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

Yixin (2858 HK)'s Indicative Downstream Offer

Yixin Supported By Indicative Chain Principle Price

Bitauto (BITA US): Done Deal. Keep An Eye on Yixin's MGO

Quiddity Advisors

Event-Driven

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<p>Back on the 13 September 2019, <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent Holdings (700 HK)</a> and Hammer Capital tabled a preliminary non-binding <a href="http://ir.bitauto.com/news-releases/news-release-details/bitauto-announces-receipt-preliminary-non-binding-going-private" target="_blank" rel="noopener">proposal</a> for <a href="https://www.smartkarma.com/entities/bitauto-holdings-ltd-adr" target="_blank" data-smartkarma-citation="entities:12004:1" rel="noopener">Bitauto Holdings Ltd Adr (BITA US)</a> at US$16/ADS, a ~20.6% premium to last close.</p>
<p>On the 12 June of this year, Bitauto <a href="http://ir.bitauto.com/news-releases/news-release-details/bitauto-enters-definitive-agreement-going-private-transaction" target="_blank" rel="noopener">announced</a> it had entered into a definitive Merger Agreement with Tencent and Hammer at US$16/ADS. Shareholders holding 55.3% of shares out have agreed to vote in favour of the Merger. The proposal required two-thirds. As discussed in <a href="https://skr.ma/BkDTp" target="_blank" rel="noopener">T<em>encent's Potential Downstream Offer For Yixin</em></a> and <em><a href="https://skr.ma/dCrB8" target="_blank" rel="noopener">Bitauto (BITA US): Done Deal. Keep An Eye on Yixin's MGO</a></em>, the deal was done.</p>
<p>Bitauto shareholders <a href="https://ir.bitauto.com/static-files/e04db9da-f521-4630-9b28-4db300df73a7" target="_blank" rel="noopener">approved</a> the merger plan on the 23 October - 88.9% of shares out attended the vote (present or via proxy), 99.9% of which voted for the merger.</p>
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<p>Bitauto owns ~43.72% of shares out in <a href="https://www.smartkarma.com/entities/yixin-group-ltd" target="_blank" data-smartkarma-citation="entities:26008:1" rel="noopener">Yixin Group Ltd (2858 HK)</a>. Tencent holds 20.58%, JD.com 10.73%, and Hammer 1.48%. Once the Bitauto proposal completes, there will be a change in statutory control in Yixin, obligating Tencent and concert parties to make an <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0615/2020061501449.pdf" target="_blank" rel="noopener">unconditional mandatory general</a> offer (MGO). The downstream Offer will be HK$1.9088/share.</p>
<p><strong>The New News</strong></p>
<p>All conditions to the Bitauto merger were fulfilled on the <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/1106/2020110600073.pdf" target="_blank" rel="noopener">4 November</a>. The MGO is now triggered. The Composite Document is expected to be despatched on or before the 11 November, following which the offer will be open to acceptances.</p>
<p>More below the fold.</p>
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Back on the 13 September 2019, Tencent Holdings (700 HK) and Hammer Capital tabled a preliminary non-binding proposal for Bitauto Holdings Ltd Adr (BITA US) at US$16/ADS, a ~20.6% premium to last close.
On the 12 June of this year, Bitauto announced it had entered into a definitive Merger Agreement with Tencent and Hammer at US$16/ADS. Shareholders holding 55.3% of shares out have agreed to vote in favour of the Merger. The proposal required two-thirds. As discussed in Tencent's Potential Downstream Offer For Yixin and Bitauto (BITA US): Done Deal. Keep An Eye on Yixin's MGO, the deal was done.
Bitauto shareholders approved the merger plan on the 23 October - 88.9% of shares out attended the vote (present or via proxy), 99.9% of which voted for the merger.


Bitauto owns ~43.72% of shares out in Yixin Group Ltd (2858 HK). Tencent holds 20.58%, JD.com 10.73%, and Hammer 1.48%. Once the Bitauto proposal completes, there will be a change in statutory control in Yixin, obligating Tencent and concert parties to make an unconditional mandatory general offer (MGO). The downstream Offer will be HK$1.9088/share.
The New News
All conditions to the Bitauto merger were fulfilled on the 4 November. The MGO is now triggered. The Composite Document is expected to be despatched on or before the 11 November, following which the offer will be open to acceptances.
More below the fold.









Yixin (2858 HK)’s Downstream Unconditional MGO