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.

Event-Driven

<ul>
<li>The Ong directors tried every trick in the book to derail the <a href="https://www.smartkarma.com/entities/hwa-hong-corp-ltd" target="_blank" data-smartkarma-citation="entities:6648:1" rel="noopener">Hwa Hong Corp (HWAH SP)</a> offer. The trump card was hiring Evercore to attract competing offers by 25 July.</li>
<li>The Board confirmed today that there are no competing offers. This is a catalyst for shareholders sitting on the fence to accept the S$0.40 per share offer.</li>
<li>The offer closes on 1 August. While meeting the 50%+ minimum acceptance condition will be a close-run, we think it will be met. The gross spread is 5.3%.     </li>
</ul>


The Ong directors tried every trick in the book to derail the Hwa Hong Corp (HWAH SP) offer. The trump card was hiring Evercore to attract competing offers by 25 July.
The Board confirmed today that there are no competing offers. This is a catalyst for shareholders sitting on the fence to accept the S$0.40 per share offer.
The offer closes on 1 August. While meeting the 50%+ minimum acceptance condition will be a close-run, we think it will be met. The gross spread is 5.3%.     


Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>As a result of market acquisitions, the Offeror for <a href="https://www.smartkarma.com/entities/hwa-hong-corp-ltd" target="_blank" data-smartkarma-citation="entities:6648:1" rel="noopener">Hwa Hong Corp (HWAH SP)</a> now holds 30.0%, triggering a mandatory general offer (MGO). </li>
<li>Including shares tendered, the Offeror controls 38.24%. The Offer remains subject to a 50% acceptance condition. HWAH directors holding 29.26% of shares still do not intend to accept the Offer. </li>
<li>The S$0.40/share Offer price has been declared final. The final closing date is 1 August. This transaction will go down to the wire.</li>
</ul>


As a result of market acquisitions, the Offeror for Hwa Hong Corp (HWAH SP) now holds 30.0%, triggering a mandatory general offer (MGO). 
Including shares tendered, the Offeror controls 38.24%. The Offer remains subject to a 50% acceptance condition. HWAH directors holding 29.26% of shares still do not intend to accept the Offer. 
The S$0.40/share Offer price has been declared final. The final closing date is 1 August. This transaction will go down to the wire.


Hwa Hong (HWAH SP): MGO Triggered, Offeror Now Controls 38.2%

<ul>
<li>The Circular, containing the IFA opinion and the directors' recommendation, was despatched after close yesterday. The IFA says fair and the directors recommend shareholders accept the Offer.</li>
<li>However ... directors holding 29.26% of shares out do not intend to accept the Offer. The intention of an additional 10.9% held by Ong family members is not known.</li>
<li>No word on Hong Leong Investment as to their 5.1% stake. The IFA notes the revised Offer terms are a 20.8% discount to the revalued NAV of S$0.5052/share</li>
</ul>


The Circular, containing the IFA opinion and the directors' recommendation, was despatched after close yesterday. The IFA says fair and the directors recommend shareholders accept the Offer.
However ... directors holding 29.26% of shares out do not intend to accept the Offer. The intention of an additional 10.9% held by Ong family members is not known.
No word on Hong Leong Investment as to their 5.1% stake. The IFA notes the revised Offer terms are a 20.8% discount to the revalued NAV of S$0.5052/share


Hwa Hong (HWAH SP): Directors Recommend Offer. But Not Really ...

<ul>
<li>The IFA considers the S$0.40 per share offer for <a href="https://www.smartkarma.com/entities/hwa-hong-corp-ltd" target="_blank" data-smartkarma-citation="entities:6648:1" rel="noopener">Hwa Hong Corp (HWAH SP)</a> to be fair and reasonable. Consequently, the recommending directors recommend that shareholders accept the offer.  </li>
<li>The offer which closes on 28 June continues to be subject to a 50%+ minimum acceptance condition. The offeror including valid acceptances represents 24.86% of outstanding shares.</li>
<li>Ong directors/families (29.26% stake) will not accept the offer hoping for an increasingly unlikely superior proposal. The shares are trading tight to terms (1.3% gross spread).</li>
</ul>


The IFA considers the S$0.40 per share offer for Hwa Hong Corp (HWAH SP) to be fair and reasonable. Consequently, the recommending directors recommend that shareholders accept the offer.  
The offer which closes on 28 June continues to be subject to a 50%+ minimum acceptance condition. The offeror including valid acceptances represents 24.86% of outstanding shares.
Ong directors/families (29.26% stake) will not accept the offer hoping for an increasingly unlikely superior proposal. The shares are trading tight to terms (1.3% gross spread).


