Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Equity Bottom-Up

<p>The Kerry Group has been busy of late.</p>
<p>Back in December, <a href="https://www.smartkarma.com/entities/kerry-logistics-network-ltd" target="_blank" data-smartkarma-citation="entities:367:1" rel="noopener">Kerry Logistics Network (636 HK)</a> IPO'ed <a href="https://www.smartkarma.com/entities/kerry-express-thailand" target="_blank" data-smartkarma-citation="entities:29253:1" rel="noopener">Kerry Express Thailand (KEX TB)</a> as discussed by <a href="https://www.smartkarma.com/profiles/sumeet-singh" target="_blank" data-smartkarma-citation="accounts:4" rel="noopener">Sumeet Singh</a> in <em><a href="https://skr.ma/uGPdd" target="_blank" rel="noopener">Kerry Express Thailand IPO - Time for Delivery</a></em>.</p>
<p>Last month <a href="https://www.smartkarma.com/entities/kerry-properties-ltd" target="_blank" data-smartkarma-citation="entities:3320:1" rel="noopener">Kerry Properties (683 HK)</a> ("KPL") and <a href="https://www.smartkarma.com/entities/kerry-logistics-network-ltd" target="_blank" data-smartkarma-citation="entities:367:1" rel="noopener">Kerry Logistics Network (636 HK)</a> ("KLN") <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0210/2021021000043.pdf" target="_blank" rel="noopener">announced</a> a pre-conditional Partial Offer from  <a href="https://www.smartkarma.com/entities/maanshan-dingtai-rare-a" target="_blank" data-smartkarma-citation="entities:4128:1" rel="noopener">S.F. Holding (002352 CH)</a>.  This is an ongoing transaction - see <em><a href="https://skr.ma/D9RK7" target="_blank" rel="noopener">Kerry Logistics (636 HK): SF Holdings' Pre-Conditional Partial Offer</a></em>. KLN announced last night the composite document has been <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0308/2021030801425.pdf" target="_blank" rel="noopener">delayed</a> potentially up to the 16 August 201. </p>
<div>
<a href="https://www.smartkarma.com/entities/shangri-la-asia-ltd" target="_blank" data-smartkarma-citation="entities:19690:1" rel="noopener">Shangri-La Asia (69 HK)</a>, majority-owned by the Kerry Group, is well up on its March 2020 COVID low, and up 9.5% YTD.  Around half of its hotels are in China, which have witnessed a strong uptick in local leisure and corporate traveling, generating positive EBITDA as early as June last year, the first time since the first outbreak of the pandemic.</div>
<div></div>
<div>Currently trading at 0.6x P/B against a pre-COVID average multiple of 0.8x., this is worth a second look.</div>
<div></div>
<div>More below the fold.</div>

The Kerry Group has been busy of late.
Back in December, Kerry Logistics Network (636 HK) IPO'ed Kerry Express Thailand (KEX TB) as discussed by Sumeet Singh in Kerry Express Thailand IPO - Time for Delivery.
Last month Kerry Properties (683 HK) ("KPL") and Kerry Logistics Network (636 HK) ("KLN") announced a pre-conditional Partial Offer from  S.F. Holding (002352 CH).  This is an ongoing transaction - see Kerry Logistics (636 HK): SF Holdings' Pre-Conditional Partial Offer. KLN announced last night the composite document has been delayed potentially up to the 16 August 201. 

Shangri-La Asia (69 HK), majority-owned by the Kerry Group, is well up on its March 2020 COVID low, and up 9.5% YTD.  Around half of its hotels are in China, which have witnessed a strong uptick in local leisure and corporate traveling, generating positive EBITDA as early as June last year, the first time since the first outbreak of the pandemic.

Currently trading at 0.6x P/B against a pre-COVID average multiple of 0.8x., this is worth a second look.

More below the fold.

Event-Driven

Last Week In Event SPACE: Keisei/Oriental Ld, Nat'l Storage, Sembcorp, Leyou, Accordia Golf, Samba

APAC IPOs & Placements

Zhen Zhou, Toh

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

China Jinmao Holdings / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/china-jinmao-holdings-group" target="_blank" data-smartkarma-citation="entities:35:1" rel="noopener">China Jinmao Holdings (817 HK)</a> is looking to raise up to US$700m in its primary placement. Sinochem is subscribing to up US$257m in the placement.</p><p>In this note, we will look at the deal dynamics and run the placement through our framework.</p>

China Jinmao Holdings (817 HK) is looking to raise up to US$700m in its primary placement. Sinochem is subscribing to up US$257m in the placement.In this note, we will look at the deal dynamics and run the placement through our framework.

China Jinmao (中国金茂) Placement - Sinochem's Participation Helps and Past Deals Have Done Well

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.

Jinmao Hotel & Jinmao (China) Hotel Investments and Management Limited / Event-Driven

Jinmao Hotel & Jinmao (China) Hotel Investments and Management Limited

<p><a href="https://www.smartkarma.com/entities/jinmao-hotel-jinmao-china-hotel-investments-and-management-limited" target="_blank" data-smartkarma-citation="entities:16994:1" rel="noopener">Jinmao Hotel &amp; Jinmao (China) Hotel Investments and Management Limited (6139 HK)</a> is a fixed single investment trust with a focus on the Chinese hospitality industry. After market close on Friday, it announced a privatisation offer by way of a scheme of arrangement from <a href="https://www.smartkarma.com/entities/china-jinmao-holdings-group" target="_blank" data-smartkarma-citation="entities:35:1" rel="noopener">China Jinmao Holdings (817 HK)</a>, the controlling shareholder with a 66.77% stake. China Jinmao will offer HK$4.80 per stapled unit. The bid represents a premium of 30.4% over the closing price of HK$3.68 per share stapled unit on the last trading day (5 June 2020). China Jinmao has received irrevocables from independent unitholders representing 21.04% of the total share stapled units in issue.</p><div class="content-highlight"><p>The key condition precedents are the headcount test (majority in the number of unitholders other than the offeror) along with the scheme approved by at least 75% independent unitholders and &lt;10% rejection by all independent unitholders. Overall, we believe that the privatisation bid will be successful. </p></div>

