Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Acotec Scientific Holdings / Event-Driven

<ul>
<li>With a minimum acceptance hurdle of 50% and irrevocables of 60.14%, <a href="https://www.smartkarma.com/entities/acotec-scientific-holdings-limited" target="_blank" data-smartkarma-citation="entities:32176:1" rel="noopener">Acotec Scientific Holdings (6669 HK)</a>'s partial offer was always going to turn unconditional. </li>
<li>As per last night's announcement, valid acceptances were 78.59%. The Offer has automatically been extended to the 9 February - this is the final close. Pro-ration is currently 82.7%.</li>
<li>The minor quirk for partial Offers is that payment occurs within seven business days of the final close, not seven days from the Offer turning unconditional. </li>
</ul>


With a minimum acceptance hurdle of 50% and irrevocables of 60.14%, Acotec Scientific Holdings (6669 HK)'s partial offer was always going to turn unconditional. 
As per last night's announcement, valid acceptances were 78.59%. The Offer has automatically been extended to the 9 February - this is the final close. Pro-ration is currently 82.7%.
The minor quirk for partial Offers is that payment occurs within seven business days of the final close, not seven days from the Offer turning unconditional. 


Acotec (6669 HK): Current Proration of 82.7%

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>As expected, <a href="https://www.smartkarma.com/entities/acotec-scientific-holdings-limited" target="_blank" data-smartkarma-citation="entities:32176:1" rel="noopener">Acotec Scientific Holdings (6669 HK)</a>’s partial offer from <a href="https://www.smartkarma.com/entities/boston-scientific-corp" target="_blank" data-smartkarma-citation="entities:11115:1" rel="noopener">Boston Scientific (BSX US)</a> at HK$20 per share is now unconditional. The final closing date is 9 February.</li>
<li>The current acceptances representing 78.59% of outstanding shares imply current proration is 82.71%. Current pro-ration suggests CA Medtech post-offer shares will be counted towards the public float.</li>
<li>Based on the current proration of 82.71% and at the last close price of HK$19.78 per share, the breakeven price is HK$19.00 per share. </li>
</ul>


As expected, Acotec Scientific Holdings (6669 HK)’s partial offer from Boston Scientific (BSX US) at HK$20 per share is now unconditional. The final closing date is 9 February.
The current acceptances representing 78.59% of outstanding shares imply current proration is 82.71%. Current pro-ration suggests CA Medtech post-offer shares will be counted towards the public float.
Based on the current proration of 82.71% and at the last close price of HK$19.78 per share, the breakeven price is HK$19.00 per share. 


Acotec (6669 HK): Boston Scientific’s HK$20 Partial Offer Unconditional

HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

<ul>
<li>With the recent rally in the equity markets in Hong Kong and China, we think the asset play investment thesis for <a href="https://www.smartkarma.com/entities/china-dongxiang-group-co" target="_blank" data-smartkarma-citation="entities:1068:1" rel="noopener">China Dongxiang Group Co (3818 HK)</a> has revived.  </li>
<li>We estimate its investment portfolio value may have increased by HK$2bn since end-Sep, yet market capitalisation only rose HK$500m, suggesting still significant 77% discount. </li>
<li>Encouraging recent developments at <a href="https://www.smartkarma.com/entities/alibaba-group" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group (9988 HK)</a> and Ant Financial, which both are its holdings, are positive. The reduction is losses for sportswear business is an added driver. </li>
</ul>


With the recent rally in the equity markets in Hong Kong and China, we think the asset play investment thesis for China Dongxiang Group Co (3818 HK) has revived.  
We estimate its investment portfolio value may have increased by HK$2bn since end-Sep, yet market capitalisation only rose HK$500m, suggesting still significant 77% discount. 
Encouraging recent developments at Alibaba Group (9988 HK) and Ant Financial, which both are its holdings, are positive. The reduction is losses for sportswear business is an added driver. 


