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

ESR REIT 4.6% Perpetual - Appears Expensive

ESR-REIT/Sabana: Furphys And Fear-Mongering

ESR-REIT Placement: Acquisition and AEI Are DPU Accretive but Debt Payment Dilutes

ESR-REIT and VIVA IT Unitholders Approve Their Merger

Quiddity Advisors

Event-Driven

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Back on the 16 July, <a href="https://www.smartkarma.com/entities/esr-reit" target="_blank" data-smartkarma-citation="entities:10934:1" rel="noopener">ESR-REIT (EREIT SP)</a> (ESR-REIT) and <a href="https://www.smartkarma.com/entities/sabana-shariah-compliant-reit" target="_blank" data-smartkarma-citation="entities:911:1" rel="noopener">Sabana Shari’ah Compliant REIT (SSREIT SP)</a> (Sabana REIT) jointly <a href="https://links.sgx.com/FileOpen/PressRelease_ESR_REIT_and_SabanaREIT_Announce_ProposedMerger.ashx?App=Announcement&amp;FileID=623899" target="_blank" rel="noopener">announced</a> the proposed merger of the two companies. Should the Scheme become effective, each Sabana Unitholder will receive 94 Consideration Units (new units in ESR-REIT) for every 100 Sabana Units held. 
Quarz Capital Management, one of Sabana-REITs' top 5 unitholders (at the time), presciently <a href="https://www.smallcapasia.com/wp-content/uploads/2019/12/Quarz-Capital-Management-Open-Letter-Sabana-REIT-and-ESR-Cayman-Nov-2019-FINAL.pdf" target="_blank" rel="noopener">proposed</a> a merger by way of a Trust Scheme between ESR and Sabana REITs back in November 2019.
All good so far? Not quite.
On the same day ESR-REIT <a href="https://links.sgx.com/FileOpen/Proposed%20Merger%20-%20No%20Increase%20of%20Offer%20Price.ashx?App=Announcement&amp;FileID=626445" target="_blank" rel="noopener">announced</a> that it does not intend to increase the Scheme Consideration and accordingly, the exchange ratio of 0.940x is final - except in a competitive situation - Quarz (along with Crane capital, together holding 10% of units out, or 5% each) <a href="https://e67b5536-3500-4e76-a4b1-1e47f7092aa8.filesusr.com/ugd/517105_b64078d28c29451690e946b507e385fc.pdf" target="_blank" rel="noopener">issued</a> an open letter to Sabana that they intend to reject the proposal at the current terms.
The key issue - as singled out by <a href="https://www.smartkarma.com/profiles/sumeet-singh" target="_blank" data-smartkarma-citation="accounts:4" rel="noopener">Sumeet Singh</a> in <a href="https://skr.ma/5iBkP" target="_blank" rel="noopener">ESR-REIT/Sabana Merger - Buying Well Below Book</a> - is the discount to book value under the share swap ratio. There are additional grievances.
10% is not an insignificant Against vote.
That and other grievances raised by Crane/Quarz are addressed in this insight.
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This insight addresses the latest developments with respect to the merger. For a detailed overview or the proposed terms, properties held by each REIT etc, please refer to <a href="https://skr.ma/Z2kDg" target="_blank" rel="noopener">ESR-REIT/Sabana-REIT Merger</a>.
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Back on the 16 July, ESR-REIT (EREIT SP) (ESR-REIT) and Sabana Shari’ah Compliant REIT (SSREIT SP) (Sabana REIT) jointly announced the proposed merger of the two companies. Should the Scheme become effective, each Sabana Unitholder will receive 94 Consideration Units (new units in ESR-REIT) for every 100 Sabana Units held. 
Quarz Capital Management, one of Sabana-REITs' top 5 unitholders (at the time), presciently proposed a merger by way of a Trust Scheme between ESR and Sabana REITs back in November 2019.
All good so far? Not quite.
On the same day ESR-REIT announced that it does not intend to increase the Scheme Consideration and accordingly, the exchange ratio of 0.940x is final - except in a competitive situation - Quarz (along with Crane capital, together holding 10% of units out, or 5% each) issued an open letter to Sabana that they intend to reject the proposal at the current terms.
The key issue - as singled out by Sumeet Singh in ESR-REIT/Sabana Merger - Buying Well Below Book - is the discount to book value under the share swap ratio. There are additional grievances.
10% is not an insignificant Against vote.
That and other grievances raised by Crane/Quarz are addressed in this insight.

This insight addresses the latest developments with respect to the merger. For a detailed overview or the proposed terms, properties held by each REIT etc, please refer to ESR-REIT/Sabana-REIT Merger.





ESR-LOGOS REIT

ESR/Sabana: Better Off Selling Assets