IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

Arun has over 15 years’ experience covering the Technology sector. During this time, he has worked with technology start-ups and as an equity analyst in investment banks and independent research firms. He was formerly a Technology Analyst for Canaccord Genuity, Altium Securities, Espirito Santo Investment Bank, Noble Group and Clear Capital. He has a dual Master’s degree in Financial Engineering and Industrial and Operations Engineering from the University of Michigan. He obtained his Bachelor’s degree in Mechanical Engineering from the Indian Institute of Technology, Bombay. He is also a CFA charterholder.

IPOs and Catalysts/Events

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Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

Zhuhai Holdings Investment / Event-Driven

<p>On Friday after market close, <a href="https://www.smartkarma.com/entities/zhuhai-holdings-investment-group-ltd" target="_blank" data-smartkarma-citation="entities:17863:1" rel="noopener">Zhuhai Holdings Investment (908 HK)</a> announced a pre-conditional privatisation offer by ZJ Holdings, the controlling shareholder. The cash offer price of HK$3.06 per share is a decent 37.84% premium to the last trading price of HK$2.220 per share (15 January prior to the trading halt). </p><p>The key pre-condition is regulatory approval by three government agencies which should be forthcoming as the offeror is an SOE. The satisfaction of the pre-conditions is estimated to take around four months. </p><div class="content-highlight"><p>The key conditions precedent are the headcount test and the scheme approved by at least 75% disinterested shareholders (&lt;10% disinterested shareholders rejection). The offeror and concert parties represent 878.2 million shares or 61.50% of shares outstanding. Disinterested scheme shareholders represent 549.6 million shares or 38.50% of shares outstanding which implies the 10% blocking stake is 55.0 million shares or 3.85% of shares outstanding. We believe that the privatisation bid will succeed due to the attractive bid.  </p></div>

On Friday after market close, Zhuhai Holdings Investment (908 HK) announced a pre-conditional privatisation offer by ZJ Holdings, the controlling shareholder. The cash offer price of HK$3.06 per share is a decent 37.84% premium to the last trading price of HK$2.220 per share (15 January prior to the trading halt). The key pre-condition is regulatory approval by three government agencies which should be forthcoming as the offeror is an SOE. The satisfaction of the pre-conditions is estimated to take around four months. The key conditions precedent are the headcount test and the scheme approved by at least 75% disinterested shareholders (&lt;10% disinterested shareholders rejection). The offeror and concert parties represent 878.2 million shares or 61.50% of shares outstanding. Disinterested scheme shareholders represent 549.6 million shares or 38.50% of shares outstanding which implies the 10% blocking stake is 55.0 million shares or 3.85% of shares outstanding. We believe that the privatisation bid will succeed due to the attractive bid.  

Zhuhai Holdings Investment

Zhuhai Holdings Privatisation Offer