IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

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Event-Driven

Shandong Hi-Speed New Energy G / Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shandong-hi-speed-new-energy-g" target="_blank" data-smartkarma-citation="entities:6927:1" rel="noopener">Shandong Hi-Speed New Energy G (1250 HK)</a> disclosed a possible mandatory unconditional offer from <a href="https://www.smartkarma.com/entities/shandong-hi-speed-holdings-gro" target="_blank" data-smartkarma-citation="entities:10356:1" rel="noopener">Shandong Hi-Speed Holdings Gro (412 HK)</a> at HK$1.78, a 7.2% premium to the undisturbed price.</li>
<li>The offer is conditional on SDHS completing a sale and purchase agreement (SPA) to acquire CITIC Securities' entire 13.52% stake at HK$1.78 per share.</li>
<li>The key precondition of the SPA is SDHS shareholder approval of an ordinary resolution relating to the SPA and the possible offer. The vote is a formality. </li>
</ul>



Shandong Hi-Speed New Energy G (1250 HK) disclosed a possible mandatory unconditional offer from Shandong Hi-Speed Holdings Gro (412 HK) at HK$1.78, a 7.2% premium to the undisturbed price.
The offer is conditional on SDHS completing a sale and purchase agreement (SPA) to acquire CITIC Securities' entire 13.52% stake at HK$1.78 per share.
The key precondition of the SPA is SDHS shareholder approval of an ordinary resolution relating to the SPA and the possible offer. The vote is a formality. 


Shandong Hi-Speed New Energy (1250 HK): Shandong Hi-Speed Holdings (412 HK) Possible MGO

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>Not a delisting Offer, but a <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/1127/2024112700199.pdf" target="_blank" rel="noopener">possible mandatory unconditional Offer</a> from <a href="https://www.smartkarma.com/entities/shandong-hi-speed-holdings-gro" target="_blank" data-smartkarma-citation="entities:10356:1" rel="noopener">Shandong Hi-Speed Holdings (412 HK)</a> (SDHG) at HK$1.78/share, a premium of 7.23% to last close. </li>
<li>SDHG, with 43.45%, has entered into an SPA with two <a href="https://www.smartkarma.com/entities/citic-securities-h" target="_blank" data-smartkarma-citation="entities:463:1" rel="noopener">Citic Securities (H) (6030 HK)</a>-backed funds holding 13.52%, the completion of which lifts SDHG's take to 56.97%, triggering an MGO. </li>
<li>Conditions to the SPA are straightforward. Expect <a href="https://www.smartkarma.com/entities/shandong-hi-speed-new-energy-g" target="_blank" data-smartkarma-citation="entities:6927:1" rel="noopener">Shandong Hi-Speed New Energy G (1250 HK)</a> to trade tight, if not through terms. </li>
</ul>


Not a delisting Offer, but a possible mandatory unconditional Offer from Shandong Hi-Speed Holdings (412 HK) (SDHG) at HK$1.78/share, a premium of 7.23% to last close. 
SDHG, with 43.45%, has entered into an SPA with two Citic Securities (H) (6030 HK)-backed funds holding 13.52%, the completion of which lifts SDHG's take to 56.97%, triggering an MGO. 
Conditions to the SPA are straightforward. Expect Shandong Hi-Speed New Energy G (1250 HK) to trade tight, if not through terms. 


Shandong Hi-Speed New Energy (1250 HK): Possible MGO At HK$1.78/Share.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shandong-hi-speed-new-energy-g" target="_blank" data-smartkarma-citation="entities:6927:1" rel="noopener">Shandong Hi-Speed New Energy G (1250 HK)</a> entered a trading halt based on the Takeovers and Mergers Code. <a href="https://www.smartkarma.com/entities/shandong-hi-speed-holdings-gro" target="_blank" data-smartkarma-citation="entities:10356:1" rel="noopener">Shandong Hi-Speed Holdings Gro (412 HK)</a> also entered a trading halt. </li>
<li>It is likely that SDHS Group, representing 43.45% of outstanding shares, is seeking to privatise SDHS New Energy through a Cayman scheme. </li>
<li>Beijing Enterprises Group and CITIC Securities hold potentially blocking stakes and are likely seeking to exit. Our best guess is an offer with a 20%- 30% takeover premium.  </li>
</ul>



Shandong Hi-Speed New Energy G (1250 HK) entered a trading halt based on the Takeovers and Mergers Code. Shandong Hi-Speed Holdings Gro (412 HK) also entered a trading halt. 
It is likely that SDHS Group, representing 43.45% of outstanding shares, is seeking to privatise SDHS New Energy through a Cayman scheme. 
Beijing Enterprises Group and CITIC Securities hold potentially blocking stakes and are likely seeking to exit. Our best guess is an offer with a 20%- 30% takeover premium.  


Shandong Hi-Speed New Energy (1250 HK): Privatisation by Shandong Hi-Speed Holdings (412 HK)?

