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.

Event-Driven

Shinko Electric Industries / Event-Driven

<ul>
<li>We summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.</li>
<li>Highest spreads: <a href="https://www.smartkarma.com/entities/apm-human-services-internation" target="_blank" data-smartkarma-citation="entities:34808:1" rel="noopener">APM Human Services Internation (APM AU)</a>, <a href="https://www.smartkarma.com/entities/probiotec-ltd" target="_blank" data-smartkarma-citation="entities:12047:1" rel="noopener">Probiotec Ltd (PBP AU)</a>, <a href="https://www.smartkarma.com/entities/genex-power-ltd" target="_blank" data-smartkarma-citation="entities:29079:1" rel="noopener">Genex Power Ltd (GNX AU)</a>, <a href="https://www.smartkarma.com/entities/china-traditional-chinese-medicine" target="_blank" data-smartkarma-citation="entities:351:1" rel="noopener">China Traditional Chinese Medicine (570 HK)</a>, <a href="https://www.smartkarma.com/entities/genetron-holdings-ltd" target="_blank" data-smartkarma-citation="entities:28435:1" rel="noopener">Genetron Holdings Ltd (GTH US)</a>. </li>
<li>Lowest spreads: <a href="https://www.smartkarma.com/entities/tietto-minerals-ltd" target="_blank" data-smartkarma-citation="entities:28006:1" rel="noopener">Tietto Minerals Ltd (TIE AU)</a>, <a href="https://www.smartkarma.com/entities/cimc-vehicles-group-co-ltd" target="_blank" data-smartkarma-citation="entities:28012:1" rel="noopener">CIMC Vehicle Group Co Ltd (1839 HK)</a>, <a href="https://www.smartkarma.com/entities/pact-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:692:1" rel="noopener">Pact Group Holdings (PGH AU)</a>, <a href="https://www.smartkarma.com/entities/cpmc-holdings-ltd" target="_blank" data-smartkarma-citation="entities:10427:1" rel="noopener">CPMC Holdings (906 HK)</a>, <a href="https://www.smartkarma.com/entities/payroll-inc" target="_blank" data-smartkarma-citation="entities:33434:1" rel="noopener">Payroll (4489 JP)</a>, <a href="https://www.smartkarma.com/entities/welbe-inc" target="_blank" data-smartkarma-citation="entities:31118:1" rel="noopener">Welbe Inc (6556 JP)</a>. </li>
</ul>


We summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
Highest spreads: APM Human Services Internation (APM AU), Probiotec Ltd (PBP AU), Genex Power Ltd (GNX AU), China Traditional Chinese Medicine (570 HK), Genetron Holdings Ltd (GTH US). 
Lowest spreads: Tietto Minerals Ltd (TIE AU), CIMC Vehicle Group Co Ltd (1839 HK), Pact Group Holdings (PGH AU), CPMC Holdings (906 HK), Payroll (4489 JP), Welbe Inc (6556 JP). 


Merger Arb Mondays (11 Mar) - Shinko, JSR, Azure, Genex, OreCorp, Hollysys, CPMC, Vinda

Equity Capital Markets

<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: <a href="https://www.smartkarma.com/entities/trial-holdings-inc" target="_blank" data-smartkarma-citation="entities:36821:1" rel="noopener">Trial Holdings (5882 JP)</a> IPO, <a href="https://www.smartkarma.com/entities/nippon-express-holdings-inc" target="_blank" data-smartkarma-citation="entities:18582:1" rel="noopener">Nippon Express Holdings (9147 JP)</a> placement and <a href="https://www.smartkarma.com/entities/arm-holdings-inc" target="_blank" data-smartkarma-citation="entities:21816:1" rel="noopener">ARM Holdings (ARM US)</a> lock-up expiry.</li>
<li>Event-Driven developments: <a href="https://www.smartkarma.com/entities/jsr-corp" target="_blank" data-smartkarma-citation="entities:17620:1" rel="noopener">JSR Corp (4185 JP)</a>, <a href="https://www.smartkarma.com/entities/alumina-ltd" target="_blank" data-smartkarma-citation="entities:939:1" rel="noopener">Alumina Ltd (AWC AU)</a>, <a href="https://www.smartkarma.com/entities/azure-minerals-ltd" target="_blank" data-smartkarma-citation="entities:16538:1" rel="noopener">Azure Minerals (AZS AU)</a>, <a href="https://www.smartkarma.com/entities/genex-power-ltd" target="_blank" data-smartkarma-citation="entities:29079:1" rel="noopener">Genex Power Ltd (GNX AU)</a>, <a href="https://www.smartkarma.com/entities/vinda-international-holdings-limited" target="_blank" data-smartkarma-citation="entities:475:1" rel="noopener">Vinda International (3331 HK)</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: Trial Holdings (5882 JP) IPO, Nippon Express Holdings (9147 JP) placement and ARM Holdings (ARM US) lock-up expiry.
Event-Driven developments: JSR Corp (4185 JP), Alumina Ltd (AWC AU), Azure Minerals (AZS AU), Genex Power Ltd (GNX AU), Vinda International (3331 HK). 


