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

Weekly Deals Digest (10 May) - Kakaku, Atlantic Lithium, Atlas, European Lithium, Vault, Shengmu

Weekly Deals Digest (12 Jul) - Archion, Kakaku, Dentsu, Shengmu, Dida, Accent, Steadfast, Vault

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

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Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

China Shengmu Organic Milk / Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/china-modern-dairy-holdings" target="_blank" data-smartkarma-citation="entities:6785:1" rel="noopener">China Modern Dairy (1117 HK)</a> has received SAMR approval for its acquisition of a 1.28% stake in <a href="https://www.smartkarma.com/entities/china-shengmu-organic-milk" target="_blank" data-smartkarma-citation="entities:12714:1" rel="noopener">China Shengmu Organic Milk (1432 HK)</a>. Completion will occur by 22 May.</li>
<li>Completion will trigger a mandatory cash offer at HK$0.35, conditional on a 50% minimum acceptance condition, which remains an issue, particularly given the significant re-rating of peers. </li>
<li>Nevertheless, in the case of a deal break, the downside is low, as the peer-adjusted undisturbed price is HK$0.37, which is above the last close of HK$0.32.</li>
</ul>



China Modern Dairy (1117 HK) has received SAMR approval for its acquisition of a 1.28% stake in China Shengmu Organic Milk (1432 HK). Completion will occur by 22 May.
Completion will trigger a mandatory cash offer at HK$0.35, conditional on a 50% minimum acceptance condition, which remains an issue, particularly given the significant re-rating of peers. 
Nevertheless, in the case of a deal break, the downside is low, as the peer-adjusted undisturbed price is HK$0.37, which is above the last close of HK$0.32.


Beijing Dabeinong Technology Grp (002385 CH)

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