Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/aag-energy-holdings-ltd" target="_blank" data-smartkarma-citation="entities:501:1" rel="noopener"><strong>AAG Energy Holdings (2686 HK)</strong></a> is one of those periodic (and rare) takeover situations that will likely be remembered for what went wrong rather than what went right.  </li>
<li>A low-balled Offer (proxy advisors agree); perfunctory IFA analysis; a large, and silent, shareholder; and the postponement of the Scheme vote due to voting instructions not being "duly processed".</li>
<li>A new Court Meeting has been confirmed for the 2 June. And now we have some odd CCASS movements which raise further questions.</li>
</ul>



AAG Energy Holdings (2686 HK) is one of those periodic (and rare) takeover situations that will likely be remembered for what went wrong rather than what went right.  
A low-balled Offer (proxy advisors agree); perfunctory IFA analysis; a large, and silent, shareholder; and the postponement of the Scheme vote due to voting instructions not being "duly processed".
A new Court Meeting has been confirmed for the 2 June. And now we have some odd CCASS movements which raise further questions.


AAG Energy (2686 HK): Curiouser and Curiouser

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.

Total Access Communication / Event-Driven

<ul>
<li>A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.</li>
<li>ECM developments - <a href="https://www.smartkarma.com/entities/chongqing-hongjiu-fruit" target="_blank" data-smartkarma-citation="entities:36023:1" rel="noopener">Chongqing Hongjiu Fruit (CHF HK)</a> is pre-marketing a US$200-300m IPO.</li>
<li>Event-Driven developments at <a href="https://www.smartkarma.com/entities/atlas-arteria-ltd" target="_blank" data-smartkarma-citation="entities:14430:1" rel="noopener">Atlas Arteria (ALX 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/infomedia-ltd" target="_blank" data-smartkarma-citation="entities:11385:1" rel="noopener">Infomedia Ltd (IFM AU)</a>, <a href="https://www.smartkarma.com/entities/link-administration-holdings-ltd" target="_blank" data-smartkarma-citation="entities:970:1" rel="noopener">Link Administration (LNK AU)</a>, <a href="https://www.smartkarma.com/entities/ramsay-health-care-ltd" target="_blank" data-smartkarma-citation="entities:673:1" rel="noopener">Ramsay Health Care (RHC AU)</a>, ResApp, DTAC/True, Dongzheng AFC.  </li>
</ul>


A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
ECM developments - Chongqing Hongjiu Fruit (CHF HK) is pre-marketing a US$200-300m IPO.
Event-Driven developments at Atlas Arteria (ALX AU), Genex Power Ltd (GNX AU), Infomedia Ltd (IFM AU), Link Administration (LNK AU), Ramsay Health Care (RHC AU), ResApp, DTAC/True, Dongzheng AFC.  


Weekly Deals Digest (07 Aug) - Hongjiu Fruit, Link, Infomedia, Atlas Arteria, ResApp, DTAC/True

China Vast Industrial Urban Development / Event-Driven

<ul>
<li>After a prolonged delay, the Cayman Islands legislative gazette <a href="https://legislation.gov.ky/cms/images/LEGISLATION/AMENDING/2022/2022-0028/CompaniesAmendmentAct2021CommencementOrder2022SL28of2022.pdf" target="_blank" rel="noopener">was published on 29 July</a>, which stated that the amended Cayman Islands Act would come into force on 31 August. </li>
<li>The Act will remove the headcount test for schemes, eliminating a layer of uncertainty for controlling shareholders wishing to privatise listed Cayman-incorporated companies.</li>
<li>In light of this development, we look at current active privatisations, past failed privatisations and rumoured transactions which stand to gain a new lease of life from this Act.</li>
</ul>


After a prolonged delay, the Cayman Islands legislative gazette was published on 29 July, which stated that the amended Cayman Islands Act would come into force on 31 August. 
The Act will remove the headcount test for schemes, eliminating a layer of uncertainty for controlling shareholders wishing to privatise listed Cayman-incorporated companies.
In light of this development, we look at current active privatisations, past failed privatisations and rumoured transactions which stand to gain a new lease of life from this Act.


