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

Quiddity Advisors

Event-Driven

On the 12th September, <a href="https://www.smartkarma.com/entities/7661" target="_blank" data-smartkarma-citation="entities:7661:1">Unisem (M) (UNI MK)</a>'s CEO controlling shareholders and CEO John Chia, together with <a href="https://www.smartkarma.com/entities/20708" target="_blank">Tianshui Huatian Technology Co, Ltd. (002185 CH)</a> (TSHT) (the Joint Offerors) announced a <a href="http://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=89524&amp;name=EA_GA_ATTACHMENTS" target="_blank">pre-conditional takeover</a> at RM3.30/share, an 11.1% premium to last close, in an RM1.82bn deal.
Three of the four pre-conditions have now been cleared, with just SAFE's outbound approval remaining. Given guidelines handed down last year which encourage transactions in industries such as high-tech businesses and advanced manufacturing enterprises, this approval should be straightforward.
A binding offer will be subject to a 50% acceptance condition. The Joint Offerors' interest - mainly Chia and his family - hold 24.28%.
A quirk of the collaboration agreement between the Joint Offerors is that TSHT’s holding into Unisem, assuming the Offer completes and the agreement remain in place, is maintained at a 10% gap above Chia &amp; family members. It is the intention of the Joint Offerors to maintain Unisem's listing and not exercise its right to compulsory acquisition.
Dividends declared and paid will be netted off the Offer price. The ex-date for the <a href="http://disclosure.bursamalaysia.com/FileAccess/viewHtml?e=2902163" target="_blank">RM0.02/share second interim dividend</a> is the 21 November.
There is still the risk a firm Offer is not tabled. However, the recent approvals from <a href="http://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=90786&amp;name=EA_GA_ATTACHMENTS" target="_blank">China’s Gansu Department of Commerce and from the NDRC</a> would indicate this Offer is on track to become binding. This also potentially suggests an earlier completion, well ahead of the long-stop date of mid-March under the pre-conditional offer.
The deal is trading at a gross spread of 5.8%, having gained 4% in the past two days. This looks a decent entry point here.

On the 12th September, Unisem (M) (UNI MK)'s CEO controlling shareholders and CEO John Chia, together with Tianshui Huatian Technology Co, Ltd. (002185 CH) (TSHT) (the Joint Offerors) announced a pre-conditional takeover at RM3.30/share, an 11.1% premium to last close, in an RM1.82bn deal.
Three of the four pre-conditions have now been cleared, with just SAFE's outbound approval remaining. Given guidelines handed down last year which encourage transactions in industries such as high-tech businesses and advanced manufacturing enterprises, this approval should be straightforward.
A binding offer will be subject to a 50% acceptance condition. The Joint Offerors' interest - mainly Chia and his family - hold 24.28%.
A quirk of the collaboration agreement between the Joint Offerors is that TSHT’s holding into Unisem, assuming the Offer completes and the agreement remain in place, is maintained at a 10% gap above Chia &amp; family members. It is the intention of the Joint Offerors to maintain Unisem's listing and not exercise its right to compulsory acquisition.
Dividends declared and paid will be netted off the Offer price. The ex-date for the RM0.02/share second interim dividend is the 21 November.
There is still the risk a firm Offer is not tabled. However, the recent approvals from China’s Gansu Department of Commerce and from the NDRC would indicate this Offer is on track to become binding. This also potentially suggests an earlier completion, well ahead of the long-stop date of mid-March under the pre-conditional offer.
The deal is trading at a gross spread of 5.8%, having gained 4% in the past two days. This looks a decent entry point here.

Tianshui Huatian Technology Co, Ltd. (002185 CH)

Unisem (M)

Mind The Gap as TSHT Closes In On Unisem