Research from SooChow CSSD Capital Markets (Asia), SCCM Asia Research

SCCM Asia Research

Research from SooChow CSSD Capital Markets (Asia)

Thematic (Sector/Industry)

<h2>Singapore</h2><h3><a href="https://www.smartkarma.com/entities/lhn-ltd" target="_blank" data-smartkarma-citation="entities:27234" rel="noopener">LHN Ltd (LHN SP)</a> revamps 1557 Keppel Road into office and Co-living spaces</h3><p>Once the nine-years lease was up in Dec19 for 1557 Keppel Road, LHN, the master tenant of the state land, decided to repurpose the place on a fresh term of lease into an integrated space comprising office and co-living spaces, occupying over 96,299sqft. The renovations took about 10 months, with delays due to the pandemic. The co-living business at the development runs under LHN’s brand Coliwoo, which has a total of over 800 rooms in the city-state. Coliwoo also operates in other areas like Balestier, Boon Lay and Bukit Timah. To date, LHN says 50% of its office spaces are already leased out. Confirmed tenants include a digital media and financial consultancy firm, while arrangements are still pending with three other businesses: an architectural firm, a digital media consultancy and a FinTech company. There will also be a gym operated by Anytime Fitness, and an F&amp;B eatery catering to the office and residential tenants within the development. At Coliwoo 1557 Keppel Road, LHN has also carved out 47 co-living units ranging from 180-260sqft across two residential blocks. Due to pandemic-led lockdowns, Coliwoo has seen demand from locals increase to 30% from 10% previously.</p>

SingaporeLHN Ltd (LHN SP) revamps 1557 Keppel Road into office and Co-living spacesOnce the nine-years lease was up in Dec19 for 1557 Keppel Road, LHN, the master tenant of the state land, decided to repurpose the place on a fresh term of lease into an integrated space comprising office and co-living spaces, occupying over 96,299sqft. The renovations took about 10 months, with delays due to the pandemic. The co-living business at the development runs under LHN’s brand Coliwoo, which has a total of over 800 rooms in the city-state. Coliwoo also operates in other areas like Balestier, Boon Lay and Bukit Timah. To date, LHN says 50% of its office spaces are already leased out. Confirmed tenants include a digital media and financial consultancy firm, while arrangements are still pending with three other businesses: an architectural firm, a digital media consultancy and a FinTech company. There will also be a gym operated by Anytime Fitness, and an F&amp;B eatery catering to the office and residential tenants within the development. At Coliwoo 1557 Keppel Road, LHN has also carved out 47 co-living units ranging from 180-260sqft across two residential blocks. Due to pandemic-led lockdowns, Coliwoo has seen demand from locals increase to 30% from 10% previously.

ASEAN Builder's Scoop (21May21) - LHN unveils 1557KR Co-living and office space

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Zhuhai Holdings Investment / Event-Driven

<p>Back on the 22 January, <a href="https://www.smartkarma.com/entities/zhuhai-holdings-investment-group-ltd" target="_blank" data-smartkarma-citation="entities:17863:1" rel="noopener">Zhuhai Holdings Investment (908 HK)</a> <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0122/2021012201252.pdf" target="_blank" rel="noopener">announced</a> a pre-conditional privatisation by way of a Scheme from Zhuhai SASAC's Longway Services Group<strong>.</strong></p>
<p>The Offer price was HK$3.06/share, a 37.84% premium to last close, a 52.39% premium to the average closing price over the previous 30 trading days, and a lifetime high. The Offer price will not be increased. No dividend is expected to be declared during the Offer period. </p>
<div>
<p>Pre-conditions from NDRC, MoC, and SAFE were satisfied by the <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0322/2021032200507.pdf" target="_blank" rel="noopener">22 March</a>. </p>
</div>
<div>The <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0420/2021042001483.pdf" target="_blank" rel="noopener">Scheme Document</a> is now out, with the Court Meeting/SGM will be held on the 18 May. The IFA says fair &amp; reasonable.</div>
<div></div>
<div>
<p>As always, more below the fold. </p>
</div>

Back on the 22 January, Zhuhai Holdings Investment (908 HK) announced a pre-conditional privatisation by way of a Scheme from Zhuhai SASAC's Longway Services Group.
The Offer price was HK$3.06/share, a 37.84% premium to last close, a 52.39% premium to the average closing price over the previous 30 trading days, and a lifetime high. The Offer price will not be increased. No dividend is expected to be declared during the Offer period. 