The Cayman Islands to Remove the Headcount Test on 31 August

<ul>
<li>The amended Cayman Islands Act is yet to become law which increases the odds that the headcount test remains for <a href="https://www.smartkarma.com/entities/razer-inc" target="_blank" data-smartkarma-citation="entities:24380:1" rel="noopener">Razer Inc (1337 HK)</a>'s court meeting on 26 April. </li>
<li>Since the despatch of the scheme document, the gross spread has narrowed to 7.6% (last close). Current deal probability implies an 80% chance of success.</li>
<li>The rising deal probability negatively skews the risk/reward profile. We are hesitant to be long this trade into a scheme meeting that is too close to call.</li>
</ul>


The amended Cayman Islands Act is yet to become law which increases the odds that the headcount test remains for Razer Inc (1337 HK)'s court meeting on 26 April. 
Since the despatch of the scheme document, the gross spread has narrowed to 7.6% (last close). Current deal probability implies an 80% chance of success.
The rising deal probability negatively skews the risk/reward profile. We are hesitant to be long this trade into a scheme meeting that is too close to call.


Razer’s Offer Risk/Reward Ahead of the 26 April Scheme Meeting

<ul>
<li>China's State Administration for Market Supervision is reviewing <strong><a href="https://www.smartkarma.com/entities/razer-inc" target="_blank" data-smartkarma-citation="entities:24380:1" rel="noopener">Razer Inc (1337 HK)</a></strong>'s privatisation as a simple case. </li>
<li>With the key regulatory pre-condition all but satisfied, the Scheme timeline will significantly shorten from hereon. </li>
<li>Expect shares to narrow into terms at the bell tomorrow. </li>
</ul>


China's State Administration for Market Supervision is reviewing Razer Inc (1337 HK)'s privatisation as a simple case. 
With the key regulatory pre-condition all but satisfied, the Scheme timeline will significantly shorten from hereon. 
Expect shares to narrow into terms at the bell tomorrow. 


Razer (1337 HK): SAMR Takes It On In Simple Procedure

Hong Kong

Natural Beauty Bio-Technology Limited researches and develops, manufactures and sells aroma therapeutic, beauty and skin care products, marketed and distributes through a sales network in China. The Company also provides skin treatments and SPA services through its beauty centers offering tailor-made equipment by the pr ofessional beauticians.

Ming Fai International Holdings Limited manufactures and supplies amenity products and accessories to the hotel, hospitality, and travel industries. The Company's products include personal healthcare and other in-room accessories and airline amenity kits and accessories.

HIN Sang Group International Holding Co., Ltd. sells and distributes personal care products, health care products and household products purchased from authorized dealers and independent traders and sold onward to small independent pharmacy stores in Hong Kong.

Hin Sang Group International Hldg (6893 HK)

Zhongzheng International Company Limited, through its subsidiaries, manufactures and sells healthcare and household products. The Company also provides internet-related services and develops and sells enterprise application software. Zhongzheng International provides services in Hong Kong.

Shunten International (Holdings) Limited operates as a health care products distribution company. The Company sales health products, beauty supplements products, and other products. Shunten International (Holdings) also provides online advertising agency and online payment services.

Lam Soon (Hong Kong) Limited, through its subsidiaries, manufactures and distributes a range of food products, including flour, edible oils and vegetable fats. The Company also manufactures and distributes household cleaning products, including dishwashing detergent, laundry powder, fabric softener, and floor cleanser.

China Starch Holdings Limited manufactures cornstarch. The Company also manufactures L-lysine hydrochloride salt and other ancillary corn-refined and corn-base products such as corn slurry, corn germ, corn fiber, corn glutten meal, and agricultural fertilizers.

