Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

HK Type 4 license through Ballingal Investment Advisors Ltd. ("BIA" or "BIAL")

BACKGROUND
I have 20+yrs experience in Asia doing alternative strategies (i.e. non-delta1 non long-only) in fixed income, equity derivatives, and activist/catalyst/event-driven and long-short equity strategies with most of that time spent managing money. 

4 years in fixed income macro, 8 years running internal hedge fund and 4yrs investment banking at Citi in Japan, 3 years running an Asia multi-strat portfolio at a hedge fund, 4+yrs as an independent special situations analyst.

Pan-Asia Catalysts/Events

Event-Driven Weekly - Week Ending 20 July 2018

Wheelock Properties – Holding Out for a Better Offer

StubWorld: PCCW Plumbs New Lows & Wheelock Props' Privatisation

Wheelock Properties - To Privatise or Not

Wheelock Properties – Deep Value to Be Unlocked but the Question Is…when?

Wheelock – Evaluating Wharf's Proposed IP In-Specie

Quiddity Advisors

Event-Driven

<p>Just over a year ago, <a href="https://www.smartkarma.com/profiles/840" target="_blank" data-smartkarma-citation="accounts:840">David Blennerhassett</a> asked the question <strong><a href="https://www.smartkarma.com/insights/wheelock-property-to-privatise-or-not" target="_blank" data-smartkarma-citation="insights:11295">Wheelock Properties - To Privatise or Not</a>?</strong> The company had been the subject of takeover rumors and suggestions for almost a decade.</p><p>In a <em>must-read</em> insight published just one month ago, Smartkarma analyst <a href="https://www.smartkarma.com/profiles/2053" target="_blank" data-smartkarma-citation="accounts:2053">Royston Foo</a> discussed the attraction of <a href="https://www.smartkarma.com/entities/3197" target="_blank" data-smartkarma-citation="entities:3197:1">Wheelock Properties (S) Ltd (WP SP)</a> as a takeover candidate in <a href="https://www.smartkarma.com/insights/wheelock-properties-deep-value-to-be-unlocked-but-the-question-is-when" target="_blank" data-smartkarma-citation="insights:21343">Wheelock Properties – Deep Value to Be Unlocked but the Question Is…when?</a> and recommended the stock as a buy. His proposed takeout price was S$2.17. </p><p>This morning we have the answer to David's question and a quick result on Royston's idea.</p><p>This morning, a wholly-owned subsidiary of <a href="https://www.smartkarma.com/entities/52" target="_blank" data-smartkarma-citation="entities:52:1">Wheelock &amp; Co Ltd (20 HK)</a><a href="http://infopub.sgx.com/FileOpen/Offer%20Announcement.ashx?App=Announcement&amp;FileID=516810" target="_blank">announced</a> a S$598mm Voluntary Unconditional General Offer for the 23.79% of <a href="https://www.smartkarma.com/entities/3197" target="_blank" data-smartkarma-citation="entities:3197:1">Wheelock Properties (S) Ltd (WP SP)</a> that it does not already own.</p><p>The Offer is at S$2.10/share and will be unconditional in all respects. Shareholders who accept the Offer will receive payment 7 business days from the receipt of their valid acceptances.</p><p>The Offer was made when the stock was trading at or near 18 month lows, and comes at a 20.7% premium to last traded price, a 29% premium to 1mo VWAP, 22.8% premium to 3mo VWAP, 13.3% premium to 12-mo VWAP and is the highest price since early 2010.</p><p>It comes at a multiple of 0.78x PNAV and 0.80x Adjusted PNAV and 0.70x ex-cash PNAV, all of which are only slightly above 10yr trading averages. That will disappoint some. </p><p>Wheelock &amp; Co intends to delist the Company and squeeze out minorities where possible. </p><table class="table table-striped"><tbody>
<tr><td colspan="2"><h2>The Expected Schedule</h2></td></tr>
<tr>
<td><strong>Date</strong></td>
<td><strong>Event</strong></td>
</tr>
<tr>
<td>19 July 2018</td>
<td>Announcement of Offer</td>
</tr>
<tr>
<td>10 August 2018</td>
<td>Last Day for Despatch of Offer Document</td>
</tr>
<tr>
<td>24 August 2018</td>
<td>Last Day for Despatch of Offeree Circular with IFA Opinion</td>
</tr>
<tr>
<td>7 September 2018</td>
<td>Earliest Closing Date</td>
</tr>
</tbody></table><p>The stock opens trading today above terms. I am not surprised. The offer is, on an ex-cash <em>and</em> ex-securities basis, at a bigger discount to adjusted NAV than should be expected. </p>

Just over a year ago, David Blennerhassett asked the question Wheelock Properties - To Privatise or Not? The company had been the subject of takeover rumors and suggestions for almost a decade.In a must-read insight published just one month ago, Smartkarma analyst Royston Foo discussed the attraction of Wheelock Properties (S) Ltd (WP SP) as a takeover candidate in Wheelock Properties – Deep Value to Be Unlocked but the Question Is…when? and recommended the stock as a buy. His proposed takeout price was S$2.17. This morning we have the answer to David's question and a quick result on Royston's idea.This morning, a wholly-owned subsidiary of Wheelock &amp; Co Ltd (20 HK)announced a S$598mm Voluntary Unconditional General Offer for the 23.79% of Wheelock Properties (S) Ltd (WP SP) that it does not already own.The Offer is at S$2.10/share and will be unconditional in all respects. Shareholders who accept the Offer will receive payment 7 business days from the receipt of their valid acceptances.The Offer was made when the stock was trading at or near 18 month lows, and comes at a 20.7% premium to last traded price, a 29% premium to 1mo VWAP, 22.8% premium to 3mo VWAP, 13.3% premium to 12-mo VWAP and is the highest price since early 2010.It comes at a multiple of 0.78x PNAV and 0.80x Adjusted PNAV and 0.70x ex-cash PNAV, all of which are only slightly above 10yr trading averages. That will disappoint some. Wheelock &amp; Co intends to delist the Company and squeeze out minorities where possible. 
The Expected Schedule

Date
Event


19 July 2018
Announcement of Offer


10 August 2018
Last Day for Despatch of Offer Document


24 August 2018
Last Day for Despatch of Offeree Circular with IFA Opinion


7 September 2018
Earliest Closing Date

The stock opens trading today above terms. I am not surprised. The offer is, on an ex-cash and ex-securities basis, at a bigger discount to adjusted NAV than should be expected. 