Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Beijing Capital Land Ltd H / Event-Driven

<div>
<p><a href="https://www.smartkarma.com/entities/beijing-capital-land-ltd-h" target="_blank" data-smartkarma-citation="entities:4543:1" rel="noopener">Beijing Capital Land Ltd H (2868 HK)</a> (BCL) has <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0709/2021070901284.pdf" target="_blank" rel="noopener">announced</a> a pre-conditional Offer from its controlling shareholder, state-owned Beijing Capital Group, otherwise known as the Capital Group.</p>
</div>
<div>
<p>The Offer price is HK$2.80/share, a 62.79% premium to last close, and a 150% premium to the average closing price over the previous 60 trading days. The Offer price will NOT be increased. No dividends are expected to be declared. A concurrent Offer for BCL's domestic shares at RMB2.334080/share is also tabled.</p>
</div>
<div>
<p>The pre-conditions, which cannot be waived, include approvals from NDRC, MoC, and SAFE.</p>
</div>
<div>
<p>As BCL is PRC incorporated, this delisting proposal is by way of a Merger by Absorption, which involves a Scheme-like vote from disinterested shareholders. There is no tendering acceptance condition attached to this delisting.</p>
</div>
<div>
<p>This appears a relatively clean deal. The Long Stop date for the pre-cons is the 9 July 2022, although these approvals <em>should</em> be wrapped up well before then.</p>
<p>Merger by Absorption transactions <em>typically</em> complete in around four months.</p>
</div>
<div>
<p>More below the fold.</p>
</div>


Beijing Capital Land Ltd H (2868 HK) (BCL) has announced a pre-conditional Offer from its controlling shareholder, state-owned Beijing Capital Group, otherwise known as the Capital Group.


The Offer price is HK$2.80/share, a 62.79% premium to last close, and a 150% premium to the average closing price over the previous 60 trading days. The Offer price will NOT be increased. No dividends are expected to be declared. A concurrent Offer for BCL's domestic shares at RMB2.334080/share is also tabled.


The pre-conditions, which cannot be waived, include approvals from NDRC, MoC, and SAFE.


As BCL is PRC incorporated, this delisting proposal is by way of a Merger by Absorption, which involves a Scheme-like vote from disinterested shareholders. There is no tendering acceptance condition attached to this delisting.


This appears a relatively clean deal. The Long Stop date for the pre-cons is the 9 July 2022, although these approvals should be wrapped up well before then.
Merger by Absorption transactions typically complete in around four months.


More below the fold.


Beijing Capital Land (2868 HK): Delisting Offer From Parent

<div>
<p data-v-da61000a="" data-v-294dc056="">This update is the latest in a series dating back to <a href="https://skr.ma/c7hcH" target="_blank" rel="noopener">L<em>egend's Conversion of Domestic Shares</em></a> in June 2018.</p>
<p data-v-da61000a="" data-v-294dc056="">To date, 20 companies have sought approval to convert their domestic shares into H shares, which would then be eligible to be listed and traded on Hong Kong's stock exchange.</p>
<p data-v-da61000a="" data-v-294dc056="">13 companies have now been given CSRC and Hong Kong listing approval to convert such shares. Only two of those have seen any noticeable movement in the converted shares.</p>
<p data-v-da61000a="" data-v-294dc056="">In the past four months, two companies have <em>withdrawn</em> their application to convert their domestic shares, citing further improvement in the rules and regulations of the domestic capital market, among other factors.  </p>
</div>
<div>
<p data-v-da61000a="" data-v-294dc056="">As always, more below the fold. </p>
</div>


This update is the latest in a series dating back to Legend's Conversion of Domestic Shares in June 2018.
To date, 20 companies have sought approval to convert their domestic shares into H shares, which would then be eligible to be listed and traded on Hong Kong's stock exchange.
13 companies have now been given CSRC and Hong Kong listing approval to convert such shares. Only two of those have seen any noticeable movement in the converted shares.
In the past four months, two companies have withdrawn their application to convert their domestic shares, citing further improvement in the rules and regulations of the domestic capital market, among other factors.  


As always, more below the fold. 


Full Circulation Of H-Shares: January 2021 Update

<div>
<p data-v-da61000a="" data-v-294dc056="">This update is the latest in a series dating back to <em><a href="https://skr.ma/c7hcH" target="_blank" rel="noopener">Legend's Conversion of Domestic Shares</a></em> in June 2018, with the most recent addition <em><a href="https://skr.ma/kJWeU" target="_blank" rel="noopener">CPPCC And Full Circulation Of H-Shares</a></em> speculating the 2020 National People's Congress and Chinese People's Political Consultative may provide guidance on the "<em>full circulation of H shares</em>", which would allow the conversion of domestic shares into H shares, which would then be eligible to be listed and traded on Hong Kong's stock exchange.</p>
<p data-v-da61000a="" data-v-294dc056="">Since that insight, another 6 companies have been given the green light to convert and/or have submitted applications to covert.</p>
<p data-v-da61000a="" data-v-294dc056="">There has also been one noticeable movement in one of the initial pilot companies to have converted domestic shares.</p>
<p data-v-da61000a="" data-v-294dc056="">As always, more below the fold. </p>
</div>
<div></div>
<div>
<p data-v-da61000a="" data-v-294dc056=""></p>
</div>


This update is the latest in a series dating back to Legend's Conversion of Domestic Shares in June 2018, with the most recent addition CPPCC And Full Circulation Of H-Shares speculating the 2020 National People's Congress and Chinese People's Political Consultative may provide guidance on the "full circulation of H shares", which would allow the conversion of domestic shares into H shares, which would then be eligible to be listed and traded on Hong Kong's stock exchange.
Since that insight, another 6 companies have been given the green light to convert and/or have submitted applications to covert.
There has also been one noticeable movement in one of the initial pilot companies to have converted domestic shares.
As always, more below the fold. 






