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

Quiddity Advisors

Event-Driven

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<div>Back on the <a href="http://citicenvirotech.listedcompany.com/newsroom/20141112_115551_U19_DV2UOHCSCKXJUSQI.1.pdf" target="_blank" rel="noopener">12 November 2014</a>, CITIC Environment and KKR China Water jointly announced a pre-conditional Offer for  United Envirotech Ltd (as <a href="https://www.smartkarma.com/entities/united-envirotech-ltd" target="_blank" data-smartkarma-citation="entities:36:1" rel="noopener">Citic Envirotech (CEL SP</a><a href="https://www.smartkarma.com/entities/united-envirotech-ltd" target="_blank" data-smartkarma-citation="entities:36:1" rel="noopener">)</a> was then known), at S$1.65/share, and discussed in <em><a href="https://skr.ma/E39H" target="_blank" rel="noopener">CITIC + KKR bid for United Envirotech</a></em>.  </div>
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<div>The pre-conditions included approval from the PRC Ministry of Finance, NDRC, SAFE, and Ministry of Commerce, amongst others. </div>
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<div>Those pre-conditions were fulfilled on the <a href="http://citicenvirotech.listedcompany.com/newsroom/20150305_114445_U19_D3L3KI1GC1YTQ5RM.1.pdf" target="_blank" rel="noopener">5 March 2015</a>, the Offer was declared unconditional in all respects on the <a href="http://citicenvirotech.listedcompany.com/newsroom/20150326_201118_U19_LVJK32TNVMC2J880.1.pdf" target="_blank" rel="noopener">26 March</a>, the circular was dispatched on the <a href="http://citicenvirotech.listedcompany.com/newsroom/20150402_135736_U19_AWKV7339U6DBADPO.2.pdf" target="_blank" rel="noopener">2 April</a> and the Offer closed on the <a href="http://citicenvirotech.listedcompany.com/newsroom/20150416_205422_U19_05C7MMWXRDO2S3MB.1.pdf" target="_blank" rel="noopener">16 April</a> with the Offerors holding 85.80% of shares out.</div>
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<div>United Envirotech Ltd's name was changed to CITIC Envirotech on the <a href="http://citicenvirotech.listedcompany.com/newsroom/UEL.Change_of_Name.pdf" target="_blank" rel="noopener">30 July 2015</a>. </div>
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<div>On the <a href="http://citicenvirotech.listedcompany.com/newsroom/20161117_180703_NULL_IL402N1V8PXPTVU9.1.pdf" target="_blank" rel="noopener">16 November 2016</a>, CRF Envirotech/China Reform Puissance Overseas acquired KKR China Water's 23.89% stake or 269mn shares.</div>
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<div>A two-for-one share split was announced on the <a href="http://citicenvirotech.listedcompany.com/newsroom/20161128_172755_NULL_MDJHRJXNZOH5NQTZ.1.pdf" target="_blank" rel="noopener">28 November 2016</a>, increasing the number of shares out to 2.256bn. Movements in the shareholder register have been largely static since.</div>
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<div><strong>The New News</strong></div>
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<div>Yesterday, CITIC Group announced a pre-conditional <a href="https://links.sgx.com/FileOpen/CEL.Announcement.6.11.2019.ashx?App=Announcement&amp;FileID=584599" target="_blank" rel="noopener">Exit Offer at S$0.55/share</a>, a 48.6% premium to last close and a 61.9% premium to the one-month VWAP.</div>
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<div>Those pre-conditions include approvals from NDRC, SAFE and Ministry of Commerce. The Offeror is CITIC - these approvals are a foregone conclusion. The same approvals were sought and received in the 2014/2015 Offer.</div>
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<div>The making of the Exit Offer is conditional on receiving these pre-approvals within four calendar months, an approximately similar time frame required for the 2014/2015 Offer. The timeframe should be significantly shorter. CEL has guided pre-approvals by the week of 23 December and a possible close of the Exit Offer by mid-Jan.</div>
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<div>The Exit Offer is conditional on approved by a majority of at least 75% of CEL's shares out. CITIC and concert parties (namely CRF Envirotech) holding 79.1% in CEL must abstain from voting on the Delisting Resolution.</div>


Back on the 12 November 2014, CITIC Environment and KKR China Water jointly announced a pre-conditional Offer for  United Envirotech Ltd (as Citic Envirotech (CEL SP) was then known), at S$1.65/share, and discussed in CITIC + KKR bid for United Envirotech.  


The pre-conditions included approval from the PRC Ministry of Finance, NDRC, SAFE, and Ministry of Commerce, amongst others. 

Those pre-conditions were fulfilled on the 5 March 2015, the Offer was declared unconditional in all respects on the 26 March, the circular was dispatched on the 2 April and the Offer closed on the 16 April with the Offerors holding 85.80% of shares out.

United Envirotech Ltd's name was changed to CITIC Envirotech on the 30 July 2015. 

On the 16 November 2016, CRF Envirotech/China Reform Puissance Overseas acquired KKR China Water's 23.89% stake or 269mn shares.

A two-for-one share split was announced on the 28 November 2016, increasing the number of shares out to 2.256bn. Movements in the shareholder register have been largely static since.

The New News

Yesterday, CITIC Group announced a pre-conditional Exit Offer at S$0.55/share, a 48.6% premium to last close and a 61.9% premium to the one-month VWAP.

Those pre-conditions include approvals from NDRC, SAFE and Ministry of Commerce. The Offeror is CITIC - these approvals are a foregone conclusion. The same approvals were sought and received in the 2014/2015 Offer.

The making of the Exit Offer is conditional on receiving these pre-approvals within four calendar months, an approximately similar time frame required for the 2014/2015 Offer. The timeframe should be significantly shorter. CEL has guided pre-approvals by the week of 23 December and a possible close of the Exit Offer by mid-Jan.

The Exit Offer is conditional on approved by a majority of at least 75% of CEL's shares out. CITIC and concert parties (namely CRF Envirotech) holding 79.1% in CEL must abstain from voting on the Delisting Resolution.

Citic Envirotech

CITIC Envirotech's Privatisation Offer