Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

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<p>On the 6 December, fashion wear and accessory player <a href="https://www.smartkarma.com/entities/i-t-ltd" target="_blank" data-smartkarma-citation="entities:2795:1" rel="noopener">I.T Ltd (999 HK)</a> received a pre-conditional <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/1206/2020120600017.pdf" target="_blank" rel="noopener">Offer</a>, by way of a Scheme, at HK$3.00/share, a 54.6% premium to last close. The Offer price is final.</p>
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<p>The Offeror was Brooklyn Investment Limited, which is 50.65% owned by the Founder Holdco and 49.35% by CVC Holdco. Founder Holdco is held by Sham Kar Wai (Chairman and founder of I.T.), Sham Kin Wai (ED and CCO), and family members. Founder also controls 63.61% of shares out. CVC Holdco is wholly-owned by CVC Funds.</p>
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<p>The pre-condition, which referred to approval from the State Administration for Market Regulation of the PRC, the anti-monopoly watchdog, was satisfied on the <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0120/2021012001069.pdf" target="_blank" rel="noopener">19 January</a>.</p>
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<p>Conditions to the Scheme are stock standard: at least 75% of Independent/Disinterested Shares FOR &amp; not more than 10% of ALL Independent Shares against. The headcount test applies as IT is Bermuda incorporated. </p>
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<p>After <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/1222/2020122200797.pdf" target="_blank" rel="noopener">delaying</a> the despatch of the Scheme Document,  I.T has now <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0321/2021032100039.pdf" target="_blank" rel="noopener">despatched</a> the Doc.</p>
<p>The Court Meeting will be held on 16 April. The joint IFAs (Challenge Capital &amp; China Tonghai) considered the Offer price to be fair and reasonable.</p>
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<p>More below the fold.</p>
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On the 6 December, fashion wear and accessory player I.T Ltd (999 HK) received a pre-conditional Offer, by way of a Scheme, at HK$3.00/share, a 54.6% premium to last close. The Offer price is final.


The Offeror was Brooklyn Investment Limited, which is 50.65% owned by the Founder Holdco and 49.35% by CVC Holdco. Founder Holdco is held by Sham Kar Wai (Chairman and founder of I.T.), Sham Kin Wai (ED and CCO), and family members. Founder also controls 63.61% of shares out. CVC Holdco is wholly-owned by CVC Funds.


The pre-condition, which referred to approval from the State Administration for Market Regulation of the PRC, the anti-monopoly watchdog, was satisfied on the 19 January.


Conditions to the Scheme are stock standard: at least 75% of Independent/Disinterested Shares FOR &amp; not more than 10% of ALL Independent Shares against. The headcount test applies as IT is Bermuda incorporated. 


After delaying the despatch of the Scheme Document,  I.T has now despatched the Doc.
The Court Meeting will be held on 16 April. The joint IFAs (Challenge Capital &amp; China Tonghai) considered the Offer price to be fair and reasonable.


More below the fold.


I.T. (999 HK): Scheme Meeting 16 April. IFA Says Fair

Last Week in Event SPACE: Shinsei Bank, Huifu Payment, Vedanta, Cardinal Resources, Jih Sun Finance

<p>Fashion wear and accessory player <a href="https://www.smartkarma.com/entities/i-t-ltd" target="_blank" data-smartkarma-citation="entities:2795:1" rel="noopener">I.T Ltd (999 HK)</a> has received a pre-conditional <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/1206/2020120600017.pdf" target="_blank" rel="noopener">Offer</a>, by way of a Scheme, at HK$3.00/share, a 54.6% premium to last close. The Offer price is final.</p>
<p>The Offeror is Brooklyn Investment Limited, which is 50.65% owned by the Founder Holdco and 49.35% by CVC Holdco. Founder Holdco is held by Sham Kar Wai (Chairman and founder), Sham Kin Wai (ED and CCO), and family members. Founder also controls 63.61% of shares out. CVC Holdco is wholly-owned by CVC Funds.</p>
<p>The pre-condition refers to approval from the State Administration for Market Regulation of the PRC (SAMR), the anti-monopoly watchdog. This condition is not waiverable. </p>
<p>Conditions to the Scheme are standard: at least 75% of Independent/Disinterested Shares FOR &amp; not more than 10% of ALL Independent Shares against. The headcount test applies as IT is Bermuda incorporated.</p>
<p>Disinterested shareholders total 36.39% of shares out therefore the blocking stake is equivalent to 3.639% or 43.52mn shares. </p>
<p>More below the fold.</p>

Fashion wear and accessory player I.T Ltd (999 HK) has received a pre-conditional Offer, by way of a Scheme, at HK$3.00/share, a 54.6% premium to last close. The Offer price is final.
The Offeror is Brooklyn Investment Limited, which is 50.65% owned by the Founder Holdco and 49.35% by CVC Holdco. Founder Holdco is held by Sham Kar Wai (Chairman and founder), Sham Kin Wai (ED and CCO), and family members. Founder also controls 63.61% of shares out. CVC Holdco is wholly-owned by CVC Funds.
The pre-condition refers to approval from the State Administration for Market Regulation of the PRC (SAMR), the anti-monopoly watchdog. This condition is not waiverable. 
Conditions to the Scheme are standard: at least 75% of Independent/Disinterested Shares FOR &amp; not more than 10% of ALL Independent Shares against. The headcount test applies as IT is Bermuda incorporated.
Disinterested shareholders total 36.39% of shares out therefore the blocking stake is equivalent to 3.639% or 43.52mn shares. 
More below the fold.

