HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Event-Driven

<ul>
<li>Acquiring CPMC at low price is in line with Baosteel's strategic goals and the new assessment indicators of Baowu Group. This explains why Baosteel didn't choose to raise its Offer </li>
<li>ORG intends to acquire 100% equity of CPMC. This means state-owned capital needs to withdraw completely from CPMC. So, would China Foods/COFCO (both SOEs) agree to be acquired by ORG?</li>
<li>If ORG is “forced to” acquire CPMC due to Baosteel's low Offer Price, will ORG change mind and choose to withdraw midway?Such “potential unwillingness” from ORG makes the deal “tricky”.</li>
</ul>


Acquiring CPMC at low price is in line with Baosteel's strategic goals and the new assessment indicators of Baowu Group. This explains why Baosteel didn't choose to raise its Offer 
ORG intends to acquire 100% equity of CPMC. This means state-owned capital needs to withdraw completely from CPMC. So, would China Foods/COFCO (both SOEs) agree to be acquired by ORG?
If ORG is “forced to” acquire CPMC due to Baosteel's low Offer Price, will ORG change mind and choose to withdraw midway?Such “potential unwillingness” from ORG makes the deal “tricky”.


CPMC Holdings (906.HK) Privatization Update - Will ORG Withdraw Midway?

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>
<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> has <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/1024/2024102401219.pdf" target="_blank" rel="noopener">announced</a> that the Shenzhen Stock Exchange has no further comment on <a href="https://www.smartkarma.com/entities/org-technology-co-ltd-a" target="_blank" data-smartkarma-citation="entities:17510:1" rel="noopener">ORG Technology (002701 CH)</a>'s MAR report, and therefore that specific pre=condition has been fulfilled. </li>
<li>ORG will now hold an general meeting on the 11th November for shareholders to vote on the Offer for CPMC - this should be a two-thirds majority vote. </li>
<li>The pre-cons long stop date is the 6th January. Should all go to plan, you could be looking at late Janaury 2025 payment.</li>
</ul>



CPMC Holdings (906 HK) has announced that the Shenzhen Stock Exchange has no further comment on ORG Technology (002701 CH)'s MAR report, and therefore that specific pre=condition has been fulfilled. 
ORG will now hold an general meeting on the 11th November for shareholders to vote on the Offer for CPMC - this should be a two-thirds majority vote. 
The pre-cons long stop date is the 6th January. Should all go to plan, you could be looking at late Janaury 2025 payment.


CPMC (906 HK): ORG Ticks Off Another Pre-Con

<ul>
<li>At the first close , SASAC/NCSSF-backed Champion Holdings <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0903/2024090302069.pdf" target="_blank" rel="noopener">failed to secure the 50% acceptance condition</a>. No surprises there. What was a surprise was Champion Holdings letting the Offer <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0903/2024090302069.pdf" target="_blank" rel="noopener">lapse</a>. </li>
<li>Champion Holdings could have extended the Offer to the 30th Sept, which would have achieved little. But they could have bumped terms. They did neither.</li>
<li>That leaves <a href="https://www.smartkarma.com/entities/org-technology-co-ltd-a" target="_blank" data-smartkarma-citation="entities:17510:1" rel="noopener">ORG Technology Co., Ltd. A (002701 CH)</a> as the sole bidder for <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> . And arguably, an unwilling bidder at that. </li>
</ul>


At the first close , SASAC/NCSSF-backed Champion Holdings failed to secure the 50% acceptance condition. No surprises there. What was a surprise was Champion Holdings letting the Offer lapse. 
Champion Holdings could have extended the Offer to the 30th Sept, which would have achieved little. But they could have bumped terms. They did neither.
That leaves ORG Technology Co., Ltd. A (002701 CH) as the sole bidder for CPMC Holdings (906 HK) . And arguably, an unwilling bidder at that. 


<ul>
<li>Huarui Offer has been approved by SAMR, which marks a solid step forward.Meanwhile, ORG’s management stated that the reduction of Huangshan Novel shares is to raise funds to acquire CPMC.</li>
<li>While Baosteel may want to “test the waters”, the signals ORG is sending is it will make every effort to advance the acquisition of CPMC and is accelerating the process. </li>
<li>The return on Huarui Offer isn't attractive.We recommend waiting for Baosteel to raise its Offer, or simply choosing to add more positions in China TCM, whose privatization is more lucrative.</li>
</ul>


Huarui Offer has been approved by SAMR, which marks a solid step forward.Meanwhile, ORG’s management stated that the reduction of Huangshan Novel shares is to raise funds to acquire CPMC.
While Baosteel may want to “test the waters”, the signals ORG is sending is it will make every effort to advance the acquisition of CPMC and is accelerating the process. 
The return on Huarui Offer isn't attractive.We recommend waiting for Baosteel to raise its Offer, or simply choosing to add more positions in China TCM, whose privatization is more lucrative.


CPMC Holdings (906.HK) Privatization Update - ORG Is Pushing Baosteel to Raise Its Offer

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/org-technology-co-ltd-a" target="_blank" data-smartkarma-citation="entities:17510:1" rel="noopener">ORG Technology Co., Ltd. A (002701 CH)</a> has received SAMR clearance, the key regulatory hurdle, for its HK$7.21 voluntary offer for <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>.</li>
<li>SAMR approval paves the way for the ORG precondition to be satisfied in September. Changping Industrial’s HK$6.87 offer first close is on 3 September.</li>
<li>Changping Industrial has little choice but to revise its terms. It has a short window to seize the initiative by bumping its offer before ORG’s competing and higher offer opens. </li>
</ul>



ORG Technology Co., Ltd. A (002701 CH) has received SAMR clearance, the key regulatory hurdle, for its HK$7.21 voluntary offer for CPMC Holdings (906 HK).
SAMR approval paves the way for the ORG precondition to be satisfied in September. Changping Industrial’s HK$6.87 offer first close is on 3 September.
Changping Industrial has little choice but to revise its terms. It has a short window to seize the initiative by bumping its offer before ORG’s competing and higher offer opens. 


CPMC Holdings (906 HK): The Battle Is Heating up as ORG Clears a Key Regulatory Hurdle

China

CPMC Holdings Ltd. manufactures food packaging products.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

CPMC Holdings (906 HK)