Weekly Deals Digest (10 Mar) - Trial, ARM, JSR, Nippon Express, Alumina, Azure, Genex, Vinda

<ul>
<li>I have received several questions from readers on <a href="https://www.smartkarma.com/entities/alcoa-corp" target="_blank" data-smartkarma-citation="entities:6510:1" rel="noopener">Alcoa (AA US)</a>’s non-binding proposal for <a href="https://www.smartkarma.com/entities/alumina-ltd" target="_blank" data-smartkarma-citation="entities:939:1" rel="noopener">Alumina Ltd (AWC AU)</a> in the context of the current gross spread of 9.2%. </li>
<li>The questions primarily concerned <a href="https://www.smartkarma.com/entities/citic-resources-holdings-limited" target="_blank" data-smartkarma-citation="entities:4408:1" rel="noopener">Citic Resources Holdings (1205 HK)</a> voting intentions, the probability of a bump and the likelihood of Aloca shareholders supporting the transaction. </li>
<li>CITIC Resources' lack of public endorsement of the transaction is due to HKEx listing requirements and not an indication of a NO vote risk.  </li>
</ul>


I have received several questions from readers on Alcoa (AA US)’s non-binding proposal for Alumina Ltd (AWC AU) in the context of the current gross spread of 9.2%. 
The questions primarily concerned Citic Resources Holdings (1205 HK) voting intentions, the probability of a bump and the likelihood of Aloca shareholders supporting the transaction. 
CITIC Resources' lack of public endorsement of the transaction is due to HKEx listing requirements and not an indication of a NO vote risk.  


Alumina (AWC AU): Further Thoughts on Alcoa’s Proposal

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>Pittsburgh-Based <a href="https://www.smartkarma.com/entities/alcoa-corp" target="_blank" data-smartkarma-citation="entities:6510:1" rel="noopener">Alcoa (AA US)</a> is offering 0.02854 of its own shares for each <a href="https://www.smartkarma.com/entities/alumina-ltd" target="_blank" data-smartkarma-citation="entities:939:1" rel="noopener">Alumina Ltd (AWC AU)</a> share, a 13% premium to last close. Alumina recommends the Offer to shareholders.</li>
<li>Alumina owns a 40% stake in Alcoa World Alumina &amp; Chemicals, a JV with Alcoa that operates bauxite mining, alumina refining, and aluminium smelting operations. Alcoa owns the remaining 60%.</li>
<li>Separately, Alcoa announced it has entered into an agreement with Allan Gray Australia that gives it the right to acquire up to 19.9% of Alumina. CITIC also holds 18.9%.</li>
</ul>


Pittsburgh-Based Alcoa (AA US) is offering 0.02854 of its own shares for each Alumina Ltd (AWC AU) share, a 13% premium to last close. Alumina recommends the Offer to shareholders.
Alumina owns a 40% stake in Alcoa World Alumina &amp; Chemicals, a JV with Alcoa that operates bauxite mining, alumina refining, and aluminium smelting operations. Alcoa owns the remaining 60%.
Separately, Alcoa announced it has entered into an agreement with Allan Gray Australia that gives it the right to acquire up to 19.9% of Alumina. CITIC also holds 18.9%.


<ul>
<li>
<a href="https://www.smartkarma.com/entities/alumina-ltd" target="_blank" data-smartkarma-citation="entities:939:1" rel="noopener">Alumina Ltd (AWC AU)</a>'s non-binding proposal from <a href="https://www.smartkarma.com/entities/alcoa-corp" target="_blank" data-smartkarma-citation="entities:6510:1" rel="noopener">Alcoa (AA US)</a> is 0.02854 Alcoa shares per Alumina share, implying a value of A$1.15, a 13.1% premium to the undisturbed price.</li>
<li>Alcoa has been granted a 20-business day exclusivity period. The Board intends to recommend a binding proposal. Allan Gray, the largest shareholder, is supportive. </li>
<li>While strategically sensible, the offer is not a knockout bid. The headcount test is a risk as retail forums suggest a majority view forming against the offer. </li>
</ul>



Alumina Ltd (AWC AU)'s non-binding proposal from Alcoa (AA US) is 0.02854 Alcoa shares per Alumina share, implying a value of A$1.15, a 13.1% premium to the undisturbed price.
Alcoa has been granted a 20-business day exclusivity period. The Board intends to recommend a binding proposal. Allan Gray, the largest shareholder, is supportive. 
While strategically sensible, the offer is not a knockout bid. The headcount test is a risk as retail forums suggest a majority view forming against the offer. 


Alumina (AWC AU): Alcoa’s All-Scrip Non-Binding Proposal Seems Opportunistic

Hong Kong

Hong Kong ChaoShang Group Limited operates an investment holding company. The Company, through its subsidiaries, operates vessel chartering, trading, money lending, factoring, and finance leasing business. Hong Kong ChaoShang Group provides services in Hong Kong.

China Aircraft Leasing Group Holdings Limited operates as investment holding company. The Company, through its subsidiaries, provides aircraft leasing services. China Aircraft Leasing offers its services throughout China.

