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

Infigen Energy Deal - Interesting Optionality

Quiddity Advisors

Event-Driven

Australian energy company <a href="https://www.smartkarma.com/entities/erm-power-ltd" target="_blank" data-smartkarma-citation="entities:15406:1" rel="noopener">Erm Power Ltd (EPW AU)</a> has entered into a Scheme Implementation Deed with Shell Energy Australia under which Shell proposes to acquire 100% of ERM at $2.465/share, a 43% premium to last close, in a US$400mn deal.
The cash price will be reduced by the FY19 ordinary dividend of $0.045/share per share (ex-date is the <a href="https://www.asx.com.au/asxpdf/20190822/pdf/447q9rrjh2n8m2.pdf" target="_blank" rel="noopener">13 September</a>); and any special dividend up to $0.085/share.
ERM directors unanimously recommend that shareholders vote in favour of the Scheme in the absence of a superior proposal and subject to the independent expert concluding in its independent expert’s report that the Scheme is in the best interests of shareholders.
Trevor St Baker, ERM's major shareholder and founder with ~27.39% of shares out, has confirmed he also intends to vote in favour of the Scheme.
Shell, which is presently a leading gas producer in Australia, views ERM as a core power and energy solutions platform to growing its integrated power business, and leveraging off its existing gas marketing and trading capabilities. 
ERM concurrently announced a bottom-line profit of A$123.1mn in FY19 (June Y/E) versus a statutory loss of $80.5mn in FY18; however, the underlying NPAT (excluding large-scale generation certificates) in FY19 was A$26mn, down 14% from A$30.2mn in FY18. Revenue was down 1% yoy. ERM forecasts sales growth of 4.5% to 18.5 terawatt-hours in FY20.
The Scheme Booklet is due early October, with an expected Scheme Meeting early November and a possible implementation date late November.
This appears a relatively straightforward Scheme and will trade tight to terms. There are also potential franking credits, for those investors who can take advantage, attached to the special dividend.

Australian energy company Erm Power Ltd (EPW AU) has entered into a Scheme Implementation Deed with Shell Energy Australia under which Shell proposes to acquire 100% of ERM at $2.465/share, a 43% premium to last close, in a US$400mn deal.
The cash price will be reduced by the FY19 ordinary dividend of $0.045/share per share (ex-date is the 13 September); and any special dividend up to $0.085/share.
ERM directors unanimously recommend that shareholders vote in favour of the Scheme in the absence of a superior proposal and subject to the independent expert concluding in its independent expert’s report that the Scheme is in the best interests of shareholders.
Trevor St Baker, ERM's major shareholder and founder with ~27.39% of shares out, has confirmed he also intends to vote in favour of the Scheme.
Shell, which is presently a leading gas producer in Australia, views ERM as a core power and energy solutions platform to growing its integrated power business, and leveraging off its existing gas marketing and trading capabilities. 
ERM concurrently announced a bottom-line profit of A$123.1mn in FY19 (June Y/E) versus a statutory loss of $80.5mn in FY18; however, the underlying NPAT (excluding large-scale generation certificates) in FY19 was A$26mn, down 14% from A$30.2mn in FY18. Revenue was down 1% yoy. ERM forecasts sales growth of 4.5% to 18.5 terawatt-hours in FY20.
The Scheme Booklet is due early October, with an expected Scheme Meeting early November and a possible implementation date late November.
This appears a relatively straightforward Scheme and will trade tight to terms. There are also potential franking credits, for those investors who can take advantage, attached to the special dividend. 

Erm Power Ltd

Shell's ERM Power Play