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

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

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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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>On 30 June, the IFA opined that <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>’s mandatory conditional cash offer for <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> at HK$0.35 was fair and reasonable. </li>
<li>However, the independent directors' recommendation was not unanimous, with Mr Wang Liyan (Independent non-executive director) dissenting. The first closing date is 21 July. </li>
<li>While meeting the 50% minimum acceptance condition has been aided by the significant derating of peers over the last month, it remains challenging. </li>
</ul>


On 30 June, the IFA opined that China Modern Dairy (1117 HK)’s mandatory conditional cash offer for China Shengmu Organic Milk (1432 HK) at HK$0.35 was fair and reasonable. 
However, the independent directors' recommendation was not unanimous, with Mr Wang Liyan (Independent non-executive director) dissenting. The first closing date is 21 July. 
While meeting the 50% minimum acceptance condition has been aided by the significant derating of peers over the last month, it remains challenging. 


China Shengmu Organic Milk

China Shengmu (1432 HK): Touch and Go