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

Li & Fung: Nervous Action Ahead of Scheme Vote

Quiddity Advisors

Event-Driven

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<p>On the 20 March, <a href="https://www.smartkarma.com/entities/li-fung-ltd" target="_blank" data-smartkarma-citation="entities:6290:1" rel="noopener">Li &amp; Fung Ltd (494 HK)</a> <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0320/2020032000519.pdf" target="_blank" rel="noopener">announced</a> a privatisation Offer from Golden Lincoln (a vehicle owned by the Fung family and Singapore's <a href="https://www.smartkarma.com/entities/global-logistic-properties-ltd" target="_blank" data-smartkarma-citation="entities:2894:1" rel="noopener">Global Logistic Properties (GLP SP)</a>), by way of a Scheme, at a Scheme Offer Price of HK$1.25, a 150% premium to last close. The Offer Price is final. No final FY19 dividend was declared.</p>
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<p>Disinterested Shareholders comprise 5.701bn shares, or 66.77% of shares out. Therefore the blocking stake at the Scheme Meeting is 570.1mn shares or 6.677% of shares out. The 10% blocking stake is attached to ALL of the Scheme Shares held by the Disinterested Shareholders. </p>
<p>Silchester, with 10.9% of shares out, has the ability to torpedo the deal. </p>
<p>This is the key risk to the transaction. But I'm amending my prior conviction.</p>
<p>If concluding Li &amp; Fung is structurally, and permanently impaired, or facing ephemeral challenges (I would choose the former), this Offer Price is looking attractive.</p>
<p>As always, more below the fold.</p>
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<p></p>
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On the 20 March, Li &amp; Fung Ltd (494 HK) announced a privatisation Offer from Golden Lincoln (a vehicle owned by the Fung family and Singapore's Global Logistic Properties (GLP SP)), by way of a Scheme, at a Scheme Offer Price of HK$1.25, a 150% premium to last close. The Offer Price is final. No final FY19 dividend was declared.


Disinterested Shareholders comprise 5.701bn shares, or 66.77% of shares out. Therefore the blocking stake at the Scheme Meeting is 570.1mn shares or 6.677% of shares out. The 10% blocking stake is attached to ALL of the Scheme Shares held by the Disinterested Shareholders. 
Silchester, with 10.9% of shares out, has the ability to torpedo the deal. 
This is the key risk to the transaction. But I'm amending my prior conviction.
If concluding Li &amp; Fung is structurally, and permanently impaired, or facing ephemeral challenges (I would choose the former), this Offer Price is looking attractive.
As always, more below the fold.





Li & Fung Ltd

Li & Fung: Another Think About The Offer