Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

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<p>This week in StubWorld ...</p>
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<a href="https://www.smartkarma.com/entities/kwg-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:12601:1" rel="noopener"></a>Reportedly <a href="https://www.smartkarma.com/entities/las-vegas-sands-corp" target="_blank" data-smartkarma-citation="entities:807:1" rel="noopener">Las Vegas Sands (LVS US)</a> is exploring the sale of its Las Vegas hotel-casinos, the result of which would concentrate its gaming portfolio in Macau and Singapore. <br><br><a href="https://www.smartkarma.com/entities/cellnex-telecom-sau" target="_blank" data-smartkarma-citation="entities:21258:1" rel="noopener">Cellnex Telecom Sau (CLNX SM)</a> is understood to be in advanced talks to acquire <a href="https://www.smartkarma.com/entities/ck-hutchison-holdings-ltd" target="_blank" data-smartkarma-citation="entities:132:1" rel="noopener">CK Hutchison Holdings (1 HK)</a>’s European wireless tower business.</div>
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<p>Preceding my comments on LVS and CK Hutch are the weekly setup/unwind tables for Asia-Pacific Holdcos.</p>
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<p>These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold - the $ value of the holding/opco held, over the parent’s market capitalisation, expressed as a % - of at least 20%.</p>
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This week in StubWorld ...



Reportedly Las Vegas Sands (LVS US) is exploring the sale of its Las Vegas hotel-casinos, the result of which would concentrate its gaming portfolio in Macau and Singapore.   Cellnex Telecom Sau (CLNX SM) is understood to be in advanced talks to acquire CK Hutchison Holdings (1 HK)’s European wireless tower business.


Preceding my comments on LVS and CK Hutch are the weekly setup/unwind tables for Asia-Pacific Holdcos.




These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold - the $ value of the holding/opco held, over the parent’s market capitalisation, expressed as a % - of at least 20%.




StubWorld: Macau/Sing Focus As LVS To Ditch LV; CK Hutch In Tower Talks

<p> Back on the 11 September, shares in Macau gaming service provider <a href="https://www.smartkarma.com/entities/macau-legend-development-ltd" target="_blank" data-smartkarma-citation="entities:16631:1" rel="noopener">Macau Legend Development (1680 HK)</a> ("MLD") were suspended "<em><a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0914/2020091101464.pdf" target="_blank" rel="noopener">pursuant</a> to the Hong Kong Code on Takeovers and Mergers"</em>.</p>
<p>The same day, Levo Chan Weng-lin, chief executive of Macau's junket brand Tak Chun Group, bought a 20.65% stake (~US$173mn) according to the HKEx <a href="https://di.hkex.com.hk/di/NSNoticeSSList.aspx?sa2=ns&amp;sid=87469&amp;corpn=Macau+Legend+Development+Ltd.&amp;sd=16/09/2019&amp;ed=16/09/2020&amp;cid=0&amp;sa1=cl&amp;scsd=16%2f09%2f2019&amp;sced=16%2f09%2f2020&amp;sc=1680&amp;src=MAIN&amp;lang=EN&amp;" target="_blank" rel="noopener">disclosures</a>. </p>
<p>That acquisition has now been clarified with this morning's <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0921/2020092100034.pdf" target="_blank" rel="noopener">announcement</a> that Chan had entered into a SPA on the 11 September with David Chow and Sheldon Trainor De Girolamo, to acquire 20.65% of shares out or 1.280bn shares.</p>
<p>Because of a prior agreement entered into between Chow inter alia, who are collectively known as the Covenantors (holding &gt;51% of shares out), following the completion of the SPA, Chan is deemed to be acting concert with the Covenantors <em>and</em> De Girolamo, and will therefore be obligated to make an unconditional mandatory general offer.</p>
<p>The MGO Price will be HK$1.05/share, the same price Chan paid for his 20.65% stake. That's a 9.34% premium to the last close.</p>
<p>As always, more below the fold.</p>

 Back on the 11 September, shares in Macau gaming service provider Macau Legend Development (1680 HK) ("MLD") were suspended "pursuant to the Hong Kong Code on Takeovers and Mergers".
The same day, Levo Chan Weng-lin, chief executive of Macau's junket brand Tak Chun Group, bought a 20.65% stake (~US$173mn) according to the HKEx disclosures. 
That acquisition has now been clarified with this morning's announcement that Chan had entered into a SPA on the 11 September with David Chow and Sheldon Trainor De Girolamo, to acquire 20.65% of shares out or 1.280bn shares.
Because of a prior agreement entered into between Chow inter alia, who are collectively known as the Covenantors (holding &gt;51% of shares out), following the completion of the SPA, Chan is deemed to be acting concert with the Covenantors and De Girolamo, and will therefore be obligated to make an unconditional mandatory general offer.
The MGO Price will be HK$1.05/share, the same price Chan paid for his 20.65% stake. That's a 9.34% premium to the last close.
As always, more below the fold.

