Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

Event-Driven

IKang Healthcare Group (ADR) / Event-Driven

Meinian Onehealth has withdrawn its US$25/ADS bid to acquire iKang (announcement to the Shenzhen exchange attached), leaving Alibaba-backed Yunfeng Capital's US$20-25/ADS bid as the only offer on the table.  With the shares trading at US$19.57, the biggest risk is a final bid at the low end of the range (the "meh" in our title) combined with the length of the timetable for closing the deal.  There are strong arguments for a final bid in the upper half of the offer range, but we cannot ignore the…

Meinian Onehealth has withdrawn its US$25/ADS bid to acquire iKang (announcement to the Shenzhen exchange attached), leaving Alibaba-backed Yunfeng Capital's US$20-25/ADS bid as the only offer on the table.  With the shares trading at US$19.57, the biggest risk is a final bid at the low end of the range (the "meh" in our title) combined with the length of the timetable for closing the deal.  There are strong arguments for a final bid in the upper half of the offer range, but we cannot ignore the…

It's Alibaba's Game Now: "Meh" Is Possible

The bidding group organized by Chairman Zhang filed an amended Form 13-D today (attached) disclosing the withdrawal of his US$17.80/ADS offer to take the company private (letter on page 12 of the attachment).In light of the new offer from Yunfeng Capital and the company's relationship with Alibaba (a significant client), we speculate that Chairman Zhang will throw in his lot with Yunfeng (particularly given his resistance to the Meinian Onehealth offer).The shares retreated 5% today on this…

The bidding group organized by Chairman Zhang filed an amended Form 13-D today (attached) disclosing the withdrawal of his US$17.80/ADS offer to take the company private (letter on page 12 of the attachment).In light of the new offer from Yunfeng Capital and the company's relationship with Alibaba (a significant client), we speculate that Chairman Zhang will throw in his lot with Yunfeng (particularly given his resistance to the Meinian Onehealth offer).The shares retreated 5% today on this…

iKang announced the receipt of a non-binding offer US$20-25/ADS cash from PE firm Yunfeng Capital. The offer tops Chairman Zhang's offer of US$17.80/ADS, and "ties" with Meinian Onehealth's US$25/ADS offer.  The announcement and offer letter are attached, so we will focus on several brief highlights:<ol><li>Valuation -- The letter notes that the offer values the company at an EV/EBITDA multiple of 18.5-22.5x. As we have written before, we think that fair value approximates US$25/ADS and that precedent…</li></ol>

iKang announced the receipt of a non-binding offer US$20-25/ADS cash from PE firm Yunfeng Capital. The offer tops Chairman Zhang's offer of US$17.80/ADS, and "ties" with Meinian Onehealth's US$25/ADS offer.  The announcement and offer letter are attached, so we will focus on several brief highlights:Valuation -- The letter notes that the offer values the company at an EV/EBITDA multiple of 18.5-22.5x. As we have written before, we think that fair value approximates US$25/ADS and that precedent…

Founder, Riedel Research

David Riedel

Independent equity research on GEM Markets

Riedel Research

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Thematic (Sector/Industry)

A surprisingly poor employment report in the US became the central focus among investors across the globe on Friday. In May the US added just 38,000 jobs, well under the expected 156,000.A poor jobs report has triggered widespread concerns that a weak external environment is starting to feed through to infect the US economy. These concerns reflect the risk of what we define as a ‘bad de-polarization’ playing out in the global economy.Currently the global economy is extremely polarized (there is a large divergence between the health of the worlds strongest and weakest economies). As the global economy de-polarizes the health of the weakest economies will rise to converge with that of the strongest economies (a good de-polarization) or vice versa.

A surprisingly poor employment report in the US became the central focus among investors across the globe on Friday. In May the US added just 38,000 jobs, well under the expected 156,000.A poor jobs report has triggered widespread concerns that a weak external environment is starting to feed through to infect the US economy. These concerns reflect the risk of what we define as a ‘bad de-polarization’ playing out in the global economy.Currently the global economy is extremely polarized (there is a large divergence between the health of the worlds strongest and weakest economies). As the global economy de-polarizes the health of the weakest economies will rise to converge with that of the strongest economies (a good de-polarization) or vice versa.

Bad Jobs Report Good For Some EMs, Great For Others

CSI Deteriorates in May On Policy Uncertainty <ul>
<li>In May the MNI China Consumer Sentiment Indicator (CSI) dropped to a level of 114.2, below the key threshold of 116 separating rationally pessimistic consumers from panicking consumers. </li>
<li>
Deterioration in the CSI during May stems from growing uncertainty over the future path of China’s monetary policy. As the urgent need for deleveraging has become apparent a mysterious article published by an anonymous 'authoritative figure' in the People's Daily…</li>
</ul>

CSI Deteriorates in May On Policy Uncertainty 
In May the MNI China Consumer Sentiment Indicator (CSI) dropped to a level of 114.2, below the key threshold of 116 separating rationally pessimistic consumers from panicking consumers. 

Deterioration in the CSI during May stems from growing uncertainty over the future path of China’s monetary policy. As the urgent need for deleveraging has become apparent a mysterious article published by an anonymous 'authoritative figure' in the People's Daily…


China Consumer Sentiment Snapshot - Urgent Need for Deleveraging Becomes Apparent

China

Meinian Onehealth Healthcare Holdings Co Ltd mainly provides health examination  services.

Meinian Onehealth Healthcare H (002044 CH)

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Meinian Onehealth Healthcare H (002044 CH)

It's Alibaba's Game Now: "Meh" Is Possible

Meinian Onehealth has withdrawn its US$25/ADS bid to acquire iKang (announcement to the Shenzhen exchange attached), leaving Alibaba-backed Yunfeng...

Kemp Dolliver, CFA

Chairman Zhang Drops His Bid

The bidding group organized by Chairman Zhang filed an amended Form 13-D today (attached) disclosing the withdrawal of his US$17.80/ADS offer to...

Kemp Dolliver, CFA

A New Offer: Has Alibaba Switched Sides?

iKang announced the receipt of a non-binding offer US$20-25/ADS cash from PE firm Yunfeng Capital. The offer tops Chairman Zhang's offer of...

Kemp Dolliver, CFA

Bad Jobs Report Good For Some EMs, Great For Others

A surprisingly poor employment report in the US became the central focus among investors across the globe on Friday. In May the US added just...

David Riedel

China Consumer Sentiment Snapshot - Urgent Need for Deleveraging Becomes Apparent

CSI Deteriorates in May On Policy Uncertainty In May the MNI China Consumer Sentiment Indicator (CSI) dropped to a level of 114.2, below the key...

David Riedel

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52-week Range

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