China Dongxiang (3818 HK): Extremely Deep Discount to Cash and Investments

<ul>
<li>A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.</li>
<li>ECM developments - Quiet week as <a href="https://www.smartkarma.com/entities/vinfast" target="_blank" data-smartkarma-citation="entities:36550:1" rel="noopener">VinFast (1905332D VN)</a> continues to pre-market a US$1bn IPO.</li>
<li>Event-Driven developments - <a href="https://www.smartkarma.com/entities/acotec-scientific-holdings-limited" target="_blank" data-smartkarma-citation="entities:32176:1" rel="noopener">Acotec Scientific Holdings (6669 HK)</a>, <a href="https://www.smartkarma.com/entities/nitro-software-ltd" target="_blank" data-smartkarma-citation="entities:30943:1" rel="noopener">Nitro Software Ltd (NTO AU)</a>, <a href="https://www.smartkarma.com/entities/norwest-energy-nl" target="_blank" data-smartkarma-citation="entities:1433:1" rel="noopener">Norwest Energy NL (NWE AU)</a>, <a href="https://www.smartkarma.com/entities/warrego-energy-ltd-082ab214-f4bb-4224-b321-8977486cd661" target="_blank" data-smartkarma-citation="entities:7808:1" rel="noopener">Warrego Energy (WGO AU)</a>, <a href="https://www.smartkarma.com/entities/halcyon-agri-corp-ltd" target="_blank" data-smartkarma-citation="entities:18191:1" rel="noopener">Halcyon Agri (HACL SP)</a>. </li>
</ul>


A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
ECM developments - Quiet week as VinFast (1905332D VN) continues to pre-market a US$1bn IPO.
Event-Driven developments - Acotec Scientific Holdings (6669 HK), Nitro Software Ltd (NTO AU), Norwest Energy NL (NWE AU), Warrego Energy (WGO AU), Halcyon Agri (HACL SP). 


Weekly Deals Digest (08 Jan) - Acotec, Halycon, Warrego, Nitro, Norwest, VinFast

<ul>
<li>On the 12 December, <a href="https://www.smartkarma.com/entities/acotec-scientific-holdings-limited" target="_blank" data-smartkarma-citation="entities:32176:1" rel="noopener">Acotec Scientific (6669 HK)</a> announced a HK$20/share partial Offer from Boston Scientific, a 31.6% premium to last close, but below August 2021's IPO price of HK$23.80/share.  </li>
<li>Boston Scientific will acquire at least 156.7mn shares (50.01%), up to 203.7mn (65%). Irrevocables total 60.14%, comprising shares held by CA Medtech/CPE Investment, Jing Li (chairman, CEO), and Bliss Way.</li>
<li>The Composite Doc is now out and the Offer is open for acceptances. This Offer is done. The key question is the final proration. </li>
</ul>


On the 12 December, Acotec Scientific (6669 HK) announced a HK$20/share partial Offer from Boston Scientific, a 31.6% premium to last close, but below August 2021's IPO price of HK$23.80/share.  
Boston Scientific will acquire at least 156.7mn shares (50.01%), up to 203.7mn (65%). Irrevocables total 60.14%, comprising shares held by CA Medtech/CPE Investment, Jing Li (chairman, CEO), and Bliss Way.
The Composite Doc is now out and the Offer is open for acceptances. This Offer is done. The key question is the final proration. 


Acotec (6669 HK): Boston Scientific's Partial Offer Open For Tendering

China

PW Medtech Group Ltd is a medical device developer, manufacturer and marketer in China.  The Company's products include infusion products and orthopedic implant products.

Guangdong Biolight Meditech Company Limited develops, manufactures and sells medical monitor and related equipment. The Company's multi-parameter monitors include handheld monitor, conventional integrated monitor and plug-in monitor.

Venus MedTech (HangZhou) Inc. develops and sells cardiovascular devices. The Company offers products including aorta, compression loading and conveying systems, and pulmonary artery. Venus MedTech (HangZhou) markets its products throughout China.

Shanghai Conant Optics Co Ltd manufactures hard resin lens, glasses and accessories.  The Company's products include single vision lens, bifocal lens, progressive lens, middle to high index lens, polarized lens, and photochromic lens.

Jiangsu Skyray Instrument Company Limited develops, produces and sells chemical analysis equipment and application software. The Company's main products included X-ray fluorescence spectrometers, Inductively Coupled Plasma Spectrometers, atomic absorption spectrophotometers, gas chromatography, liquid chromatography, etc.

Shanghai Kinetic Medical Company Ltd. develops and manufactures orthopedic devices.  The Company produces a kyphoplasty tool kit, which includes guide pins, introducer cannula, bone filler devices, dilator and bone drill; a balloon catheter; and a puncture needle.

Beijing Chunlizhengda Medical Instruments Co.,Ltd. designs, develops, manufactures and markets patented implants and instruments for joint replacement, spinal fixation and trauma.

