Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

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Back on the 8 April, <a href="https://www.smartkarma.com/entities/metlifecare-ltd" target="_blank" data-smartkarma-citation="entities:19219:1" rel="noopener">Metlifecare Ltd (MET NZ)</a>  <a href="http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/MET/351464/320564.pdf" target="_blank" rel="noopener">announced</a> it had received notice of an intention to terminate its SIA with APVG/EQT.
APVG/EQT argued that COVID-19 would "reasonably likely to reduce the consolidated underlying net profit (as described in the MAC clause) of Metlifecare by at least 10% in FY20", triggering the MAC.
Metlifecare responded that it was seeking legal advice on the termination, and asserted the MAC trigger was without substance.
Further NZX announcements have been released by Metlifecare as it lawyered up, with a High Court date set (<a href="https://www.nzx.com/announcements/352813" target="_blank" rel="noopener">28 May</a>) for considering its application for initial orders to call a meeting of shareholders to vote on the scheme plan contemplated by the SIA.
Justice Graham Lang (presiding) may allow the dispatch of Scheme documents and the meeting to go ahead. It is possible for EQT to appeal but an appeal is not an automatic stay – that is, the Scheme process can continue throughout an appeal process until a judge issues a stop order.
Currently trading 9% below its undisturbed price (20 Nov 2019), but 24% up from its 8 April low, when I last wrote on the company (<a href="https://skr.ma/R6uin" target="_blank" rel="noopener">Metlifecare's Options As EQT Walks</a>), recommending a buy. There would be ~61% upside to the NZ$7/share Offer price.
I think MET has a strong chance the Scheme Meeting goes ahead.  That would not guarantee the deal goes through, but I would be long here. 
As always, more thoughts below the line.
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Back on the 8 April, Metlifecare Ltd (MET NZ)  announced it had received notice of an intention to terminate its SIA with APVG/EQT.
APVG/EQT argued that COVID-19 would "reasonably likely to reduce the consolidated underlying net profit (as described in the MAC clause) of Metlifecare by at least 10% in FY20", triggering the MAC.
Metlifecare responded that it was seeking legal advice on the termination, and asserted the MAC trigger was without substance.
Further NZX announcements have been released by Metlifecare as it lawyered up, with a High Court date set (28 May) for considering its application for initial orders to call a meeting of shareholders to vote on the scheme plan contemplated by the SIA.
Justice Graham Lang (presiding) may allow the dispatch of Scheme documents and the meeting to go ahead. It is possible for EQT to appeal but an appeal is not an automatic stay – that is, the Scheme process can continue throughout an appeal process until a judge issues a stop order.
Currently trading 9% below its undisturbed price (20 Nov 2019), but 24% up from its 8 April low, when I last wrote on the company (Metlifecare's Options As EQT Walks), recommending a buy. There would be ~61% upside to the NZ$7/share Offer price.
I think MET has a strong chance the Scheme Meeting goes ahead.  That would not guarantee the deal goes through, but I would be long here. 
As always, more thoughts below the line.





APAC IPOs & Placements

Zhen Zhou, Toh

Smartkarma

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Equity Capital Markets

Prospa Advance Pty / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/26741" target="_blank" data-smartkarma-citation="entities:26741:1">Prospa (1030895D AU)</a> is looking to raise about US$100m in its upcoming IPO. Proceeds raised from the IPO will be used to fund Prospa's investment in the equity portion of the loan book in the warehouse securitization and ABS issuance funding platform and to repay selling shareholders.In this insight, we will explain the company's business model, look at the online lending industry, review potential regulatory pitfalls and compare the company to other lending peers. As usual, we will also run the deal through our ECM framework.

Prospa (1030895D AU) is looking to raise about US$100m in its upcoming IPO. Proceeds raised from the IPO will be used to fund Prospa's investment in the equity portion of the loan book in the warehouse securitization and ABS issuance funding platform and to repay selling shareholders.In this insight, we will explain the company's business model, look at the online lending industry, review potential regulatory pitfalls and compare the company to other lending peers. As usual, we will also run the deal through our ECM framework.

Prospa IPO Review - Fintech Company Doesn't Always Mean Better Profitability

Australia

Earlypay Ltd provides commercial financing services. The Company offers credit solutions and accounts receivable financing services. Earlypay serves customers in Australia.

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Earlypay (EPY AU)

Metlifecare: Down But Not Out - Get Long

Back on the 8 April, Metlifecare Ltd (MET NZ) announced it had received notice of an intention to terminate its SIA with APVG/EQT. APVG/EQT...

David Blennerhassett

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Prospa (1030895D AU) is looking to raise about US$100m in its upcoming IPO. Proceeds raised from the IPO will be used to fund Prospa's investment...

Zhen Zhou, Toh

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