Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

China Boqi Environmental Hol / Event-Driven

<ul>
<li>Back on the 23rd October,  flue gas treatment play <a href="https://www.smartkarma.com/entities/china-boqi-environmental-hol" target="_blank" data-smartkarma-citation="entities:26771:1" rel="noopener">China Boqi Environmental Hol (2377 HK)</a> announced a buyback of 15% of shares out, at HK$1.20/share, a 16.5% premium to undisturbed.</li>
<li>The upshot of the buyback lifts the stake of co-founder Zeng Zhijun and concert parties  to 32.59% - up from 27.71% - before options. A whitewash waiver is required.</li>
<li>A expected, the Offer Doc has now been <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/1113/2024111300968.pdf" target="_blank" rel="noopener">delayed</a>. It is now expected to be dispatched on or before the 29th November. </li>
</ul>


Back on the 23rd October,  flue gas treatment play China Boqi Environmental Hol (2377 HK) announced a buyback of 15% of shares out, at HK$1.20/share, a 16.5% premium to undisturbed.
The upshot of the buyback lifts the stake of co-founder Zeng Zhijun and concert parties  to 32.59% - up from 27.71% - before options. A whitewash waiver is required.
A expected, the Offer Doc has now been delayed. It is now expected to be dispatched on or before the 29th November. 


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/china-boqi-environmental-hol" target="_blank" data-smartkarma-citation="entities:26771:1" rel="noopener">China Boqi Environmental Hol (2377 HK)</a>'s share buyback is for a minimum of 100.6m shares (10.00% of outstanding shares) and a maximum of 150.9m shares (15.00%) at HK$1.20 per share.</li>
<li>The offer is conditional on satisfying the minimum acceptance condition, approval by the requisite majority of shareholders, and approval of the whitewash waiver. </li>
<li>The offer is attractive compared to peer multiples but unattractive compared to historical trading ranges. The shareholder structure and irrevocable paves the way for the offer to be declared unconditional. </li>
</ul>



China Boqi Environmental Hol (2377 HK)'s share buyback is for a minimum of 100.6m shares (10.00% of outstanding shares) and a maximum of 150.9m shares (15.00%) at HK$1.20 per share.
The offer is conditional on satisfying the minimum acceptance condition, approval by the requisite majority of shareholders, and approval of the whitewash waiver. 
The offer is attractive compared to peer multiples but unattractive compared to historical trading ranges. The shareholder structure and irrevocable paves the way for the offer to be declared unconditional. 


Boqi Environmental (2377 HK): Conditional Share Buyback at HK$1.20

<ul>
<li>
<a href="https://www.smartkarma.com/entities/china-boqi-environmental-hol" target="_blank" data-smartkarma-citation="entities:26771:1" rel="noopener">China Boqi Environmental Hol (2377 HK)</a>, a flue gas treatment play in China, is suspended pursuant to the Takeovers Code.</li>
<li>Co-Founders Zeng Zhijun (27.71%, chairman) and Richard Cheng (16.76%, NED) collectively hold 44.47%. However, they had a falling out in January 2021, and probably won't jointly bid. Individually, maybe.</li>
<li>
<a href="https://www.smartkarma.com/entities/china-petroleum-chemical-h" target="_blank" data-smartkarma-citation="entities:369:1" rel="noopener">China Petroleum &amp; Chemical (386 HK)</a> (a.k.a. Sinopec) holds 10.97% and could make a move to secure control.</li>
</ul>



China Boqi Environmental Hol (2377 HK), a flue gas treatment play in China, is suspended pursuant to the Takeovers Code.
Co-Founders Zeng Zhijun (27.71%, chairman) and Richard Cheng (16.76%, NED) collectively hold 44.47%. However, they had a falling out in January 2021, and probably won't jointly bid. Individually, maybe.

China Petroleum &amp; Chemical (386 HK) (a.k.a. Sinopec) holds 10.97% and could make a move to secure control.


Boqi Env (2377 HK): MBO; Or Sinopec Offer?

<ul>
<li>
<a href="https://www.smartkarma.com/entities/china-boqi-environmental-hol" target="_blank" data-smartkarma-citation="entities:26771:1" rel="noopener">China Boqi Environmental Hol (2377 HK)</a> entered a trading halt based on the Hong Kong Code on Takeovers and Mergers. The shares have been up 39% since 30 September. </li>
<li>It is likely that management, representing 59.59% of outstanding shares, is seeking to privatise Boqi through a Cayman scheme. </li>
<li>Sinopec, a pre-IPO investor potentially holding a blocking stake, is likely seeking to exit. At the last close, Boqi trades in line with the median peers’ P/B multiple. </li>
</ul>



China Boqi Environmental Hol (2377 HK) entered a trading halt based on the Hong Kong Code on Takeovers and Mergers. The shares have been up 39% since 30 September. 
It is likely that management, representing 59.59% of outstanding shares, is seeking to privatise Boqi through a Cayman scheme. 
Sinopec, a pre-IPO investor potentially holding a blocking stake, is likely seeking to exit. At the last close, Boqi trades in line with the median peers’ P/B multiple. 