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.

<p><a href="https://www.smartkarma.com/entities/i-t-ltd" target="_blank" data-smartkarma-citation="entities:2795:1" rel="noopener">I.T Ltd (999 HK)</a> is principally engaged in the design, sourcing and sales of fashion wears and accessories. On Sunday, I.T announced a pre-conditional privatisation offer from Brooklyn Investment Limited, which is owned by Founder group (50.65%) and CVC (49.35%). The joint offerors will offer HK$3.00 in cash per non-founder scheme share, a premium of 54.6% to the last trading price of HK$1.94 per share (30 November prior to the trading halt). </p><div class="content-highlight"><p>The pre-condition is regulatory approval from SAMR. The key conditions precedents are the headcount test and the scheme approved by at least 75% disinterested shareholders (&lt;10% disinterested shareholders rejection). While the offer price is not a knockout bid particularly for long-term shareholders, I.T's uncertain future (due to short-term challenging market conditions and long-term structural challenges) and a reasonable offer make it likely that the privatisation succeeds. </p></div>

I.T Ltd (999 HK) is principally engaged in the design, sourcing and sales of fashion wears and accessories. On Sunday, I.T announced a pre-conditional privatisation offer from Brooklyn Investment Limited, which is owned by Founder group (50.65%) and CVC (49.35%). The joint offerors will offer HK$3.00 in cash per non-founder scheme share, a premium of 54.6% to the last trading price of HK$1.94 per share (30 November prior to the trading halt). The pre-condition is regulatory approval from SAMR. The key conditions precedents are the headcount test and the scheme approved by at least 75% disinterested shareholders (&lt;10% disinterested shareholders rejection). While the offer price is not a knockout bid particularly for long-term shareholders, I.T's uncertain future (due to short-term challenging market conditions and long-term structural challenges) and a reasonable offer make it likely that the privatisation succeeds. 

I.T’s Limited’s Privatisation Bid from a CVC-Led Consortium

Global Special Situations & Strategy, SR Services Ltd

David Lepper

Global Special Situations & Strategy

SR Services Ltd

SR Services provides Strategic Knowledge and Solutions services for Family Offices and Corporate Business. 

We deliver this via advisory services, strategic planning, opportunity analysis/sourcing, as well as solution implementation. 

Whilst, we create intellectual discipline and operational leverage for your projects or daily activities, our ultimate objective is to empower whilst enhancing your decision making. 

Strategic Knowledge and Solutions

Thematic (Sector/Industry)

<p>In January 2019, we re-examined the divide between value and growth stocks, citing expectation of a reversal to value based on historical data and macro conditions. With a pirouette in Central Bank policies, we now see this reversal being delayed.</p><p>We expect to see the growth style re-emerge over the next few quarters, but that its dominance over value which had been evident (over much of the last decade) is unlikely to remerge. So, in our view, the GARP style will be key.</p><p>Our Q3 2019 list presents 10-stocks well placed to continue the outperformance that H1 2019's list presented  which delivered an average share price return of +16% versus the MSCI Asia Pacific's +9%.</p><p>Subscribe via Smartkarma (or utilise your subscription) to learn how this screening review identified value in one particular stock in January 2019, that returned sharholders +87% in 6-months and gain greater insight into which names hold strong potential to repeat.</p>

In January 2019, we re-examined the divide between value and growth stocks, citing expectation of a reversal to value based on historical data and macro conditions. With a pirouette in Central Bank policies, we now see this reversal being delayed.We expect to see the growth style re-emerge over the next few quarters, but that its dominance over value which had been evident (over much of the last decade) is unlikely to remerge. So, in our view, the GARP style will be key.Our Q3 2019 list presents 10-stocks well placed to continue the outperformance that H1 2019's list presented  which delivered an average share price return of +16% versus the MSCI Asia Pacific's +9%.Subscribe via Smartkarma (or utilise your subscription) to learn how this screening review identified value in one particular stock in January 2019, that returned sharholders +87% in 6-months and gain greater insight into which names hold strong potential to repeat.

Screening the Silk Road: Q3-2019 Small-Mid Cap GARP (Zulu Warrior Screening)

Hong Kong

I.T Ltd. is an investment holding company. The Company, through its subsidiaries, retails and trades fashion wears and accessories.

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I.T Ltd (999 HK)

I.T. (999 HK): Scheme Meeting 16 April. IFA Says Fair

Currently trading at a wide gross/annualised spread of 5.6%/53.9% given the significant downside if the deal breaks. But I think there's enough in...

David Blennerhassett

Last Week in Event SPACE: Shinsei Bank, Huifu Payment, Vedanta, Cardinal Resources, Jih Sun Finance

The weekend is upon us - pour yourself some coffee (or mulled wine) and sift through a brief summary of insights on various events discussed during...

David Blennerhassett

I.T. (999 HK): Management/CVC-Led Offer

Currently trading at a gross/annualised spread of 8.3%/21.1%, assuming the transaction completes early May. You'd expect this to trade wide given...

David Blennerhassett

I.T’s Limited’s Privatisation Bid from a CVC-Led Consortium

I.T announced a pre-conditional privatisation offer of HK$3.00 in cash per non-founder scheme share, a premium of 54.6% to the last trading price....

Arun George

Screening the Silk Road: Q3-2019 Small-Mid Cap GARP (Zulu Warrior Screening)

In January 2019, we re-examined the divide between value and growth stocks, citing expectation of a reversal to value based on historical data and...

David Lepper

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