Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<p>On the 17 June, <a href="https://www.smartkarma.com/entities/skyworth-digital-holdings-ltd" target="_blank" data-smartkarma-citation="entities:10941:1" rel="noopener">Skyworth Digital (751 HK)</a> announced a <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0617/2020061701026.pdf" target="_blank" rel="noopener">partial buyback</a> - 12.83% of shares out or 392.8mn shares, at HK$2.80/share, a 32.1% premium to last close.</p>
<p>The Offer was open to acceptances after the Circular was <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0727/2020072700015.pdf" target="_blank" rel="noopener">despatched</a> on the 27 July.  The SGM (to vote on the Offer and the whitewash waiver) was initially expected to be held yesterday, but was pushed back a day on account of Typhoon Higos.</p>
<p>The votes are now in for the <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0820/2020082000642.pdf" target="_blank" rel="noopener">delayed SGM</a>. The Offer was approved by 99.69% of those in attendance; and the special resolution to approve the whitewash waiver was approved by 98.56%.</p>
<p>The close of the Offer has been revised to the 3 September, from the 2 September. Cheques are expected to be despatched on or before the 14 September, from 11 September under the previous timetable. </p>
<p>As always, more below the fold. <em><strong>Plus Ye Olde Arb Grids. </strong></em></p>

On the 17 June, Skyworth Digital (751 HK) announced a partial buyback - 12.83% of shares out or 392.8mn shares, at HK$2.80/share, a 32.1% premium to last close.
The Offer was open to acceptances after the Circular was despatched on the 27 July.  The SGM (to vote on the Offer and the whitewash waiver) was initially expected to be held yesterday, but was pushed back a day on account of Typhoon Higos.
The votes are now in for the delayed SGM. The Offer was approved by 99.69% of those in attendance; and the special resolution to approve the whitewash waiver was approved by 98.56%.
The close of the Offer has been revised to the 3 September, from the 2 September. Cheques are expected to be despatched on or before the 14 September, from 11 September under the previous timetable. 
As always, more below the fold. Plus Ye Olde Arb Grids. 

Skyworth (751 HK): Partial Unconditional As Whitewash Waiver Approved

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<p>On the 17 June, <a href="https://www.smartkarma.com/entities/skyworth-digital-holdings-ltd" target="_blank" data-smartkarma-citation="entities:10941:1" rel="noopener">Skyworth Digital (751 HK)</a> surprised the market with a <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0617/2020061701026.pdf" target="_blank" rel="noopener">partial buyback</a> (&amp; not a full Offer)  - 12.83% of shares out or 392.8mn shares, at HK$2.80/share, a 32.1% premium to last close.</p>
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<p>Stephen Wong &amp; concert parties holding 40.88% of shares out and will not tender. Additional directors holding 0.9% have given an undertaking not to tender. With 58.22% of the register (or the Independent Shareholders) subject to the buyback, this implies a minimum pro-ration of 22.04%. The Independent Shareholders are required, by way of a special resolution (75% vote), to approve a whitewash waiver such that Wong is not obligated to make a general offer for shares not held. </p>
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<p>At HK$2.40, minimum pro-ration is a back end at HK$2.29 which isn't a huge discount, but with 14.9% accretion of EPS and 7.7% accretion of BVPS, the back-end should trade at perhaps 7.7-14.9% above where it was trading.</p>
<p>Separately, Skyworth <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0715/2020071500698.pdf" target="_blank" rel="noopener">announced</a> on the 15 July it had submitted a PN15 application to spin-off and list (non-wholly-owned) Shenzhen Coocaa Network Technology Company Limited (Coocaa), an internet-based operator of smart television systems.  There is no guarantee the spin-off will occur or not. Concurrent with the Coocaa announcement, Skyworth <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0715/2020071500686.pdf" target="_blank" rel="noopener">announced</a> a positive profit alert.</p>
<h2>The New News</h2>
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<p>On the 2 July, Skyworth announced it had <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0702/2020070202398.pdf" target="_blank" rel="noopener">delayed</a> the Offer Document until the 31 July, from 8 July originally. This was largely to be expected. The Offer doc is now <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0727/2020072700015.pdf" target="_blank" rel="noopener">out</a> and the Offer is open for acceptances. The SGM (for the whitewash waiver) will be held on the 2 September, with the close of the offer on the 2 September. The IFA considers the Offer to be fair and reasonable.</p>
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<p>As always, more below the fold. Plus <em><strong>Ye Olde Arb Grids</strong></em>. </p>
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On the 17 June, Skyworth Digital (751 HK) surprised the market with a partial buyback (&amp; not a full Offer)  - 12.83% of shares out or 392.8mn shares, at HK$2.80/share, a 32.1% premium to last close.


Stephen Wong &amp; concert parties holding 40.88% of shares out and will not tender. Additional directors holding 0.9% have given an undertaking not to tender. With 58.22% of the register (or the Independent Shareholders) subject to the buyback, this implies a minimum pro-ration of 22.04%. The Independent Shareholders are required, by way of a special resolution (75% vote), to approve a whitewash waiver such that Wong is not obligated to make a general offer for shares not held. 


At HK$2.40, minimum pro-ration is a back end at HK$2.29 which isn't a huge discount, but with 14.9% accretion of EPS and 7.7% accretion of BVPS, the back-end should trade at perhaps 7.7-14.9% above where it was trading.
Separately, Skyworth announced on the 15 July it had submitted a PN15 application to spin-off and list (non-wholly-owned) Shenzhen Coocaa Network Technology Company Limited (Coocaa), an internet-based operator of smart television systems.  There is no guarantee the spin-off will occur or not. Concurrent with the Coocaa announcement, Skyworth announced a positive profit alert.
The New News




On the 2 July, Skyworth announced it had delayed the Offer Document until the 31 July, from 8 July originally. This was largely to be expected. The Offer doc is now out and the Offer is open for acceptances. The SGM (for the whitewash waiver) will be held on the 2 September, with the close of the offer on the 2 September. The IFA considers the Offer to be fair and reasonable.






As always, more below the fold. Plus Ye Olde Arb Grids. 


Skyworth (751 HK): Partial Buyback Circular Despatched

Hong Kong

Jiu Rong Holdings Limited is an investment holding company. The Company engages in the research and development of TV and integration of tele-communications. Jiu Rong also engages in the manufacturing, sales, and installation of electronic water meters.

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Jiu Rong Holdings (2358 HK)

Skyworth (751 HK): Partial Unconditional As Whitewash Waiver Approved

On the 17 June, Skyworth Digital (751 HK) announced a partial buyback - 12.83% of shares out or 392.8mn shares, at HK$2.80/share, a 32.1% premium...

David Blennerhassett

Skyworth (751 HK): Partial Buyback Circular Despatched

On the 17 June, Skyworth Digital (751 HK) surprised the market with a partial buyback (& not a full Offer) - 12.83% of shares out or 392.8mn...

David Blennerhassett

Price Gauge

52-week Range

Market Cap (USDm)

P/E

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