Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Huafa Property Services Group / Event-Driven

Huafa Property Services Group Company Limited operates as a property management company. The Company offers property and facility management, design and engineering consulting, brand introduction, hotel advisory, events, and exhibition services. Huafa Property Services Group serves clients in Hong Kong and China.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/huafa-property-services-group" target="_blank" data-smartkarma-citation="entities:5841:1" rel="noopener">Huafa Property Services Group (982 HK)</a> is currently <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0516/2024051600163.pdf" target="_blank" rel="noopener">suspended</a> pursuant to the Takeovers Code. </li>
<li>This SOE-backed property management play recently announced its highest-ever earnings.</li>
<li>Shares have gained ~32% in the past fortnight, touching a three-year high. IF an Offer were to unfold, expect an Offer Price ~10% above the last close. </li>
</ul>



Huafa Property Services Group (982 HK) is currently suspended pursuant to the Takeovers Code. 
This SOE-backed property management play recently announced its highest-ever earnings.
Shares have gained ~32% in the past fortnight, touching a three-year high. IF an Offer were to unfold, expect an Offer Price ~10% above the last close. 


Huafa Property (982 HK)'s Potential Offer

Malaysia Airports Holdings / Event-Driven

Malaysia Airports Holdings Berhad is an investment holding company.  The Company, through its subsidiaries, provides management, maintenance, and operation of designated airports.  Malaysia Airports also operates duty-free and non-duty free stores as well as provides food and beverage outlets at the airports.

<ul>
<li>Khazanah Nasional, the EPF,  the Abu Dhabi Investment Authority, and Global Infrastructure Partners, are offering to buy all shares not already owned in <a href="https://www.smartkarma.com/entities/malaysia-airports-holdings-bhd" target="_blank" data-smartkarma-citation="entities:117:1" rel="noopener">Malaysia Airports Holdings (MAHB MK)</a> at RM11.00/share.</li>
<li>The pre-conditional voluntary Offer price is a 5.77% premium to last close; but a life-time high. The Offeror consortium collectively holds 41.22% of shares out.</li>
<li>The pre-cons include regulatory approvals (in Malaysia, Turkey, Saudi Arabia, and Egypt). The Offer is subject to a 90% acceptance condition; which may be reduced. </li>
</ul>


Khazanah Nasional, the EPF,  the Abu Dhabi Investment Authority, and Global Infrastructure Partners, are offering to buy all shares not already owned in Malaysia Airports Holdings (MAHB MK) at RM11.00/share.
The pre-conditional voluntary Offer price is a 5.77% premium to last close; but a life-time high. The Offeror consortium collectively holds 41.22% of shares out.
The pre-cons include regulatory approvals (in Malaysia, Turkey, Saudi Arabia, and Egypt). The Offer is subject to a 90% acceptance condition; which may be reduced. 


Business On The Fly: Malaysia Airports (MAHB MK)'s RM11.00/Share Offer

Great Eastern Holdings Limited operates in the life insurance business. The Company provides fund management services including retirement plans and endowments as well as life and health insurance, personal accident insurance, and general insurance

<ul>
<li>
<a href="https://www.smartkarma.com/entities/great-eastern-holdings-ltd" target="_blank" data-smartkarma-citation="entities:13993:1" rel="noopener">Great Eastern Holdings (GE SP)</a> has consistently traded through <a href="https://www.smartkarma.com/entities/oversea-chinese-banking-corp" target="_blank" data-smartkarma-citation="entities:114:1" rel="noopener">OCBC (OCBC SP)</a>'s Offer terms from the onset. </li>
<li>OCBC did not declare its S$25.60 cash Offer final. And someone appears to be accumulating a stake to block an Exit/Delisting Offer, presumably towards negotiating a bump in terms.</li>
<li>But what happens if GE's free float falls &lt;10% at the close of the Offer and GE is suspended? And OCBC has no intention of restoring the float?</li>
</ul>



Great Eastern Holdings (GE SP) has consistently traded through OCBC (OCBC SP)'s Offer terms from the onset. 
OCBC did not declare its S$25.60 cash Offer final. And someone appears to be accumulating a stake to block an Exit/Delisting Offer, presumably towards negotiating a bump in terms.
But what happens if GE's free float falls &lt;10% at the close of the Offer and GE is suspended? And OCBC has no intention of restoring the float?


Equity Bottom-Up

Atlas Arteria Limted operates as an infrastructure developer and operator. The Company constructs highways, roads, bridges, and tunnels. Atlas Arteria also collects toll. Atlas Arteria serves clients worldwide.

<ul>
<li>Back in June 2022, US/Europe toll-road play <a href="https://www.smartkarma.com/entities/atlas-arteria-ltd" target="_blank" data-smartkarma-citation="entities:14430:1" rel="noopener">Atlas Arteria (ALX AU)</a> (ATLIX) <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02530630-2A1378680?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">rejected</a> IFM Global Infrastructure's request for limited company information, before deciding whether to submit a non-binding indicative proposal. </li>
<li>Undeterred, IFM, which held 15% of shares out at the time, bumped its stake to<a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02549751-2A1388878?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener"> 19%</a> two months later; and has continued to capitalise on Australia's creep provisions ever since. </li>
<li>This morning, IFM is understood to have lifted its stake to ~26.5%, in an apparent attempt to gain additional board representation. Another tilt cannot be ruled out. </li>
</ul>


Back in June 2022, US/Europe toll-road play Atlas Arteria (ALX AU) (ATLIX) rejected IFM Global Infrastructure's request for limited company information, before deciding whether to submit a non-binding indicative proposal. 
Undeterred, IFM, which held 15% of shares out at the time, bumped its stake to 19% two months later; and has continued to capitalise on Australia's creep provisions ever since. 
This morning, IFM is understood to have lifted its stake to ~26.5%, in an apparent attempt to gain additional board representation. Another tilt cannot be ruled out. 


Atlas Arteria (ALX AU): IFM Ups Stake As Shares Waver

ESR Group Limited operates as an integrated logistics real estate platform. The Company provides real estate private equity fund management, real estate investment trust, and other services. ESR Group conducts businesses in China, Japan, South Korea, Australia, Singapore, India, New Zealand, and other countries.

<ul>
<li>Back in February this year, various media sources reported that the key shareholders of warehouse/fund management play <a href="https://www.smartkarma.com/entities/esr-group-ltd" target="_blank" data-smartkarma-citation="entities:27983:1" rel="noopener">ESR Group (1821 HK)</a>, were exploring options, including a privatisation.</li>
<li>Long-Term holders Warburg Pincus and Canadian pension fund OMERS hold 14% and 10.7% respectively. ESR co-founders/directors Jeffrey Shen, Stuart Gibson, Charles de Portes, and Hwee Chiang collectively hold another ~23%.</li>
<li>Shares in ESR were <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0513/2024051300060.pdf" target="_blank" rel="noopener">suspended</a> this morning "pursuant to the Hong Kong Code on Takeovers and Mergers".</li>
</ul>


Back in February this year, various media sources reported that the key shareholders of warehouse/fund management play ESR Group (1821 HK), were exploring options, including a privatisation.
Long-Term holders Warburg Pincus and Canadian pension fund OMERS hold 14% and 10.7% respectively. ESR co-founders/directors Jeffrey Shen, Stuart Gibson, Charles de Portes, and Hwee Chiang collectively hold another ~23%.
Shares in ESR were suspended this morning "pursuant to the Hong Kong Code on Takeovers and Mergers".


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.