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

ESun: Vote Down The Sale Of Lai Fung Holdings

Quiddity Advisors

Event-Driven

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<p>On the 21 Feb of this year, a wholly-owned subsidiary of <a href="https://www.smartkarma.com/entities/lai-sun-development-co-ltd" target="_blank" data-smartkarma-citation="entities:5175:1" rel="noopener">Lai Sun Development (488 HK)</a> (LSD) <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0221/2020022100980.pdf" target="_blank" rel="noopener">announced</a> a conditional takeunder for <a href="https://www.smartkarma.com/entities/lai-fung-holdings-ltd" target="_blank" data-smartkarma-citation="entities:17239:1" rel="noopener">Lai Fung Holdings (1125 HK)</a> (LFH) at $8.99/share versus the last price of $9.73. A simple diagram of the Lai Sun Group is below:</p>
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<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/133/441/original/image?1589425722" class="editor-image img-responsive" data-smartkarma-image-id="133441"></figure>
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<p>The Offer was open for acceptances after the Composite Document was <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0423/2020042302204.pdf" target="_blank" rel="noopener">despatched</a> on 24 April.</p>
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<p>Various meetings for disinterested shareholders of <a href="https://www.smartkarma.com/entities/esun-holdings-ltd" target="_blank" data-smartkarma-citation="entities:17768:1" rel="noopener">eSun holdings (571 HK)</a>, LSD and LSG to approve the transaction were held yesterday. eSun's disinterested shareholder vote was key - if the disposal of its 50.99% stake in LFH was approved, the Offer would turn unconditional in all respects.  </p>
<p>The Offer price was at an 85% discount to the revalued NAV. The IFAs (to both eSun [Trinity] and LFH [Altus]), correctly followed the narrative and declared the terms of the Offer to NOT be fair or reasonable.</p>
<p>It was obvious what eSun's disinterested shareholders should do. But they didn't, and overwhelmingly <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0513/2020051300827.pdf" target="_blank" rel="noopener">approved</a> the sale.</p>
<p>So that's that. The first close of the Offer is the 22 May. Cheques will be despatched by the 2 June if unconditional on the first close. It may turn unconditional before that.</p>
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<p>More below the fold. </p>
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On the 21 Feb of this year, a wholly-owned subsidiary of Lai Sun Development (488 HK) (LSD) announced a conditional takeunder for Lai Fung Holdings (1125 HK) (LFH) at $8.99/share versus the last price of $9.73. A simple diagram of the Lai Sun Group is below:





The Offer was open for acceptances after the Composite Document was despatched on 24 April.


Various meetings for disinterested shareholders of eSun holdings (571 HK), LSD and LSG to approve the transaction were held yesterday. eSun's disinterested shareholder vote was key - if the disposal of its 50.99% stake in LFH was approved, the Offer would turn unconditional in all respects.  
The Offer price was at an 85% discount to the revalued NAV. The IFAs (to both eSun [Trinity] and LFH [Altus]), correctly followed the narrative and declared the terms of the Offer to NOT be fair or reasonable.
It was obvious what eSun's disinterested shareholders should do. But they didn't, and overwhelmingly approved the sale.
So that's that. The first close of the Offer is the 22 May. Cheques will be despatched by the 2 June if unconditional on the first close. It may turn unconditional before that.


More below the fold. 


eSun Holdings

ESun (571 HK): It Beggars Belief