Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Canvest Environmental Protection Group / Event-Driven

<ul>
<li>Back on the 22 July, waste-to-energy play <a href="https://www.smartkarma.com/entities/canvest-environmental-protection-group-co-ltd" target="_blank" data-smartkarma-citation="entities:100:1" rel="noopener">Canvest Environmental (1381 HK)</a> announced a pre-conditional Offer from <a href="https://www.smartkarma.com/entities/grandblue-environment-co-a" target="_blank" data-smartkarma-citation="entities:17887:1" rel="noopener">Grandblue Environment (600323 CH)</a> at $4.90/share (best &amp; final), by way of a Scheme.</li>
<li>PRC anti-monopoly law and SAMR approvals were secured ~2.5 months from the Offer announcement. MoC, NDRC, SAMR and SAFE approvals remain outstanding. The pre-con long-stop is the 17th July 2025.</li>
<li>The transaction appears on track. However, Canvest's gross spread has widened 6.4% - out to 13.4% as I type - since <a href="https://www.smartkarma.com/entities/china-traditional-chinese-medicine" target="_blank" data-smartkarma-citation="entities:351:1" rel="noopener">China Traditional Chinese Medicine (570 HK)</a> blew up. That's excessive.</li>
</ul>


Back on the 22 July, waste-to-energy play Canvest Environmental (1381 HK) announced a pre-conditional Offer from Grandblue Environment (600323 CH) at $4.90/share (best &amp; final), by way of a Scheme.
PRC anti-monopoly law and SAMR approvals were secured ~2.5 months from the Offer announcement. MoC, NDRC, SAMR and SAFE approvals remain outstanding. The pre-con long-stop is the 17th July 2025.
The transaction appears on track. However, Canvest's gross spread has widened 6.4% - out to 13.4% as I type - since China Traditional Chinese Medicine (570 HK) blew up. That's excessive.


Canvest (1381 HK): This Is Trading Too Wide

<ul>
<li>On the 22 July, waste-to-energy play <a href="https://www.smartkarma.com/entities/canvest-environmental-protection-group-co-ltd" target="_blank" data-smartkarma-citation="entities:100:1" rel="noopener">Canvest Environmental Protection  (1381 HK)</a> announced a pre-conditional Offer from <a href="https://www.smartkarma.com/entities/grandblue-environment-co-a" target="_blank" data-smartkarma-citation="entities:17887:1" rel="noopener">Grandblue Environment (600323 CH)</a> at $4.90/share (best &amp; final), by way of a Scheme.</li>
<li>Terms mirror that announced on the 7th July. Best Approach (54.75% of shares out) is seeking to roll over 7.23%. Pre-cons include the usual regulators: MoC, NDRC, SAMR and SAFE.</li>
<li>Any new dividends paid will be netted. 4.478% blocking stake. Pre-IPO investor AEP Green Power, has 5.67%. Best Approach is required to abstain from voting on the Scheme and rollover.</li>
</ul>


On the 22 July, waste-to-energy play Canvest Environmental Protection  (1381 HK) announced a pre-conditional Offer from Grandblue Environment (600323 CH) at $4.90/share (best &amp; final), by way of a Scheme.
Terms mirror that announced on the 7th July. Best Approach (54.75% of shares out) is seeking to roll over 7.23%. Pre-cons include the usual regulators: MoC, NDRC, SAMR and SAFE.
Any new dividends paid will be netted. 4.478% blocking stake. Pre-IPO investor AEP Green Power, has 5.67%. Best Approach is required to abstain from voting on the Scheme and rollover.


Canvest (1381 HK): Trading Wide To Grandblue's Offer

<ul>
<li>Since waste-to-energy play <a href="https://www.smartkarma.com/entities/canvest-environmental-protection-group-co-ltd" target="_blank" data-smartkarma-citation="entities:100:1" rel="noopener">Canvest Environmental Protection (1381 HK)</a> announced a possible privatisation from <a href="https://www.smartkarma.com/entities/grandblue-environment-co-a" target="_blank" data-smartkarma-citation="entities:17887:1" rel="noopener">Grandblue Environment (600323 CH)</a> at $4.90/share (a 20.7% premium to undisturbed), shares are up just 6.4%. </li>
<li>There's a lot to pack in here, not the least being this is an indicative Pre-Conditional Offer.</li>
<li>But the fact the announcement mentions rolling over a specific number of shares of the controlling shareholders (7.23%), suggests negotiations are well advanced. So we explore.</li>
</ul>


Since waste-to-energy play Canvest Environmental Protection (1381 HK) announced a possible privatisation from Grandblue Environment (600323 CH) at $4.90/share (a 20.7% premium to undisturbed), shares are up just 6.4%. 
There's a lot to pack in here, not the least being this is an indicative Pre-Conditional Offer.
But the fact the announcement mentions rolling over a specific number of shares of the controlling shareholders (7.23%), suggests negotiations are well advanced. So we explore.


