Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>The <a href="https://www.smartkarma.com/entities/naspers-ltd" target="_blank" data-smartkarma-citation="entities:21085:1" rel="noopener">Naspers (NPN SJ)</a> / <a href="https://www.smartkarma.com/entities/prosus-nv" target="_blank" data-smartkarma-citation="entities:28104:1" rel="noopener">Prosus (PRX NA)</a> circularity was too complex. Lots of people hated it. It was actually easier than most thought, but optically was difficult to reconcile. </li>
<li>
<a href="https://www.smartkarma.com/entities/swire-pacific-ltd-cl-a" target="_blank" data-smartkarma-citation="entities:10433:1" rel="noopener">Swire Pacific (19 HK)</a> was a clear buy: there is no justification for assigning a similar discount for cash from the US Coke ops as you would to unlisted ops</li>
<li>A residual <a href="https://www.smartkarma.com/entities/nippon-telegraph-telephone-corporation" target="_blank" data-smartkarma-citation="entities:623:1" rel="noopener">NTT (9432 JP)</a> individual small-holder shareholding tenure reward does not get split 25:1 when the stock gets split 25:1. It doesn't mean much, but it's an interesting artefact. </li>
</ul>


The Naspers (NPN SJ) / Prosus (PRX NA) circularity was too complex. Lots of people hated it. It was actually easier than most thought, but optically was difficult to reconcile. 

Swire Pacific (19 HK) was a clear buy: there is no justification for assigning a similar discount for cash from the US Coke ops as you would to unlisted ops
A residual NTT (9432 JP) individual small-holder shareholding tenure reward does not get split 25:1 when the stock gets split 25:1. It doesn't mean much, but it's an interesting artefact. 


Last Week in Event SPACE: Naspers/Prosus, Swire Pacific, NTT, Aussie Tax-Loss Selling

Listed Real Estate Asia, KT Capital Group

Jacob Cheng

Listed Real Estate Asia

KT Capital Group

Principal investments and advisory firm that focuses on connecting the CIS countries with East Asia.

Principal investments and advisory firm

Equity Bottom-Up

<ul>
<li>In this note, we looked at the privatization offer from Chow Tai Fook, and its impact on NWD 17 HK</li>
<li>The proposed transaction will help NWD unlock its value and reduce gearing, which has been investor’s major concern</li>
<li>It is only the beginning of part of strategic review of NWD group.  We view more positive catalysts are coming</li>
</ul>


In this note, we looked at the privatization offer from Chow Tai Fook, and its impact on NWD 17 HK
The proposed transaction will help NWD unlock its value and reduce gearing, which has been investor’s major concern
It is only the beginning of part of strategic review of NWD group.  We view more positive catalysts are coming


Short Note: CTF, Shareholder of NWD 17 HK, Announced Proposed Privatization for NWS, Positive to NWD

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/nws-holdings-ltd" target="_blank" data-smartkarma-citation="entities:3350:1" rel="noopener">Nws Holdings (659 HK)</a> announced a pre-conditional voluntary general offer from the Cheng family at HK$9.15 or HK$9.47 per share (with a potential 2HFY2023 dividend of HK$0.32 per share).</li>
<li>The pre-condition related to regulatory approval from the Insurance Authority of Hong Kong and the Bermuda Monetary Authority is a formality due to the Cheng family's current sway over NWS.</li>
<li>The key condition is approval by independent <a href="https://www.smartkarma.com/entities/new-world-development" target="_blank" data-smartkarma-citation="entities:7037:1" rel="noopener">New World Development (17 HK)</a> shareholders which is likely as the offer is attractive, reduces NWD’s gearing and results in a special dividend.  </li>
</ul>



Nws Holdings (659 HK) announced a pre-conditional voluntary general offer from the Cheng family at HK$9.15 or HK$9.47 per share (with a potential 2HFY2023 dividend of HK$0.32 per share).
The pre-condition related to regulatory approval from the Insurance Authority of Hong Kong and the Bermuda Monetary Authority is a formality due to the Cheng family's current sway over NWS.
The key condition is approval by independent New World Development (17 HK) shareholders which is likely as the offer is attractive, reduces NWD’s gearing and results in a special dividend.  


