Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Inner Mongolia Yitai Coal Company Ltd / Event-Driven

<ul>
<li>Timing is everything. Yesterday afternoon I flagged <a href="https://www.smartkarma.com/entities/inner-mongolia-yitai-coal-company-ltd" target="_blank" data-smartkarma-citation="entities:14904:1" rel="noopener">Inner Mongolia Yitai Coal Company Ltd (3948 HK)</a>'s possible H-share buyback at HK$17/share.</li>
<li>Roughly five hours later a firm HK$17.50/share Offer was announced. The Offer Price is final.</li>
<li>Other terms and approvals were largely as expected. Payment under the Offer may occur mid-August.</li>
</ul>


Timing is everything. Yesterday afternoon I flagged Inner Mongolia Yitai Coal Company Ltd (3948 HK)'s possible H-share buyback at HK$17/share.
Roughly five hours later a firm HK$17.50/share Offer was announced. The Offer Price is final.
Other terms and approvals were largely as expected. Payment under the Offer may occur mid-August.


Yitai Coal (3948 HK): H-Share Buyback Firmed At HK$17.50

<ul>
<li>On the 11th March, SOE-backed <a href="https://www.smartkarma.com/entities/cimc-vehicles-group-co-ltd" target="_blank" data-smartkarma-citation="entities:28012:1" rel="noopener">CIMC Vehicle Group Co Ltd (1839 HK)</a> announced a firm Offer at HK$7.50/H-share from its major shareholder, CIMC Group. Terms are final. </li>
<li>CIMC Group holds 74.24% of the H-shares and will abstain from voting at the H-share class meeting. 14.21% of the remaining 25.76% H-shares have given irrevocables supporting the Offer.</li>
<li>The Circular is now <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0326/2024032600780.pdf" target="_blank" rel="noopener">out</a>. The shareholder vote is the 18th April. Payment is the 13th May, IF unconditional on the first close. This looks done.</li>
</ul>


On the 11th March, SOE-backed CIMC Vehicle Group Co Ltd (1839 HK) announced a firm Offer at HK$7.50/H-share from its major shareholder, CIMC Group. Terms are final. 
CIMC Group holds 74.24% of the H-shares and will abstain from voting at the H-share class meeting. 14.21% of the remaining 25.76% H-shares have given irrevocables supporting the Offer.
The Circular is now out. The shareholder vote is the 18th April. Payment is the 13th May, IF unconditional on the first close. This looks done.


CIMC (1839 HK): 18th April Shareholder Vote

<ul>
<li>Back on the 9 May, <a href="https://www.smartkarma.com/entities/inner-mongolia-yitai-coal-company-ltd" target="_blank" data-smartkarma-citation="entities:14904:1" rel="noopener">Inner Mongolia Yitai Coal Company Ltd (3948 HK)</a> announced an H-share buyback at HK$17.50/share.</li>
<li>With no pre-conditions attached to this hybrid Scheme/Tender Offer, my expectation was this could be wrapped up by mid-August. </li>
<li>The dispatch of the Offer Document yesterday evening indicates even this timeline was conservative, with payment potentially occurring in the third week of July.</li>
</ul>


Back on the 9 May, Inner Mongolia Yitai Coal Company Ltd (3948 HK) announced an H-share buyback at HK$17.50/share.
With no pre-conditions attached to this hybrid Scheme/Tender Offer, my expectation was this could be wrapped up by mid-August. 
The dispatch of the Offer Document yesterday evening indicates even this timeline was conservative, with payment potentially occurring in the third week of July.


Yitai Coal (3948 HK): H-Shareholders To Vote on 30th June

<ul>
<li>Back on the 29 March, <a href="https://www.smartkarma.com/entities/inner-mongolia-yitai-coal-company-ltd" target="_blank" data-smartkarma-citation="entities:14904:1" rel="noopener">Inner Mongolia Yitai Coal Company Ltd (3948 HK)</a> announced a possible H-share buyback at HK$17/share, a 50.4% premium to the undisturbed price.</li>
<li>Yitai Coal is PRC-incorporated, therefore it is not afforded compulsory acquisition rights. To buy back ALL H-shares, either a Merger by Acquisition or a Voluntary Conditional Offer is required.</li>
<li>The Offer/buyback, should it proceed, is subject to various PRC regulatory approvals, including SAFE; together with approval from Yitai Coal's A/H shareholders. To date, the SAFE Registration has been completed.</li>
</ul>