Canvest (1381 HK): Evaluating A Privatisation

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

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.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/canvest-environmental-protection-group-co-ltd" target="_blank" data-smartkarma-citation="entities:100:1" rel="noopener">Canvest Environmental Protection Group (1381 HK)</a> disclosed a pre-conditional Cayman scheme privatisation from <a href="https://www.smartkarma.com/entities/grandblue-environment-co-a" target="_blank" data-smartkarma-citation="entities:17887:1" rel="noopener">Grandblue Environment Co A (600323 CH)</a> at HK$4.90 per share, an 11.6% premium to the last close price.</li>
<li>The precondition relates to the completion of capital injection into the offeror, Grandblue shareholder, and regulatory approvals. The heavy presence of SOE entities makes this a formality.</li>
<li>While not a knockout bid, the offer (which is final) is reasonable. Shareholders with blocking stakes will be supportive. Timing is the key risk as the offer is long-dated.</li>
</ul>



Canvest Environmental Protection Group (1381 HK) disclosed a pre-conditional Cayman scheme privatisation from Grandblue Environment Co A (600323 CH) at HK$4.90 per share, an 11.6% premium to the last close price.
The precondition relates to the completion of capital injection into the offeror, Grandblue shareholder, and regulatory approvals. The heavy presence of SOE entities makes this a formality.
While not a knockout bid, the offer (which is final) is reasonable. Shareholders with blocking stakes will be supportive. Timing is the key risk as the offer is long-dated.


Canvest Environmental (1381 HK): Grandblue’s Pre-Condition Privatisation at HK$4.90

<ul>
<li>
<a href="https://www.smartkarma.com/entities/grandblue-environment-co-a" target="_blank" data-smartkarma-citation="entities:17887:1" rel="noopener">Grandblue Environment Co A (600323 CH)</a> disclosed a potential pre-conditional privatisation of <a href="https://www.smartkarma.com/entities/canvest-environmental-protection-group-co-ltd" target="_blank" data-smartkarma-citation="entities:100:1" rel="noopener">Canvest Environmental Protection Group (1381 HK)</a> at HK$4.90 per share, a 20.7% premium to the last close price. </li>
<li>Completing the capital injection from SOE entities into the offeror is a precondition. Grandblue also proposes that the controlling shareholder roll over 7.23% of its effective 44.75% stake. </li>
<li>While not a knockout bid, the offer is reasonable. Shareholders with blocking stakes should support a binding proposal. Timing is the key risk. </li>
</ul>



Grandblue Environment Co A (600323 CH) disclosed a potential pre-conditional privatisation of Canvest Environmental Protection Group (1381 HK) at HK$4.90 per share, a 20.7% premium to the last close price. 
Completing the capital injection from SOE entities into the offeror is a precondition. Grandblue also proposes that the controlling shareholder roll over 7.23% of its effective 44.75% stake. 
While not a knockout bid, the offer is reasonable. Shareholders with blocking stakes should support a binding proposal. Timing is the key risk. 


Canvest Environmental (1381 HK): Possible Privatisation at HK$4.90

Hong Kong

Shanghai Industrial Holdings Limited is an investment holding company that focuses on three core businesses: infrastructure facilities, real estate and consumer products. SIHL invests in toll road projects, water-related business, property development, investment, hotel operation, the manufacturing and sale of cigarettes, packaging materials and printed products.

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Shanghai Industrial Holdings (363 HK)

Canvest (1381 HK): This Is Trading Too Wide

After TCM, arbitrageurs don't have the risk appetite to be hit with a double whammy before year-end. However, Canvest's approval process is more...

David Blennerhassett

Canvest (1381 HK): Trading Wide To Grandblue's Offer

Assuming late-December payment, this is trading at a gross/annualised spread of 12.1%/31.6%. That looks too wide. I'd buy here, and on any weakness.

David Blennerhassett

Canvest (1381 HK): Evaluating A Privatisation

Canvest Environmental Protection Group (1381 HK) announces a pre-con Offer from Grandblue Environment Co A (600323 CH) at $4.90/share (best &...

David Blennerhassett

Canvest Environmental (1381 HK): Grandblue’s Pre-Condition Privatisation at HK$4.90

While not a knockout bid, the offer (which is final) is reasonable. Shareholders with blocking stakes will be supportive. Timing is the key risk as...

Arun George

Canvest Environmental (1381 HK): Possible Privatisation at HK$4.90

While not a knockout bid, the offer is reasonable. Shareholders with blocking stakes should support a binding proposal. The key risk is the timing...

Arun George

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