Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

HK Type 4 license through Ballingal Investment Advisors Ltd. ("BIA" or "BIAL")

BACKGROUND
I have 20+yrs experience in Asia doing alternative strategies (i.e. non-delta1 non long-only) in fixed income, equity derivatives, and activist/catalyst/event-driven and long-short equity strategies with most of that time spent managing money. 

4 years in fixed income macro, 8 years running internal hedge fund and 4yrs investment banking at Citi in Japan, 3 years running an Asia multi-strat portfolio at a hedge fund, 4+yrs as an independent special situations analyst.

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<p>Early Friday, listed regional (Singapore, Malaysia, Indonesia) private healthcare provider <a href="https://www.smartkarma.com/entities/health-management-intl-ltd" target="_blank" data-smartkarma-citation="entities:14714:1" rel="noopener">Health Management Intl (HMI SP)</a> asked for a trading halt and late in the evening the company <a href="https://links.sgx.com/FileOpen/Announcement_final.ashx?App=Announcement&amp;FileID=569282" target="_blank" rel="noopener">announced</a> an Implementation Agreement for a privatisation by way of Scheme of Arrangement whereby private equity fund EQT (EQT Mid Market Asia III GP B.V. is funding the SPV which is the Offeror) would acquire HMI for S$0.73/share in cash or one share of the Acquirer.</p>
<p>That price is a 25-30% premium to the 1, 3, 6, and 12 month VWAPs prior to announcement and a 14% premium to the last "undisturbed" trading day.</p>
<p>The "undisturbed" day was 16 June, which was the day before the company <a href="https://links.sgx.com/FileOpen/HMI%20-%20Holding%20Announcement%20-%2017%20June%202019.ashx?App=Announcement&amp;FileID=563686" target="_blank" rel="noopener">announced</a> that it was in discussions with a third party for a possible transaction. </p>
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/092/418/original/Screenshot%202019-07-08%20at%201.44.49%20PM.png?1562564748" class="editor-image img-responsive" data-smartkarma-image-id="92418"></figure>
<div style="text-align: left;" class="content-caption">source: excerpt from <a href="https://links.sgx.com/FileOpen/HMI%20-%20Holding%20Announcement%20-%2017%20June%202019.ashx?App=Announcement&amp;FileID=563686" target="_blank" rel="noopener">17 June announcement</a>
</div>
<p>In hindsight, it may have been odd that the shares did not move much. The obvious conclusion to some was that this was might be a change in control where the owners would sell at current price, offering no premium to minorities. </p>
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/092/492/original/Screenshot%202019-07-09%20at%203.43.48%20AM.png?1562615055" class="editor-image img-responsive" data-smartkarma-image-id="92492"></figure>
<div class="content-caption">chart source: tradingview.com</div>
<p>Instead it's effectively an MBO. </p>
<hr>
<p><em>Quiddity's new <a href="https://www.smartkarma.com/insights/quiddity-singapore-m-a-guide-2019" target="_blank" rel="noopener">Quiddity Singapore M&amp;A Guide 2019</a></em> <em>is now published with guidelines to the relevant rules, regulations, documentation, and pointers to the Singapore M&amp;A landscape. Look for other countries in the series <a href="https://www.smartkarma.com/search?q=Quiddity%20M%26A" target="_blank" rel="noopener">here</a>.</em></p>

Early Friday, listed regional (Singapore, Malaysia, Indonesia) private healthcare provider Health Management Intl (HMI SP) asked for a trading halt and late in the evening the company announced an Implementation Agreement for a privatisation by way of Scheme of Arrangement whereby private equity fund EQT (EQT Mid Market Asia III GP B.V. is funding the SPV which is the Offeror) would acquire HMI for S$0.73/share in cash or one share of the Acquirer.
That price is a 25-30% premium to the 1, 3, 6, and 12 month VWAPs prior to announcement and a 14% premium to the last "undisturbed" trading day.
The "undisturbed" day was 16 June, which was the day before the company announced that it was in discussions with a third party for a possible transaction. 

source: excerpt from 17 June announcement

In hindsight, it may have been odd that the shares did not move much. The obvious conclusion to some was that this was might be a change in control where the owners would sell at current price, offering no premium to minorities. 

chart source: tradingview.com
Instead it's effectively an MBO. 

Quiddity's new Quiddity Singapore M&amp;A Guide 2019 is now published with guidelines to the relevant rules, regulations, documentation, and pointers to the Singapore M&amp;A landscape. Look for other countries in the series here.

Health Management Int'l Privatisation - Easy Peasy