Macau Legend (1680 HK): Mandatory General Offer

Global Gaming and Casinos Industry Specialist, Casino Business Review LLC

Howard J Klein

Global Gaming and Casinos Industry Specialist

Equity Bottom-Up

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<li>As we near Q4, we look for superior prospects for a speedier ramp for Las Vegas Sands/</li>
<li>LVS will report 3Q20 results October 21-26. Numbers could reveal early late September upticks in revenue and occupancy that could move shares.</li>
<li>Our Asia panel of associates likes LVS best among peers for earlier ramp up beginning with strong Golden Week results on average win per gaming position and hotel REVPAR.</li>
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As we near Q4, we look for superior prospects for a speedier ramp for Las Vegas Sands/
LVS will report 3Q20 results October 21-26. Numbers could reveal early late September upticks in revenue and occupancy that could move shares.
Our Asia panel of associates likes LVS best among peers for earlier ramp up beginning with strong Golden Week results on average win per gaming position and hotel REVPAR.


Asia Gaming Outlook 2021: Las Vegas Sands at Current Price Looks like a Smart Entry Pre-Golden Week

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<li>Concerns over solvency not an issue as mainstream properties have strong cash reserves, but post virus customer loyalties may waver and upset market share metrics.</li>
<li>Residual fears among inoculated populations remains an unknown, but wariness must be addressed as part of marketing strategy.</li>
<li>Measuring differences in brand loyalties and competition in pent up demand atmosphere need to be a key management consideration in recapturing pre-virus EBITDA performance.</li>
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Concerns over solvency not an issue as mainstream properties have strong cash reserves, but post virus customer loyalties may waver and upset market share metrics.
Residual fears among inoculated populations remains an unknown, but wariness must be addressed as part of marketing strategy.
Measuring differences in brand loyalties and competition in pent up demand atmosphere need to be a key management consideration in recapturing pre-virus EBITDA performance.


Post Virus Challenges for Macau: New Strategic Focus Needed to Revive Customer Loyalties

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<li>Last April one of our consulting clients moved a hefty position in Las Vegas Sands at $43. It resulted in a solid profit at $52 when it was sold on June 10th.</li>
<li>The stock moved 20% in less than a month and a half despite virus lockdowns.</li>
<li>LVS has now traded back down to ~$44. We maintain a BUY outlook for a second round entry point despite continuing virus challenges.</li>
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Last April one of our consulting clients moved a hefty position in Las Vegas Sands at $43. It resulted in a solid profit at $52 when it was sold on June 10th.
The stock moved 20% in less than a month and a half despite virus lockdowns.
LVS has now traded back down to ~$44. We maintain a BUY outlook for a second round entry point despite continuing virus challenges.


Las Vegas Sands: Our Hedge Fund Client's Bet Paid off Handsomely--And More to Come

United States

Las Vegas Sands Corp. owns and operates casino resorts and convention centers. The Company operates in the United States, Macau and Singapore. Las Vegas Sand Corp's casinos offer a wide range of gaming activities and entertainment as well as overnight accommodations, while its expo centers host a wide range of entertainment shows, expositions, and other activities.

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Las Vegas Sands (LVS US)

StubWorld: Macau/Sing Focus As LVS To Ditch LV; CK Hutch In Tower Talks

Reportedly Las Vegas Sands (LVS US) is exploring the sale of its Las Vegas hotel-casinos, the result of which would concentrate its gaming...

David Blennerhassett

Macau Legend (1680 HK): Mandatory General Offer

Levo Chan Weng-lin, chief executive of Macau's junket brand Tak Chun Group, bought a 20.65%t stake (~US$173mn) in Macau Legend Development (1680...

David Blennerhassett

Asia Gaming Outlook 2021: Las Vegas Sands at Current Price Looks like a Smart Entry Pre-Golden Week

As we near Q4, we look for

Howard J Klein

Post Virus Challenges for Macau: New Strategic Focus Needed to Revive Customer Loyalties

Concerns over solvency not an issue as mainstream properties have strong cash reserves, but post virus customer loyalties may waver and upset...

Howard J Klein

Las Vegas Sands: Our Hedge Fund Client's Bet Paid off Handsomely--And More to Come

Last April one of our consulting clients moved a hefty position in Las Vegas Sands at $43. It resulted in a solid profit at $52 when it was sold...

Howard J Klein

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