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

Leyou Tech (1089 HK): Offer Doc Despatched

Leyou (1089): Tencent Is Game As Scheme Tabled

Leyou – We Expect a Deal Soon and at the Top End of Reported Terms or Possibly Higher

Leyou – You Need to Be Tracking Warframe This Month if You Own This

Quiddity Advisors

Event-Driven

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<p>Last night, <a href="https://www.smartkarma.com/entities/leyou-technologies-holdings" target="_blank" data-smartkarma-citation="entities:5831:1" rel="noopener">Leyou Technologies (1089 HK)</a> <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0827/2020082701826.pdf" target="_blank" rel="noopener">announced</a> a Scheme from <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent Holdings (700 HK)</a> at $3.3219/share.</p>
<p>Despite the low premium (4.46% to last close, and 30.27% over the closing price of HK$2.55/share on 19 September 2019, which was the last trading day prior to Leyou's <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0525/2020052501310.pdf" target="_blank" rel="noopener">announced</a> it was in preliminary discussions with various independent potential investors), irrevocables (in favour of the Scheme) total 69.21% of shares out, and the Scheme is conditional on 75% of shares out voting in favour of the Scheme.  This is a done deal.</p>
<p>However, concerns have been raised to other conditions such as obtaining authorisations from the relevant governmental authorities in Canada, the United States of America, Germany, Austria and any other relevant jurisdiction.</p>
<p>The national security review in Canada under the Investment Canada Act (Canada) has specifically been singled out.</p>
<p>This insight tackles the issues as to whether there are risks to the deal completing based on those required approvals . [Spoiler - I don't see them as major issues.]</p>
<p>More below the fold.</p>
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Last night, Leyou Technologies (1089 HK) announced a Scheme from Tencent Holdings (700 HK) at $3.3219/share.
Despite the low premium (4.46% to last close, and 30.27% over the closing price of HK$2.55/share on 19 September 2019, which was the last trading day prior to Leyou's announced it was in preliminary discussions with various independent potential investors), irrevocables (in favour of the Scheme) total 69.21% of shares out, and the Scheme is conditional on 75% of shares out voting in favour of the Scheme.  This is a done deal.
However, concerns have been raised to other conditions such as obtaining authorisations from the relevant governmental authorities in Canada, the United States of America, Germany, Austria and any other relevant jurisdiction.
The national security review in Canada under the Investment Canada Act (Canada) has specifically been singled out.
This insight tackles the issues as to whether there are risks to the deal completing based on those required approvals . [Spoiler - I don't see them as major issues.]
More below the fold.






Leyou (1089 HK): Reg Approvals Not An Issue. Unless Politicised