Full Circulation Of H-Shares - July Update

Global Special Situations & Strategy, SR Services Ltd

David Lepper

Global Special Situations & Strategy

SR Services Ltd

SR Services provides Strategic Knowledge and Solutions services for Family Offices and Corporate Business. 

We deliver this via advisory services, strategic planning, opportunity analysis/sourcing, as well as solution implementation. 

Whilst, we create intellectual discipline and operational leverage for your projects or daily activities, our ultimate objective is to empower whilst enhancing your decision making. 

Strategic Knowledge and Solutions

Equity Bottom-Up

Beijing Capital Land Ltd H / Equity Bottom-Up

<ul>
<li>
<strong>Key event:</strong> In our September update on Beijing Capital Land (BCL) <a href="https://www.smartkarma.com/insights/notes-from-the-silk-road-beijing-capital-land-2868-hk" target="_blank" data-smartkarma-citation="insights:32682" rel="noopener">Notes from the Silk Road: Beijing Capital Land (2868.HK)</a>, we noted that a confirmed date for a rights issue, accelerating fundamentals and a more defined plan should be positives for the stock. The rights issuance completed as of 22nd January 2020 release provides a key positive for the name.</li>
<li>
<strong>Now the Rights issue complete, the next chapter for the stock begins</strong>. We foresee that the company may benefit from some capital structure changes and that this may lead to an unlocking of core value for institutional and retail investors, as a result of key decisions by the parent.</li>
<li>
<strong>We examine the outcomes from the rights issuance</strong> in this note.</li>
</ul>



Key event: In our September update on Beijing Capital Land (BCL) Notes from the Silk Road: Beijing Capital Land (2868.HK), we noted that a confirmed date for a rights issue, accelerating fundamentals and a more defined plan should be positives for the stock. The rights issuance completed as of 22nd January 2020 release provides a key positive for the name.

Now the Rights issue complete, the next chapter for the stock begins. We foresee that the company may benefit from some capital structure changes and that this may lead to an unlocking of core value for institutional and retail investors, as a result of key decisions by the parent.

We examine the outcomes from the rights issuance in this note.


Notes from the Silk Road: Beijing Capital Land (2868.HK): Rights Issue Complete, Next Phase Begins

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.

Equity Capital Markets

Huijing Holdings Co Ltd / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/huijing-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:28683:1" rel="noopener">Huijing Holdings Co Ltd (9968 HK)</a> is a Chinese residential and commercial real estate developer with a focus on Guangdong Province. It has launched a Hong Kong IPO to raise net proceeds of HK$1,564 million ($200 million) at the mid-point of the price range. </p><div class="content-highlight"><p>As investors have a plethora of options to gain exposure to the China property sector, IPO hopefuls need to bring something new to the table to grab mindshare. Overall, we believe that Huijing’s fundamentals fail to excite and are average at best compared to peers.</p></div>

Huijing Holdings Co Ltd (9968 HK) is a Chinese residential and commercial real estate developer with a focus on Guangdong Province. It has launched a Hong Kong IPO to raise net proceeds of HK$1,564 million ($200 million) at the mid-point of the price range. As investors have a plethora of options to gain exposure to the China property sector, IPO hopefuls need to bring something new to the table to grab mindshare. Overall, we believe that Huijing’s fundamentals fail to excite and are average at best compared to peers.

China

Beijing Capital Land Limited develops quality/high-end office buildings and commercial properties, and medium to high-end residential properties in Beijing, China.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Beijing Capital Land Ltd H (2868 HK)

Beijing Capital Land (2868 HK): Delisting Offer From Parent

This looks done - play the spread here. Assuming payment late-Nov, I would expect BCL to trade around $2.65 on Monday, or a 5.6%/15% gross...

David Blennerhassett

Full Circulation Of H-Shares: January 2021 Update

To date, 20 companies have sought approval to convert their domestic shares into H shares, 13 of which have now been given CSRC and Hong Kong...

David Blennerhassett

Full Circulation Of H-Shares - July Update

This update is the latest in a series dating back to Legend's Conversion of Domestic Shares in June 2018, with the most recent addition CPPCC And...

David Blennerhassett

Notes from the Silk Road: Beijing Capital Land (2868.HK): Rights Issue Complete, Next Phase Begins

Key event: In our September update on Beijing Capital Land (BCL) Notes from the Silk Road: Beijing Capital Land (2868.HK), we noted that a...

David Lepper

Huijing Holdings IPO Initiation: Ho-Hum

Huijing Holdings Co Ltd (9968 HK) is a Chinese residential and commercial real estate developer with a focus on Guangdong Province. It has launched...

Arun George

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)