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

Going With The Grain As COFCO Bids For China Agri

Quiddity Advisors

Event-Driven

China Agri Industries Hldgs / Event-Driven

<div>
<p>On the 28 November, state-owned COFCO, and major shareholder, <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2019/1128/2019112800135.pdf" target="_blank" rel="noopener">proposed</a> the privatisation of grain processor and trader <a href="https://www.smartkarma.com/entities/china-agri-industries-hldgs" target="_blank" data-smartkarma-citation="entities:11088:1" rel="noopener">China Agri Industries Hldgs (606 HK)</a> at $4.25/share, a 34.07% premium to last close, by way of a Scheme. The price was final. </p>
</div>
<div>
<p>With COFCO, together with concert parties, holding 60.75% of shares out, the blocking vote at the Scheme Meeting was 3.925%. No single shareholder has such a blocking stake. The headcount test does not apply as China Agri is Hong Kong-incorporated.</p>
</div>
<div>
<p>The Scheme Document is now <a href="http://img.chinaagri.com/Uploads/Zlyz/File/2020/02/13/u5e45656213fae.pdf" target="_blank" rel="noopener">out</a>. The Court Meeting is scheduled to take place on the 6 March. The IFA considers the Offer to be fair and reasonable. Optically, this opinion was a given.</p>
</div>
<div>
<p>This is a pretty clean Scheme. I previously estimated payment the second week of March - however, the indicative payment will now occur on or before the 30 March, after the dispatch of the Scheme Document was <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2019/1218/2019121800763.pdf" target="_blank" rel="noopener">delayed</a> until the 14 February from the 18 December. </p>
<p>A further interim dividend of HK$0.04, declared on the <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0204/2020020401847.pdf" target="_blank" rel="noopener">4 February</a>, will also be added to the Offer Price, after the Offeror "<em>consented to the declaration and payment</em>". The record date for this dividend is the 17 March, the same day as the Scheme Record date. The payment is expected on the 17 April.</p>
<p>Trading at a gross spread of 1.6%, including the dividend, with payment in around 6 weeks, for those investors seeking a quick return.</p>
<p></p>
</div>


On the 28 November, state-owned COFCO, and major shareholder, proposed the privatisation of grain processor and trader China Agri Industries Hldgs (606 HK) at $4.25/share, a 34.07% premium to last close, by way of a Scheme. The price was final. 


With COFCO, together with concert parties, holding 60.75% of shares out, the blocking vote at the Scheme Meeting was 3.925%. No single shareholder has such a blocking stake. The headcount test does not apply as China Agri is Hong Kong-incorporated.


The Scheme Document is now out. The Court Meeting is scheduled to take place on the 6 March. The IFA considers the Offer to be fair and reasonable. Optically, this opinion was a given.


This is a pretty clean Scheme. I previously estimated payment the second week of March - however, the indicative payment will now occur on or before the 30 March, after the dispatch of the Scheme Document was delayed until the 14 February from the 18 December. 
A further interim dividend of HK$0.04, declared on the 4 February, will also be added to the Offer Price, after the Offeror "consented to the declaration and payment". The record date for this dividend is the 17 March, the same day as the Scheme Record date. The payment is expected on the 17 April.
Trading at a gross spread of 1.6%, including the dividend, with payment in around 6 weeks, for those investors seeking a quick return.



China Agri Industries Hldgs

China Agri: Done Deal As IFA Signs Off