China Aircraft Leasing Group Holdings (1848 HK)

APAC Resources Limited is an investment holding company. The Company is principally involved in investments in global resources companies and commodity trading. APAC has offices in Hong Kong and Shanghai.

Pizu Group Holdings Limited , through its subsidiaries,provides, develops, and distributes educational software in China. The Company also provides software services for management of power sales, power production and power plant.

CNNC International Limited participates in uranium products trading and other nuclear power generation projects.

Zhaobangji Properties Holdings Limited operates as a construction machinery trading company. The Company markets construction machinery products, drilling accessories, and other products. Zhaobangji Properties Holdings also provides local transportation services.

Greater China Financial Holdings Limited provides pawnshop, P2P online financial platform and financial leasing. The Company's primary business also includes securities trading, asset management, money lending and other types of financial services.

China Chengtong Development Group Limited, through its subsidiaries, has main business in properties investment, strategic investment in cement business, and trading in metal and chemical business in China.

China Strategic Holdings Limited, through its subsidiaries, manufactures and trades pharmaceutical, batteries, and related products.  The Company also invests in securities.

New Provenance Everlasting Holdings Limited wholesales and distributes mineral products. The Company provides metal minerals, ores, and other products. New Provenance Everlasting Holdings also provides industrial materials, public products, electrical appliances, consumer electronics, and other products.

SUMISEKI HOLDINGS, INC. is a holding company established through the reorganization of Sumitomo Coal Mining Co., Ltd.  The Company, through its subsidiaries, wholesales coal, cement, and industrial machinery. Sumiseki Holdings also operates truck and marine transportation services.

Orient Group Incorporation principally engages in planting, processing, marketing, distributing, purchasing, and selling cereals and oil in China. It is also involved in developing, mining, and processing gold, silver, and other mineral resources and the retail and sale of home building materials.

KAMEI CORPORATION is a trading company specializing in petroleum and gas products.  The Company also operates gas stations in Tohoku area (north part of Japan) and distributes alcoholic beverages, food, and construction material such as cement and concrete.

China National Complete Plant Import & Export Corp., Ltd. imports and exports industrial equipment and technologies, trades general merchandise, and invests in overseas operations.

China National Complete Import & Export (000151 CH)

Ideal United Bintang Berhad is an investment holding company which trades in heavy equipment and spare parts. The Company, through its subsidiaries, trades and leases heavy machinery.

Shinsho Corporation is a steel maker and trader.  The Company produces steel products, steel making materials, nonferrous metals, machinery, welding materials, and electronics products.

Japan Pulp and Paper Co Ltd distributes papers, paperboard, pulps, and paper-related products.  The Company also operates real estate business. Japan Pulp & Paper owns a network of overseas operations in Asia, Oceania, and the North America.

DAIICHI JITSUGYO CO., LTD. trades machinery.  The Company also trades various type of materials such as pipes, construction, plastics, fastener, and chemicals.  Daiichi Jitsugyo leases machinery and real estate.

Fujian Furi Electronics Co., Ltd. manufactures and markets computers and related parts, electronic products, communication equipment, household electrical appliances, electronic components, and laser products.  The Company is involved in import and export businesses, develops computer software, and provides technical services.

Mitsui Matsushima Co., Ltd. sells coal primarily in the Kyushu region.  The Company also produces construction machinery, cement, and building materials. Mitsui Matsushima operates supermarkets and real estate business as well.

CITIC Resources Holdings Limited, through its subsidiaries, operates the Portland Aluminum Smelter and sells aluminum finished products. The Company also imports and exports commodities. In addition, Citic Resources operates coal mining and exploration business.

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Citic Resources Holdings (1205 HK)

Merger Arb Mondays (11 Mar) - Shinko, JSR, Azure, Genex, OreCorp, Hollysys, CPMC, Vinda

This week, the highest gross spreads are APM (18.7%), Probiotec (10.9%), Genex Power (10.0%), China TCM (6.5%), Genetron (5.7%), Alumina (5.3%),...

Arun George

Weekly Deals Digest (10 Mar) - Trial, ARM, JSR, Nippon Express, Alumina, Azure, Genex, Vinda

Last week, notable developments occurred in Event-Driven (JSR, Alumina, Azure, Genex, Vinda) and ECM (ARM, Trial Holdings, Nippon Express).

Arun George

Alumina (AWC AU): Further Thoughts on Alcoa’s Proposal

Readers have asked about CITIC Resources' voting intentions, the probability of a bump, and the likelihood of Aloca shareholders supporting the...

Arun George

Alumina (AWC AU) Agrees To Alcoa's Offer

AWC is trading wide. You have Allan Gray on side, and a 50% vote at AA (for the share issuance). And terms allow CITIC to roll up its shares into a...

David Blennerhassett

Alumina (AWC AU): Alcoa’s All-Scrip Non-Binding Proposal Seems Opportunistic

While strategically sensible, the offer is not a knockout bid. The headcount test is a risk as retail forums suggest a majority view forming...

Arun George

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