April of this year and last. 
Sohu has now tabled an Offer to buy out the minority shareholders in CYOU for US$5/share, or US$10/ADS in cash, or a 69% premium to last close. This Offer is preliminary and non-binding.
It was concurrently announced Zhang was no longer pursuing his non-binding proposal. 
Sohu holds 67.4% of shares out in CYOU via its A and B shares and 95.3% of the voting rights given the disproportionate voting power of the B shares.
Assuming a formal Offer is forthcoming - a potential big IF given the protracted timeframe under Zhang's earlier proposal - this appears a done deal.  As Sohu holds &gt;90% of the votes, the Offer is expected to be in the form of a short-form statutory merger under Cayman Law. This means approval from CYOU 's shareholders is not required. 

Cashed-Up Sohu To Freeze Out Changyou's Minorities

Changyou.com

Cashed-Up Sohu To Freeze Out Changyou's Minorities