Back on the 29 March, Inner Mongolia Yitai Coal Company Ltd (3948 HK) announced a possible H-share buyback at HK$17/share, a 50.4% premium to the undisturbed price.
Yitai Coal is PRC-incorporated, therefore it is not afforded compulsory acquisition rights. To buy back ALL H-shares, either a Merger by Acquisition or a Voluntary Conditional Offer is required.
The Offer/buyback, should it proceed, is subject to various PRC regulatory approvals, including SAFE; together with approval from Yitai Coal's A/H shareholders. To date, the SAFE Registration has been completed.


Yitai Coal (3948 HK): H-Share Offer (Likely) Imminent

Lanzhou Zhuangyuan Pasture / Event-Driven

<ul>
<li>On the 25 April, PRC dairy farmer <a href="https://www.smartkarma.com/entities/lanzhou-zhuangyuan-pasture-co-ltd" target="_blank" data-smartkarma-citation="entities:10174:1" rel="noopener">Lanzhou Zhuangyuan Pasture (1533 HK)</a> announced a Conditional Cash Offer for all its H-shares at $10.89/share. </li>
<li>This two-step voluntary cash offer incorporated a Scheme-like vote and a 90% tendering condition. </li>
<li>Shareholders voted for the transaction on the 29 June. The tendering condition has now been satisfied. The last day of trading is on the 1 August.  </li>
</ul>


On the 25 April, PRC dairy farmer Lanzhou Zhuangyuan Pasture (1533 HK) announced a Conditional Cash Offer for all its H-shares at $10.89/share. 
This two-step voluntary cash offer incorporated a Scheme-like vote and a 90% tendering condition. 
Shareholders voted for the transaction on the 29 June. The tendering condition has now been satisfied. The last day of trading is on the 1 August.  


Zhuangyuan Pasture (1533 HK): Offer Now Unconditional

China

Lanzhou Zhuangyuan Pasture Co Limited is a dairy company. The Company is a vertically integrated business that sells dairy related products.

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Lanzhou Zhuangyuan Pasture (1533 HK)

CIMC (1839 HK): 18th April Shareholder Vote

Trading at a gross/annualised spread of 3.3%/28.7% assuming late-May. I might pay up to HK$7.35-7.38. Below that would be preferable. This insight...

David Blennerhassett

Yitai Coal (3948 HK): H-Shareholders To Vote on 30th June

HK$17.50/share is a full and fair price. The tendering condition is the key risk to the deal. At HK$16.72/share, this is trading at a 4.7%/47.3%...

David Blennerhassett

Zhuangyuan Pasture (1533 HK): Offer Now Unconditional

The gross spread has narrowed to 0.5%. The Offer is now unconditional in all respects. This is not a super liquid arb situation. If not in, I'd be...

David Blennerhassett

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Yitai Coal (3948 HK): H-Share Buyback Firmed At HK$17.50

HK$17.50/share is a full and fair price. The tendering condition is the key risk to the deal. Buy up to HK$16.90/share, or 4%/15% gross/annualised,...

David Blennerhassett

CIMC (1839 HK): 18th April Shareholder Vote

Trading at a gross/annualised spread of 3.3%/28.7% assuming late-May. I might pay up to HK$7.35-7.38. Below that would be preferable. This insight...

David Blennerhassett

Yitai Coal (3948 HK): H-Shareholders To Vote on 30th June

HK$17.50/share is a full and fair price. The tendering condition is the key risk to the deal. At HK$16.72/share, this is trading at a 4.7%/47.3%...

David Blennerhassett

Yitai Coal (3948 HK): H-Share Offer (Likely) Imminent

I would expect a firm Offer soon. Optically, HK$17/share is a full price. Buy on any weakness. Currently trading at a gross spread to the...

David Blennerhassett

Zhuangyuan Pasture (1533 HK): Offer Now Unconditional

The gross spread has narrowed to 0.5%. The Offer is now unconditional in all respects. This is not a super liquid arb situation. If not in, I'd be...

David Blennerhassett