Beijing Chunlizhengda Medical Instruments (1858 HK)

Beijing Chunlizhengda Medical Instruments

Ningbo David Medical Device Company Limited develops, produces and sales infant care equipments. The Company's main products include infant incubators, infant radiant warmers, and neonatal jaundice therapy equipments.

Jiang Xi Sanxi Medtec Co., Ltd. designs and manufactures disposable and sterile medical products and devices including medical tubes and syringes.

China Isotope & Radiation Corporation develops, manufactures, distributes nuclear products. The Company provides nuclear reactors and cyclotron, radio-pharmaceuticals, radioactive sources, radiation engineering, and other related services. China Isotope & Radiation markets its products cross worldwide.

Utah Medical Products, Inc. develops, manufactures, assembles, and markets a broad range of disposable and reusable specialty medical devices. The Company's products are designed to provide better health outcomes for patients and their care-providers. Utah Medical's primary focus is healthcare for women and their babies.

INTEROJO CO LTD manufactures and markets contact lens.  The Company's main brands are Clalen, Morning-Q, Festival-II, Bandage, Multivision.

InBody Co., Ltd. manufactures and markets a body composition analyzer and other related medical instruments.  The Company supplies its products to the hospitals, clinics, fitness clubs, and households.  Biospace also exports its products to overseas markets, such as America, Europe, and Asia.

United Orthopedic Corporation manufactures orthopedic implants and precision medical devices.  The Company's products include hip replacement system, knee replacement system, as well as oncology and custom implants.  UOC also acts as an OEM (Original Equipment Manufacturer) supplier.

St.Shine Optical Co., Ltd. specializes in manufacturing cast-molding soft contact lens, including disposable and frequent replacement contact lens.  The Company also produces lathe-cutting contact lens.  St.Shine Optical markets its products under the brand name Ticon.

Value Added Technology Co., Ltd. develops, manufactures, and engages in sales of digital radiography medical equipments for dental clinics.  The Company also supplies digital sensor for X-ray equipments.

AngioDynamics, Inc. designs, develops, manufactures, and markets therapeutic and diagnostic devices.  The Company's products enable interventional physicians to treat peripheral vascular disease and other non-coronary diseases. AngioDynamic's product lines consist of angiographic catheters, hemodialysis catheters, image guided vascular access products, and thrombolytic products.

RION CO., LTD. manufactures acoustic and acoustic/vibration measuring instruments, such as hearing aids, noise meters, and seismometers.  The Company also produces medical measuring instruments as well as environmental measuring equipment.  Rion exports mainly to other countries in Asia.

Huons Co., Ltd. manufactures pharmaceutical products.  The Company produces medical drugs in the fields of nervous system, sensory organs, anti-histamines, circulatory system, respiratory system, digestive system, metabolic agents and hormones.

Bioteque Corporation manufactures and markets disposable medical products. The Company's products include hemodialysis blood line sets, AV (arteriovenous) fistula needles, IV (intravenous) infusion bags, IV infusion sets, drainage bags, precision infusion sets, surgical drainage tubes, medical catheters. medical components, and homecare items.

Acotec Scientific Holdings Limited develops medical equipment. The Company develops, manufactures and markets thrombus aspiration catheter, drug-coated ballon, and other products. Acotec Scientific Holdings markets its products throughout China.

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Acotec Scientific Holdings (6669 HK)

Acotec (6669 HK): Current Proration of 82.7%

Acotec has had a great run - the implied back-end is up 69% since my last insight. If you're still playing the arb and have yet to tender, sell...

David Blennerhassett

Acotec (6669 HK): Boston Scientific’s HK$20 Partial Offer Unconditional

Based on the current proration of 82.71% and at the last close price of HK$19.78 per share, the breakeven price is HK$19.00 per share.

Arun George

China Dongxiang (3818 HK): Extremely Deep Discount to Cash and Investments

Market rallies may have raised CNDX's cash and investment portfolio value by HK$2bn since end-Sep, but its market cap has only increased HK$500m,...

Osbert Tang, CFA

Weekly Deals Digest (08 Jan) - Acotec, Halycon, Warrego, Nitro, Norwest, VinFast

Last week, notable developments occurred in Event-Driven (Acotec, Nitro, Norwest, Warrego, Halcyon, Chip Eng Seng) and ECM (VinFast).

Arun George

Acotec (6669 HK): Boston Scientific's Partial Offer Open For Tendering

Proration will likely be higher than 71.31%. Boston Scientific views Acotec as a vehicle to strengthen its presence in China. There will be...

David Blennerhassett

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