Tibet Water Resources Ltd. produces branded premium bottled mineral water. The Company is focused on institutional sales such as rail transport operators, commercial banks, airlines, government organizations, and other major corporations in China.

Four Seas Mercantile Holdings Limited, through its subsidiaries, manufactures and trades snack foods, confectionery, beverages, and frozen food products. The Company also manufactures and sells ham and ham related products.

Vedan International (Holdings) Limited manufactures and sells fermentation-based food additive and biochemical products, cassava starch-based industrial products, specialty chemical products, and beverages.

COTA CO., LTD. manufactures and sells hair care products.  The Company offers an extensive line of perm, coloring, styling, and treatment products.

Nature's Sunshine Products, Inc. manufactures and distributes nutritional and personal care products.  The Company's products include herbal products, vitamins, homeopathics, oils and lotions, aloe vera gel, herbal shampoo, toothpaste, and skin cleanser.  Nature's Sunshine markets its products in the United States and internationally.

Henan Rebecca Hair Products Co., Ltd. manufactures wigs, fiber hair, and hair pieces used for hair styling, hair extension, and training purposes in beauty salons. The Company exports its products mainly to the United States and Europe.

Henan Rebecca Hair Products Co., (600439 CH)

YA-MAN LTD. is a manufacturer of home facial equipment, and also sells its facial massager, cosmetics and laundry.

Liuzhou Liangmianzhen Co., Ltd. manufactures and markets oral hygiene products, cleaning products and feminine hygiene products. The company's main products include a variety of toothpaste with ingredients from traditional Chinese medicines. Liuzhou Liangmianzhen uses LMZ brand name.

Liuzhou Liangmianzhen Co, Ltd. (600249 CH)

Perfect Group Corp., Ltd. manufactures oral cleaning care products. The Company produces and sells toothbrushes, flosses, mouthwashes, oral spray, wipes, toothpastes, and other products. Perfect Group markets its products throughout China.

MANDOM CORPORATION manufactures and markets a variety of cosmetic products for men and women.  The Company's products include hair care and skin care cosmetics.

Shanghai Jiaoda Onlly Co., Ltd. develops, manufactures, and markets biological products, healthcare food, ginseng products, and other nutritional supplements. Through its subsidiaries, the Company also provides advertising, medical, travel, and food services.

Chlitina Holding Limited manufactures, markets, and distributes beauty and skin care products. The company promotes its business through franchise chain stores.

Cupid Ltd. manufactures and markets condoms. The Company sells its products in India and elsewhere throughout the world.

Golden Throat Holdings Group Company Limited manufactures throat lozenges.  The Company offers its products throughout China.

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Golden Throat Holdings (6896 HK)

AAG Energy (2686 HK): Curiouser and Curiouser

AAG Energy is cheap. But as one reader pointed out - "I just don't know what's going on". I'd second that. This is an avoid.

David Blennerhassett

Weekly Deals Digest (07 Aug) - Hongjiu Fruit, Link, Infomedia, Atlas Arteria, ResApp, DTAC/True

Last week, notable developments occurred in Event-Driven (Link Admin, ResApp, Ramsay, DTAC/True, Infomedia, Atlas Arteria, Genex Power, Dongzheng...

Arun George

The Cayman Islands to Remove the Headcount Test on 31 August

We expect the removal of the headcount test to stir up activity in privatisations of HKEx-listed Cayman-incorporated companies, especially in light...

Arun George

Razer’s Offer Risk/Reward Ahead of the 26 April Scheme Meeting

The amended Cayman Islands Act is yet to become law increasing the odds that the headcount test remains. We are hesitant to be long this trade into...

Arun George

Razer (1337 HK): SAMR Takes It On In Simple Procedure

SAMR is reviewing Razer Inc (1337 HK) privatisation as a simple case. With the key regulatory pre-condition all but satisfied, expect the Scheme...

David Blennerhassett

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