IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

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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

Langham Hospitality Inv Ss / Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/langham-hospitality-inv-ss" target="_blank" data-smartkarma-citation="entities:760:1" rel="noopener">Langham Hospitality Inv Ss (1270 HK)</a> received a notice from <a href="https://www.smartkarma.com/entities/great-eagle-holdings-ltd" target="_blank" data-smartkarma-citation="entities:758:1" rel="noopener">Great Eagle Holdings (41 HK)</a>, the largest unitholder, that it intends to present a detailed proposal for scheme privatisation.</li>
<li>The privatisation interest is unsurprising, as the unit price has declined by 43% over the last twelve months. A tough 2023 did not help the declining sentiment.</li>
<li>Our methodology for triangulating the potential offer price results in a range of HK$0.63-1.76. Our best guess is an offer of around HK$0.85, a 47% premium to the last close.</li>
</ul>



Langham Hospitality Inv Ss (1270 HK) received a notice from Great Eagle Holdings (41 HK), the largest unitholder, that it intends to present a detailed proposal for scheme privatisation.
The privatisation interest is unsurprising, as the unit price has declined by 43% over the last twelve months. A tough 2023 did not help the declining sentiment.
Our methodology for triangulating the potential offer price results in a range of HK$0.63-1.76. Our best guess is an offer of around HK$0.85, a 47% premium to the last close.


Langham Hospitality Investments (1270 HK): Great Eagle (41 HK)’s Possible Scheme Privatisation

<ul>
<li>
<a href="https://www.smartkarma.com/entities/beijing-capital-grand-ltd" target="_blank" data-smartkarma-citation="entities:18241:1" rel="noopener">Beijing Capital Grand (1329 HK)</a>’s IFA opines that <a href="https://www.smartkarma.com/entities/beijing-capital-land-ltd-h" target="_blank" data-smartkarma-citation="entities:4543:1" rel="noopener">Beijing Capital Land Ltd H (2868 HK)</a>’s HK$0.85 privatisation offer is fair and reasonable. The vote is on 10 January. </li>
<li>Key conditions include approval by at least 75% of independent shareholders (&lt;10% of independent shareholders rejection). The offer price is final.</li>
<li>The <a href="https://www.smartkarma.com/entities/sino-ocean-group-holding-limited" target="_blank" rel="noopener">Sino-Ocean Group (3377 HK)</a> receivers, which hold a blocking stake, should support the transaction. At the last close and for the 6 February payment, the gross/annualised spread was 3.7%/22.2%.</li>
</ul>



Beijing Capital Grand (1329 HK)’s IFA opines that Beijing Capital Land Ltd H (2868 HK)’s HK$0.85 privatisation offer is fair and reasonable. The vote is on 10 January. 
Key conditions include approval by at least 75% of independent shareholders (&lt;10% of independent shareholders rejection). The offer price is final.
The Sino-Ocean Group (3377 HK) receivers, which hold a blocking stake, should support the transaction. At the last close and for the 6 February payment, the gross/annualised spread was 3.7%/22.2%.


Beijing Capital Grand (1329 HK): Scheme Vote on 10 January

<ul>
<li>
<a href="https://www.smartkarma.com/entities/beijing-capital-grand-ltd" target="_blank" data-smartkarma-citation="entities:18241:1" rel="noopener">Beijing Capital Grand (1329 HK)</a> disclosed a Cayman scheme privatisation offer from <a href="https://www.smartkarma.com/entities/beijing-capital-land-ltd-h" target="_blank" data-smartkarma-citation="entities:4543:1" rel="noopener">Beijing Capital Land Ltd H (2868 HK)</a> at HK$0.85 per share, a 46.6% premium to the undisturbed price. </li>
<li>The key condition will be approval by at least 75% of disinterested shareholders (&lt;10% of all disinterested shareholders rejection). The offer price is final.</li>
<li>The <a href="https://www.smartkarma.com/entities/sino-ocean-group-holding-limited" target="_blank" rel="noopener">Sino-Ocean Group (3377 HK)</a> receivers, which hold a blocking stake, will support a liquidity event to exit, particularly as the offer is reasonable compared to historical trading ranges.  </li>
</ul>



Beijing Capital Grand (1329 HK) disclosed a Cayman scheme privatisation offer from Beijing Capital Land Ltd H (2868 HK) at HK$0.85 per share, a 46.6% premium to the undisturbed price. 
The key condition will be approval by at least 75% of disinterested shareholders (&lt;10% of all disinterested shareholders rejection). The offer price is final.
The Sino-Ocean Group (3377 HK) receivers, which hold a blocking stake, will support a liquidity event to exit, particularly as the offer is reasonable compared to historical trading ranges.  