Hwa Hong’s Directors Recommend Accepting the S$0.40 Voluntary Conditional Offer

<ul>
<li>On the 1 June, a consortium comprising Ong Choo Eng, his son Ong Eng Yaw, Roswell Assets, Dymon Asia, and Crytalic Star dispatched the Offer for <a href="https://www.smartkarma.com/entities/hwa-hong-corp-ltd" target="_blank" data-smartkarma-citation="entities:6648:1" rel="noopener">Hwa Hong (HWAH SP)</a>.</li>
<li>With shares trading through terms, there was no tendering. The consortium has now bumped the Offer to S$0.40 from S$0.37/share and declared the terms final.</li>
<li>The revised Offer price is a 37.9% premium to last close and a 9-year high. The question is whether this is enough to settle Hwa Hong's intergenerational shareholder squabble.</li>
</ul>


On the 1 June, a consortium comprising Ong Choo Eng, his son Ong Eng Yaw, Roswell Assets, Dymon Asia, and Crytalic Star dispatched the Offer for Hwa Hong (HWAH SP).
With shares trading through terms, there was no tendering. The consortium has now bumped the Offer to S$0.40 from S$0.37/share and declared the terms final.
The revised Offer price is a 37.9% premium to last close and a 9-year high. The question is whether this is enough to settle Hwa Hong's intergenerational shareholder squabble.


Hwa Hong Corp (HWAH SP): The Consortium Bumps And Declares Offer Final

Singapore

City Developments Limited is a property developer and owner. The Company, through its subsidiaries, are principally engaged in the investment of properties and shares, property management, project management and the provision of consultancy services, hospitality-related information technology, and procurement services. City Developments has a global presence.

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City Developments (CIT SP)

Hwa Hong Confirms No Competing Offers

It will be close but we think the offer meets the 50%+ minimum acceptance condition. The offer lapses at 5:30 pm on 1 August. At the last close,...

Arun George

Hwa Hong (HWAH SP): MGO Triggered, Offeror Now Controls 38.2%

Currently trading at terms. This remains a hostile Offer. I still think this Offer will (just) fail to meet the 50% acceptance condition. This is...

David Blennerhassett

Hwa Hong Corp (HWAH SP): The Consortium Bumps And Declares Offer Final

This remains a hostile Offer. I expected a bump and we got one. It has been declared final. I can see this Offer failing to meet the 50%...

David Blennerhassett

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52-week Range

Market Cap (USDm)

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Hwa Hong Confirms No Competing Offers

It will be close but we think the offer meets the 50%+ minimum acceptance condition. The offer lapses at 5:30 pm on 1 August. At the last close,...

Arun George

Hwa Hong (HWAH SP): MGO Triggered, Offeror Now Controls 38.2%

Currently trading at terms. This remains a hostile Offer. I still think this Offer will (just) fail to meet the 50% acceptance condition. This is...

David Blennerhassett

Hwa Hong (HWAH SP): Directors Recommend Offer. But Not Really ...

This remains a hostile Offer. I can still see this Offer failing to meet the 50% acceptance condition. This is an avoid, unless the spread were to...

David Blennerhassett

Hwa Hong’s Directors Recommend Accepting the S$0.40 Voluntary Conditional Offer

We think that the offer will meet the 50%+ minimum acceptance condition. At the last close, the gross spread to the offer is 1.3%.

Arun George

Hwa Hong Corp (HWAH SP): The Consortium Bumps And Declares Offer Final

This remains a hostile Offer. I expected a bump and we got one. It has been declared final. I can see this Offer failing to meet the 50%...

David Blennerhassett