Jinmao Hotel &amp; Jinmao (China) Hotel Investments and Management Limited (6139 HK) is a fixed single investment trust with a focus on the Chinese hospitality industry. After market close on Friday, it announced a privatisation offer by way of a scheme of arrangement from China Jinmao Holdings (817 HK), the controlling shareholder with a 66.77% stake. China Jinmao will offer HK$4.80 per stapled unit. The bid represents a premium of 30.4% over the closing price of HK$3.68 per share stapled unit on the last trading day (5 June 2020). China Jinmao has received irrevocables from independent unitholders representing 21.04% of the total share stapled units in issue.The key condition precedents are the headcount test (majority in the number of unitholders other than the offeror) along with the scheme approved by at least 75% independent unitholders and &lt;10% rejection by all independent unitholders. Overall, we believe that the privatisation bid will be successful. 

Jinmao Hotel’s Privatisation Bid from China Jinmao

<p><a href="https://www.smartkarma.com/entities/jinmao-hotel-jinmao-china-hotel-investments-and-management-limited" target="_blank" data-smartkarma-citation="entities:16994:1" rel="noopener">Jinmao Hotel &amp; Jinmao (China) Hotel Investments and Management Limited (6139 HK)</a> (Jinmao Hotel) was suspended on the 8 June "<em>pursuant to the Code on Takeovers and Mergers</em>", having gained ~40% in the previous three trading days.</p>
<p>Funny that.</p>
<p>Late Friday afternoon, an Offer by way of a Scheme was <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0612/2020061200737.pdf" target="_blank" rel="noopener">announced</a>, at an offer price of $4.80/share, a 30.4% premium to last close. The Offer price is Final. Irrevocables total 21.04%. The Offeror (<a href="https://www.smartkarma.com/entities/china-jinmao-holdings-group" target="_blank" data-smartkarma-citation="entities:35:1" rel="noopener">China Jinmao Holdings (817 HK)</a>) and concert parties hold 66.81%, therefore the blocking stake at the Unitholders Meeting will be 3.319% of shares out. Jinmao is Cayman incorporated, so the headcount test applies. </p>
<p>$4.80 is roughly a two-year high, and ~90% above where shares were trading at the beginning of the month. Plus a 57.4% premium to NAV (Dec-19). That should be enough to get this Offer over the line.</p>
<p>There is also a question mark over the treatment of the final distribution of HK$0.1543/share.</p>

Jinmao Hotel &amp; Jinmao (China) Hotel Investments and Management Limited (6139 HK) (Jinmao Hotel) was suspended on the 8 June "pursuant to the Code on Takeovers and Mergers", having gained ~40% in the previous three trading days.
Funny that.
Late Friday afternoon, an Offer by way of a Scheme was announced, at an offer price of $4.80/share, a 30.4% premium to last close. The Offer price is Final. Irrevocables total 21.04%. The Offeror (China Jinmao Holdings (817 HK)) and concert parties hold 66.81%, therefore the blocking stake at the Unitholders Meeting will be 3.319% of shares out. Jinmao is Cayman incorporated, so the headcount test applies. 
$4.80 is roughly a two-year high, and ~90% above where shares were trading at the beginning of the month. Plus a 57.4% premium to NAV (Dec-19). That should be enough to get this Offer over the line.
There is also a question mark over the treatment of the final distribution of HK$0.1543/share.

Jinmao Hotel (6139 HK): Priced To Check Out

Hong Kong

Jinmao Hotel & Jinmao (China) Hotel Investments and Management Limited trade together as a stapled security. Jinmao Hotel primarily owns and invests in a portfolio of hotels. Jinmao (China) Hotel Investments and Management Limited is a fixed, single investment trust with an initial focus on the hospitality industry in the PRC.

Jinmao Hotel & Jinmao (China) Hotel Investments and Management Limited (6139 HK)

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

Jinmao Hotel & Jinmao (China) Hotel Investments and Management Limited (6139 HK)

Shangri-La Asia (69 HK): Stay Safe

Based on the average price to book - pre-COVID - I would expect around 33% upside from here, or HK$10.80/share, where it traded as recently as May...

David Blennerhassett

Last Week In Event SPACE: Keisei/Oriental Ld, Nat'l Storage, Sembcorp, Leyou, Accordia Golf, Samba

Last Week in Event SPACE ... With Tokyo Disneyland opening this past Wednesday, Keisei Electric Railway Co (9009 JP) was coming up "expensive"....

David Blennerhassett

China Jinmao (中国金茂) Placement - Sinochem's Participation Helps and Past Deals Have Done Well

China Jinmao Holdings (817 HK) is looking to raise up to US$700m in its primary placement. Sinochem is subscribing to up US$257m in the...

Zhen Zhou, Toh

Jinmao Hotel’s Privatisation Bid from China Jinmao

Jinmao Hotel & Jinmao (China) Hotel Investments and Management Limited (6139 HK) is a fixed single investment trust with a focus on the Chinese...

Arun George

Jinmao Hotel (6139 HK): Priced To Check Out

Jinmao Hotel & Jinmao (China) Hotel Investments and Management Limited (6139 HK) (Jinmao Hotel) was suspended on the 8 June "pursuant to the...

David Blennerhassett

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)