NWS Holding (659 HK): Pre-Conditional VGO from the Cheng Family

<ul>
<li>Chow Tai Fook (CTFE) has made a <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2023/0627/2023062700091.pdf" target="_blank" rel="noopener">voluntary cash Offer</a> for <a href="https://www.smartkarma.com/entities/new-world-development" target="_blank" data-smartkarma-citation="entities:7037:1" rel="noopener">New World Development (17 HK)</a>'s (NWD) 60.88%-held <a href="https://www.smartkarma.com/entities/nws-holdings-ltd" target="_blank" data-smartkarma-citation="entities:3350:1" rel="noopener">NWS Holdings (659 HK)</a> at HK$9.15/share, a 22.2% premium to undisturbed. </li>
<li>CTFE and connected parties hold 45.24% of NWD, therefore the parent is effectively injecting ~US$2.75bn of cash into NWD for its NWS stake.</li>
<li>The Offer is subject to regulatory approvals in Hong Kong and Bermuda. These will not be an issue given CTFE is NWD's ultimate shareholder. </li>
</ul>


Chow Tai Fook (CTFE) has made a voluntary cash Offer for New World Development (17 HK)'s (NWD) 60.88%-held NWS Holdings (659 HK) at HK$9.15/share, a 22.2% premium to undisturbed. 
CTFE and connected parties hold 45.24% of NWD, therefore the parent is effectively injecting ~US$2.75bn of cash into NWD for its NWS stake.
The Offer is subject to regulatory approvals in Hong Kong and Bermuda. These will not be an issue given CTFE is NWD's ultimate shareholder. 


Chow Tai Fooks' Offer For NWS (659 HK). Buy NWD (17 HK)

Thematic (Sector/Industry)

<ul>
<li>The US paused the rate hike, but delivered a hawkish surprise to the market that showed a median projection of 2 additional rate hikes instead of one</li>
<li>In China, PBoC cut 7 day repo rate for 10bps, and then cut MLF by also 10bps from 2.75% to 2.65%</li>
<li>Stock market is always looking forward and trades on expectations of the fundamentals; BUY Chinese names COLI 688 HK,  HLP 101 HK, and HK name NWD 17 HK</li>
</ul>


The US paused the rate hike, but delivered a hawkish surprise to the market that showed a median projection of 2 additional rate hikes instead of one
In China, PBoC cut 7 day repo rate for 10bps, and then cut MLF by also 10bps from 2.75% to 2.65%
Stock market is always looking forward and trades on expectations of the fundamentals; BUY Chinese names COLI 688 HK,  HLP 101 HK, and HK name NWD 17 HK


Short Note: US Rate Pause, China Stimulus, and the HK Rebound

Hong Kong

New World Development Company Limited, through its subsidiaries, develops and invests in properties, provides contracting services, property management, and transportation services.  The Company also operates infrastructure business, telecommunication services, department stores, hotels and restaurants, and media and technology business.

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New World Development (17 HK)

Last Week in Event SPACE: Naspers/Prosus, Swire Pacific, NTT, Aussie Tax-Loss Selling

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

Short Note: CTF, Shareholder of NWD 17 HK, Announced Proposed Privatization for NWS, Positive to NWD

CTF, NWD's shareholder proposed to privatize NWS. We view the transaction as positive as it streamlines corporate structure, and will reduce NWD...

Jacob Cheng

NWS Holding (659 HK): Pre-Conditional VGO from the Cheng Family

The pre-condition (regulatory approvals) and key condition (NWD shareholder approval) pose a low risk. At the current price of HK$8.89, the spread...

Arun George

Chow Tai Fooks' Offer For NWS (659 HK). Buy NWD (17 HK)

Assuming the final divi of HK$0.31/share is added on top of the offer price; and payment around 7 months out, I'd be buying up to $8.95 or so (10%...

David Blennerhassett

Short Note: US Rate Pause, China Stimulus, and the HK Rebound

Over the week, US delivered hawkish surprise while China continued to cut rates. On the back of slowing export and weak domestic demand, we expect...

Jacob Cheng

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