Index Rebal Trades & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Equity Analyst with 10+ years experience in fundamental and event-driven research.

On Smartkarma, I mainly publish insights on index flow events. This includes predicting regular and intra-review index changes and formulating market-neutral trading strategies based on flow catalysts. I also cover special situations such as mergers & acquisitions, equity offerings, buybacks, and other corporate restructuring events.

Index Rebal Trades & Special Situations

Pine Care Group - Another MGO, Still Wrong Price Making One Wonder...

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

On 5th Feb 2020, Hong Kong-based elderly home care provider <a href="https://www.smartkarma.com/entities/pine-care-group-ltd" target="_blank" data-smartkarma-citation="entities:28845:1" rel="noopener">Pine Care Group Ltd (1989 HK)</a><a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2019/1220/2019122000939.pdf" target="_blank" rel="noopener">announced</a> its top shareholder Pine Active Care agreed to sell a stake of 52% at a share price of HKD1.647 to a consortium led by <a href="https://www.stangroup.com.hk/eng/chairman-bio" target="_blank" rel="noopener">Mr. Tang Yiu Sing, Chairman of Stan Group</a>.The transaction which valued the company at an enterprise value of HKD2.1bn was <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0211/2020021100798.pdf" target="_blank" rel="noopener">executed today</a> and an Unconditional Mandatory Offer was launched by the Acquirer at the same price for the remaining 32.46% of shares outside the Acquirer's post-deal stake of 52.55% and the 14.99% retained by former top shareholder Pine Active Care.The Offer Price is more than double the company's IPO price of HKD0.69 in Dec 2017. That, and the extremely high multiples paid for the Target, lead us to question the Acquirer's motivations which might possibly include a special interest in the property portfolio of the Target.

On 5th Feb 2020, Hong Kong-based elderly home care provider Pine Care Group Ltd (1989 HK)announced its top shareholder Pine Active Care agreed to sell a stake of 52% at a share price of HKD1.647 to a consortium led by Mr. Tang Yiu Sing, Chairman of Stan Group.The transaction which valued the company at an enterprise value of HKD2.1bn was executed today and an Unconditional Mandatory Offer was launched by the Acquirer at the same price for the remaining 32.46% of shares outside the Acquirer's post-deal stake of 52.55% and the 14.99% retained by former top shareholder Pine Active Care.The Offer Price is more than double the company's IPO price of HKD0.69 in Dec 2017. That, and the extremely high multiples paid for the Target, lead us to question the Acquirer's motivations which might possibly include a special interest in the property portfolio of the Target. 

Pine Care Group

Pine Care (1989 HK): Unconditional MGO