Boqi Environmental (2377 HK): Privatisation by Management?

<ul>
<li>There are people who'll take profit in <a href="https://www.smartkarma.com/entities/seven-i-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:1041:1" rel="noopener">Seven &amp; I (3382 JP)</a> because of path dependency til year-end. It will drag out a while: buy the dips, trim on pops.</li>
<li>Just like in <a href="https://www.smartkarma.com/entities/lufax-holding-ltd-b751749a-8feb-4b4d-85a7-d99ac0308fe7" target="_blank" data-smartkarma-citation="entities:40067:1" rel="noopener">Lufax Holding (6623 HK)</a>'s special dividend, expect Ping An to boost its holding in <a href="https://www.smartkarma.com/entities/ping-an-healthcare-and-technology-company-limited" target="_blank" data-smartkarma-citation="entities:27008:1" rel="noopener">Ping An Healthcare and Technology (1833 HK)</a> via the stealthy scrip dividend option. </li>
<li>The landscape for <a href="https://www.smartkarma.com/entities/nec-networks-system-integr" target="_blank" data-smartkarma-citation="entities:16396:1" rel="noopener">Nec Networks &amp; System Integr (1973 JP)</a> has FULLY changed. The details now matter quite a bit. NEC has two basic choices. Neither are that palatable.  </li>
</ul>


There are people who'll take profit in Seven &amp; I (3382 JP) because of path dependency til year-end. It will drag out a while: buy the dips, trim on pops.
Just like in Lufax Holding (6623 HK)'s special dividend, expect Ping An to boost its holding in Ping An Healthcare and Technology (1833 HK) via the stealthy scrip dividend option. 
The landscape for Nec Networks &amp; System Integr (1973 JP) has FULLY changed. The details now matter quite a bit. NEC has two basic choices. Neither are that palatable.  


Last Week in Event SPACE: Seven & I, PA Gooddoctor, Nec Networks, Genscript/Legend, ASM PT, Hanwha

Hong Kong

China Boqi Environmental (Holding) Co., Ltd. offers waste management services. The Company provides flue gas desulfurization, solid waste disposal, water pollution treatment, and environmental protection services. China Boqi Environmental also offers clean energy products development services. China Boqi Environmental serves clients in China.

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China Boqi Environmental Hol (2377 HK)

Boqi Env (2377 HK)'s Partial Offer

If ~45% of the public shareholders tender, expect a min pro-ration of 32%, or a back-end breakeven price is HK$0.79/share, around the undisturbed...

David Blennerhassett

Boqi Env (2377 HK): MBO; Or Sinopec Offer?

I think Zeng (chairman) makes an Offer. Sinopec could make an Offer. But it has been content to largely be a passive investor for over six years.

David Blennerhassett

Boqi Environmental (2377 HK): Privatisation by Management?

Shares have been up 39% since 30 September, likely due to deal news leakage. Management, representing 60% of outstanding shares, is likely seeking...

Arun George

Last Week in Event SPACE: Seven & I, PA Gooddoctor, Nec Networks, Genscript/Legend, ASM PT, Hanwha

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Boqi Env (2377 HK)'s Partial Offer

If ~45% of the public shareholders tender, expect a min pro-ration of 32%, or a back-end breakeven price is HK$0.79/share, around the undisturbed...

David Blennerhassett

Boqi Environmental (2377 HK): Conditional Share Buyback at HK$1.20

The offer is attractive vs. peer multiples but unattractive vs. historical trading ranges. The shareholder structure and irrevocable paves the way...

Arun George

Boqi Env (2377 HK): MBO; Or Sinopec Offer?

I think Zeng (chairman) makes an Offer. Sinopec could make an Offer. But it has been content to largely be a passive investor for over six years.

David Blennerhassett

Boqi Environmental (2377 HK): Privatisation by Management?

Shares have been up 39% since 30 September, likely due to deal news leakage. Management, representing 60% of outstanding shares, is likely seeking...

Arun George

Last Week in Event SPACE: Seven & I, PA Gooddoctor, Nec Networks, Genscript/Legend, ASM PT, Hanwha

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett