Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

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And we have a deal!
After a false start over a year ago, PRC commercial property-play <a href="https://www.smartkarma.com/entities/soho-china-ltd" target="_blank" data-smartkarma-citation="entities:4123:1" rel="noopener">Soho China Ltd (410 HK)</a> has <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0616/2021061600985.pdf" target="_blank" rel="noopener">announced</a> a pre-conditional Offer from the Blackstone Group at $5.00/share, a 31.6% premium to last close and a 57.6% premium over the average close of the last five trading days.
The pre-cons are mainly regulatory-related - this needs clearance from SAMR under PRC Anti-Monopoly Law
The key condition to the Offer itself requires 50% of the voting rights tendered within the Offer period. Founders Pan Shiyi and his wife Zhang Xin have given an irrevocable to tender 54.93% of shares out, leaving the couple with 9%. It is not Blackstone's intention to delist the company nor avail itself to the power of compulsory acquisition.
Therefore this deal is done once SAMR signs off. The only real risk to the deal is one of timing. The fact this is not a full takeover, involves a small-ish Tier 1 property play,  and Pan Shiyi remains invested, should smooth over the application. My guess is the application will be assessed as a simplified procedure or simple case. 
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As always, there is more below the fold.
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And we have a deal!
After a false start over a year ago, PRC commercial property-play Soho China Ltd (410 HK) has announced a pre-conditional Offer from the Blackstone Group at $5.00/share, a 31.6% premium to last close and a 57.6% premium over the average close of the last five trading days.
The pre-cons are mainly regulatory-related - this needs clearance from SAMR under PRC Anti-Monopoly Law
The key condition to the Offer itself requires 50% of the voting rights tendered within the Offer period. Founders Pan Shiyi and his wife Zhang Xin have given an irrevocable to tender 54.93% of shares out, leaving the couple with 9%. It is not Blackstone's intention to delist the company nor avail itself to the power of compulsory acquisition.
Therefore this deal is done once SAMR signs off. The only real risk to the deal is one of timing. The fact this is not a full takeover, involves a small-ish Tier 1 property play,  and Pan Shiyi remains invested, should smooth over the application. My guess is the application will be assessed as a simplified procedure or simple case. 


As always, there is more below the fold.


Senior Credit Analyst, Lucror Analytics

Leonard Law, CFA

Senior Credit Analyst

High Yield Experts

Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

Credit

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.<ul><li><a href='#lucror-entity-2312'>Alam Sutera Realty</a></li><li><a href='#lucror-entity-942'>Car Inc</a></li><li><a href='#lucror-entity-18387'>CIFI Holdings</a></li><li><a href='#lucror-entity-9757'>Fantasia Holdings Group Co</a></li><li><a href='#lucror-entity-21047'>Ronshine China Holdings</a></li></ul>

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.Alam Sutera RealtyCar IncCIFI HoldingsFantasia Holdings Group CoRonshine China Holdings

Morning Views Asia: Alam Sutera Realty, Car Inc, CIFI Holdings, Fantasia Holdings Group Co

In this month’s "In-Focus" section, we provide an update on Chinese developers’ JV exposure, including typical structures and the JV exposure of the companies under our coverage. The Asia Monthly focuses on providing updates on recent events, information on new issues and spread movements, as well as summarising our top picks, and discussing specific areas of interest in the "In-Focus" section. The Asia Monthly is intended to broaden investors' understanding of the Asian USD high-yield market.

   In this month’s "In-Focus" section, we provide an update on Chinese developers’ JV exposure, including typical structures and the JV exposure of the companies under our coverage.    The Asia Monthly focuses on providing updates on recent events, information on new issues and spread movements, as well as summarising our top picks, and discussing specific areas of interest in the "In-Focus" section. The Asia Monthly is intended to broaden investors' understanding of the Asian USD high-yield market. 

Asia HY Monthly - Chinese Developers' JV Exposure - Lucror Analytics

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.<ul><li><a href='#lucror-entity-942'>Car Inc</a></li><li><a href='#lucror-entity-1909'>China Hongqiao</a></li></ul>

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.Car IncChina Hongqiao

Morning Views Asia: Car Inc, China Hongqiao

The Asia HY Trade Book for the month of May includes a summary of our recommendations, as well as our high-conviction ideas. The report also features relative-value charts and lists of the bonds in the Lucror Asia HY index.

   The Asia HY Trade Book for the month of May includes a summary of our recommendations, as well as our high-conviction ideas. The report also features relative-value charts and lists of the bonds in the Lucror Asia HY index. 

Asia HY Trade Book - May 2021 - Lucror Analytics

China

CAR Inc generates revenue primarily from car rental business and used car sales. The Company provides short-term and long-term rentals, and financial leasing services.  In addition, Car Inc offers other value-added services including accident coverage packages, GPS navigation systems, 24/7 roadside assistance, etc.

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Car Inc (699 HK)

SOHO China's (410 HK) Done & Dusted VGO

This is a very clean deal and should trade tight to terms. I think this could trade at $4.90 at the bell tomorrow, or 2.0%/9.8% annualised. There...

David Blennerhassett

Morning Views Asia: Alam Sutera Realty, Car Inc, CIFI Holdings, Fantasia Holdings Group Co

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region,...

Lucror Analytics

Asia HY Monthly - Chinese Developers' JV Exposure - Lucror Analytics

In this month’s "In-Focus" section, we provide an update on Chinese developers’ JV exposure, including typical structures and the JV exposure of...

Lucror Analytics

Morning Views Asia: Car Inc, China Hongqiao

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region,...

Lucror Analytics

Asia HY Trade Book - May 2021 - Lucror Analytics

The Asia HY Trade Book for the month of May includes a summary of our recommendations, as well as our high-conviction ideas. The report also...

Lucror Analytics

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