<ul>
<li>In March 2022, in what was viewed as a bail out, <a href="https://www.smartkarma.com/entities/shandong-hi-speed-new-energy-g" target="_blank" data-smartkarma-citation="entities:6927:1" rel="noopener">Shandong Hi-Speed New Energy (1250 HK)</a> issued shares, equivalent to 43.45% on a diluted basis, to <a href="https://www.smartkarma.com/entities/shandong-hi-speed-holdings-gro" target="_blank" data-smartkarma-citation="entities:10356:1" rel="noopener">Shandong Hi-Speed 412 HK)</a>
</li>
<li>Shandong Hi-Speed was not obliged to launch a mandatory offer after securing a whitewash waiver. Two hand half years later, Shandong Hi-Speed still holds 43.45%. </li>
<li>SDHS New Energy is now suspended pursuant to the Takeovers Code. Shandong Hi-Speed is also suspended. Expect a take-private bid from Shandong Hi-Speed.</li>
</ul>


In March 2022, in what was viewed as a bail out, Shandong Hi-Speed New Energy (1250 HK) issued shares, equivalent to 43.45% on a diluted basis, to Shandong Hi-Speed 412 HK)

Shandong Hi-Speed was not obliged to launch a mandatory offer after securing a whitewash waiver. Two hand half years later, Shandong Hi-Speed still holds 43.45%. 
SDHS New Energy is now suspended pursuant to the Takeovers Code. Shandong Hi-Speed is also suspended. Expect a take-private bid from Shandong Hi-Speed.


Shandong Hi-Speed New Energy (1250 HK): Expect A Delisting Offer

<ul>
<li>After <a href="https://www.smartkarma.com/entities/shanghai-henlius-biotech-inc" target="_blank" data-smartkarma-citation="entities:27888:1" rel="noopener">Shanghai Henlius Biotech (2696 HK)</a> secured NDRC approval on the 22nd Nov; fulfilled pre-cons on the 16th December, the Circular was dispatched last night, the 22nd December. </li>
<li>The EGM/H-share class meeting will take place on the 22nd January, one day past my estimate. Settlement should be on ore around the 18th Feb, a week beyond my estimate. </li>
<li>Trading at a gross/annualised spread off 2.9%/20.3%. Still attractive here.</li>
</ul>


After Shanghai Henlius Biotech (2696 HK) secured NDRC approval on the 22nd Nov; fulfilled pre-cons on the 16th December, the Circular was dispatched last night, the 22nd December. 
The EGM/H-share class meeting will take place on the 22nd January, one day past my estimate. Settlement should be on ore around the 18th Feb, a week beyond my estimate. 
Trading at a gross/annualised spread off 2.9%/20.3%. Still attractive here.


Henlius (2696 HK): Circ Out. 22nd Jan H-Class Meeting

China

Shandong Hi-Speed New Energy provides renewable energy services. The Company operates photovoltaic power and wind power businesses. Shandong Hi-Speed New Energy also involves in energy storage, micro-grid network, electricity sales, geothermal power generation, regional energy systems, and other new energy fields.

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Shandong Hi-Speed New Energy G (1250 HK)

Shandong Hi-Speed New Energy (1250 HK): Shandong Hi-Speed Holdings (412 HK) Possible MGO

The key precondition of the SPA is SDHS shareholder approval of an ordinary resolution relating to the SPA and the possible offer. The vote is a...

Arun George

Shandong Hi-Speed New Energy (1250 HK): Privatisation by Shandong Hi-Speed Holdings (412 HK)?

It is likely that SDHS Group, representing 43.45% of outstanding shares, is seeking to privatise SDHS New Energy through a Cayman scheme.

Arun George

Shandong Hi-Speed New Energy (1250 HK): Expect A Delisting Offer

If an Offer, I'll defer to the average Offer premium of ~37% in HK over the past five. That backs out a possible price of HK$2.30/share, or ~13.5x...

David Blennerhassett

Henlius (2696 HK): Circ Out. 22nd Jan H-Class Meeting

Currently at a 2.9% gross spread with expected payment around the third week of Feb. I'd pay up to HK$24.10/share for a 15% annualised spread.

David Blennerhassett

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52-week Range

Market Cap (USDm)

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Shandong Hi-Speed New Energy (1250 HK): Shandong Hi-Speed Holdings (412 HK) Possible MGO

The key precondition of the SPA is SDHS shareholder approval of an ordinary resolution relating to the SPA and the possible offer. The vote is a...

Arun George

Shandong Hi-Speed New Energy (1250 HK): Possible MGO At HK$1.78/Share.

Not the delisting Offer I was expecting. Assuming around mid-Feb payment, I'd pay up to HK$1.73/share. This may trade through terms; but I don't...

David Blennerhassett

Shandong Hi-Speed New Energy (1250 HK): Privatisation by Shandong Hi-Speed Holdings (412 HK)?

It is likely that SDHS Group, representing 43.45% of outstanding shares, is seeking to privatise SDHS New Energy through a Cayman scheme.

Arun George

Shandong Hi-Speed New Energy (1250 HK): Expect A Delisting Offer

If an Offer, I'll defer to the average Offer premium of ~37% in HK over the past five. That backs out a possible price of HK$2.30/share, or ~13.5x...

David Blennerhassett

Henlius (2696 HK): Circ Out. 22nd Jan H-Class Meeting

Currently at a 2.9% gross spread with expected payment around the third week of Feb. I'd pay up to HK$24.10/share for a 15% annualised spread.

David Blennerhassett