IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

Arun has over 15 years’ experience covering the Technology sector. During this time, he has worked with technology start-ups and as an equity analyst in investment banks and independent research firms. He was formerly a Technology Analyst for Canaccord Genuity, Altium Securities, Espirito Santo Investment Bank, Noble Group and Clear Capital. He has a dual Master’s degree in Financial Engineering and Industrial and Operations Engineering from the University of Michigan. He obtained his Bachelor’s degree in Mechanical Engineering from the Indian Institute of Technology, Bombay. He is also a CFA charterholder.

IPOs and Catalysts/Events

Merger Arb Mondays (13 Jul) - Dida, Shengmu, Kakaku, Shinko Shoji, Steadfast, Vault, Accent, Cygnus

China Shengmu (1432 HK): SAMR Approval Finally Secured; Next Up, the 50% Min Acceptance Condition

China Shengmu (1432 HK): Possible Offer, Potentially Problematic 50% Min Acceptance Condition

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Event-Driven

China Shengmu Organic Milk / Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/china-shengmu-organic-milk-ltd" target="_blank" data-smartkarma-citation="entities:12714:1" rel="noopener">China Shengmu Organic Milk (1432 HK)</a>’s mandatory offer from <a href="https://www.smartkarma.com/entities/china-modern-dairy-holdings-ltd" target="_blank" data-smartkarma-citation="entities:6785:1" rel="noopener">China Modern Dairy (1117 HK)</a> is HK$0.35, subject to a 50% minimum acceptance condition. The first closing date is 21 July.</li>
<li>I previously opined that meeting the minimum would be challenging. However, based on CCASS data, including acceptances, CMD’s shareholding was 45.69% of outstanding shares as of 10 July.</li>
<li>The offer is on track to be declared unconditional by the first closing date. At the last close and the 30 July payment, the gross/annualised spread is 7.7%/294%.</li>
</ul>



China Shengmu Organic Milk (1432 HK)’s mandatory offer from China Modern Dairy (1117 HK) is HK$0.35, subject to a 50% minimum acceptance condition. The first closing date is 21 July.
I previously opined that meeting the minimum would be challenging. However, based on CCASS data, including acceptances, CMD’s shareholding was 45.69% of outstanding shares as of 10 July.
The offer is on track to be declared unconditional by the first closing date. At the last close and the 30 July payment, the gross/annualised spread is 7.7%/294%.


China Shengmu (1432 HK): Fast-Tracking Towards Being Declared Unconditional