Beijing Capital Grand (1329 HK): Capital Group’s Scheme Privatisation at HK$0.85

<ul>
<li>
<a href="https://www.smartkarma.com/entities/beijing-capital-grand-ltd" target="_blank" data-smartkarma-citation="entities:18241:1" rel="noopener">Beijing Capital Grand (1329 HK)</a> entered a trading halt based on the Hong Kong Code on Takeovers and Mergers. </li>
<li>It is likely that <a href="https://www.smartkarma.com/entities/beijing-capital-land-ltd-h" target="_blank" data-smartkarma-citation="entities:4543:1" rel="noopener">Beijing Capital Land Ltd H (2868 HK)</a>, the largest shareholder, is launching an offer primarily to acquire the stake from <a href="https://www.smartkarma.com/entities/sino-ocean-group-holding-limited" target="_blank" data-smartkarma-citation="entities:8898:1" rel="noopener">Sino-Ocean Group (3377 HK)</a> receivers. </li>
<li>As this is a forced sale, an offer of around HK$0.70-0.75, a 20%- 30% premium to the last close, would be sufficient to gain an irrevocable from the receivers. </li>
</ul>



Beijing Capital Grand (1329 HK) entered a trading halt based on the Hong Kong Code on Takeovers and Mergers. 
It is likely that Beijing Capital Land Ltd H (2868 HK), the largest shareholder, is launching an offer primarily to acquire the stake from Sino-Ocean Group (3377 HK) receivers. 
As this is a forced sale, an offer of around HK$0.70-0.75, a 20%- 30% premium to the last close, would be sufficient to gain an irrevocable from the receivers. 


Beijing Capital Grand (1329 HK): An Offer from Beijing Capital Land?

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>Hong Kong hotel-play <strong><a href="https://www.smartkarma.com/entities/langham-hospitality-inv-ss" target="_blank" data-smartkarma-citation="entities:760:1" rel="noopener">Langham Hospitality (1270 HK)</a></strong> was spun-off from <strong><a href="https://www.smartkarma.com/entities/great-eagle-holdings-ltd" target="_blank" data-smartkarma-citation="entities:758:1" rel="noopener">Great Eagle (41 HK)</a></strong> on the 30 May 2013. Now GE intends to take the company back into the fold. </li>
<li>Covid was devastating to the hospitality sector. As were the 2019 demonstrations. Langham's share price never recovered, and is currently trading at a lifetime low and a P/B of 0.21x.</li>
<li>No price was mentioned in the announcement. Expect a healthy premium to undisturbed, should a firm Offer unfold. But I wouldn't expect a knockout price.</li>
</ul>


Hong Kong hotel-play Langham Hospitality (1270 HK) was spun-off from Great Eagle (41 HK) on the 30 May 2013. Now GE intends to take the company back into the fold. 
Covid was devastating to the hospitality sector. As were the 2019 demonstrations. Langham's share price never recovered, and is currently trading at a lifetime low and a P/B of 0.21x.
No price was mentioned in the announcement. Expect a healthy premium to undisturbed, should a firm Offer unfold. But I wouldn't expect a knockout price.


Great Eagle Seeks To Delist Langham Hospitality (1270 HK)

Hong Kong

Dorsett Hospitality International Ltd. develops, owns, and operates mid-scale, upscale, and boutique hotels in Asia. The Company has a strong presence in Hong Kong and Malaysia and is focused on expansion in China and other regions of the Asia Pacific.

Dorsett Hospitality International (2266 HK)

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Dorsett Hospitality International (2266 HK)

Langham Hospitality Investments (1270 HK): Great Eagle (41 HK)’s Possible Scheme Privatisation

Our methodology for triangulating the potential offer price results in a range of HK$0.63-1.76. Our best guess is an offer of around HK$0.85, a 47%...

Arun George

Beijing Capital Grand (1329 HK): Scheme Vote on 10 January

This is a done deal. The offer price is final. At the last close and for the 6 February payment, the gross/annualised spread was 3.7%/22.2%.

Arun George

Beijing Capital Grand (1329 HK): Capital Group’s Scheme Privatisation at HK$0.85

Shareholders with blocking stakes are likely to be supportive, mainly as the offer is reasonable compared to historical trading ranges. At the...

Arun George

Beijing Capital Grand (1329 HK): An Offer from Beijing Capital Land?

It is likely that Beijing Capital Land, the largest shareholder, is launching an offer primarily to acquire the stake from Sino-Ocean Group receivers.

Arun George

Great Eagle Seeks To Delist Langham Hospitality (1270 HK)

Langham will pop tomorrow upon resumption of trading. I'd be happy chasing this up 20-25%. However, this is not a firm Offer. And one may still...

David Blennerhassett

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