Pre-conditions from NDRC, MoC, and SAFE were satisfied by the 22 March. 

The Scheme Document is now out, with the Court Meeting/SGM will be held on the 18 May. The IFA says fair &amp; reasonable.


As always, more below the fold. 


Zhuhai Holdings (908 HK): SGM On The 18 May

<p>On the 21 January 2020, <a href="https://www.smartkarma.com/entities/zhuhai-holdings-investment-group-ltd" target="_blank" data-smartkarma-citation="entities:17863:1" rel="noopener">Zhuhai Holdings Investment (908 HK)</a> (ZHI) <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0122/2020012200085.pdf" target="_blank" rel="noopener">announced</a> Longway Services Group Limited (the Offeror and wholly-owned by Zhuhai SASAC), and a 25.73% shareholder of ZHI, had entered into a SPA with <a href="https://www.smartkarma.com/entities/lbs-bina-group-bhd" target="_blank" data-smartkarma-citation="entities:12060:1" rel="noopener">Lbs Bina Group (LBS MK)</a>, to acquire LBS' 5.53% stake in ZHI. The sale price was $1.21/share, a 0.83% premium to last close. Upon the completion of the SPA, the Concert Group (including ZJ Holdings' direct stake of 16.47%) would own 47.95%, up from 42.42%. This would trigger a mandatory conditional cash offer by the Concert Group under Rule 26.1 of the Takeovers Code. The Offer was discussed in <em><a href="https://skr.ma/1eyKn" target="_blank" rel="noopener">Zhuhai Holdings: SOE Offer For Tourist Play</a></em>.</p>
<p>The SPA was completed on the <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0122/2020012200940.pdf" target="_blank" rel="noopener">22 January</a> and became a <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0330/2020033002505.pdf" target="_blank" rel="noopener">mandatory unconditional offer</a> after the Offeror acquired further shares in the market, taking the collective holding above 50%. The Composite Doc was issued on the <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0417/2020041700077.pdf" target="_blank" rel="noopener">17 April</a> last year, with the IFA saying the Offer was fair and reasonable. The Offer <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0508/2020050801074.pdf" target="_blank" rel="noopener">closed</a> on the 8 May with Zhuhai SASAC controlling 61.5%, and public shareholders holding  21.33%. The public float was restored above 25% on <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0528/2020052800911.pdf" target="_blank" rel="noopener">the 28 May</a>. </p>
<h3><strong>The New News</strong></h3>
<div>
<p>After ZHI's shares were <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0118/2021011800105.pdf" target="_blank" rel="noopener">suspended</a> ahead of trading on the 18 January "<em>pursuant to The Codes on Takeovers and Mergers which constitute inside information of the Company</em>". ZHI has now <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0122/2021012201252.pdf" target="_blank" rel="noopener">announced</a> a pre-conditional privatisation by way of Scheme from Zhuhai SASAC's Longway Services Group.</p>
</div>
<div>
<p>The Offer price is HK$3.06/share, a 37.84% premium to last close, a 52.39% premium to the average closing price over the previous 30 trading days, and a life-time high. The Offer price will not be increased. No dividend has been declared, nor is one expected to be declared during the Offer period. </p>
<p>Pre-conditions include signs offs from NDRC, MoC, and SAFE. As an SOE is making the Offer, these approvals should be rubber-stamped. </p>
<p>The shareholding into ZHI remains unchanged since the float was restored last May. Zhuhai SASAC indirectly holds 61.5% of shares out. Scheme shareholders comprise 549.6mn shares or 38.5% of shares out. </p>
</div>
<div>
<p>Key Scheme conditions include at least 75% of Independent Scheme Shares voting FOR &amp; not more than 10% of the votes attached to ALL the Independent Scheme Shares against. Therefore the blocking stake is 49.6mn shares, or 3.85% of shares out. No single shareholder has declared such a stake. No irrevocables have been given.</p>
</div>
<div>
<p>The headcount test applies as ZHI is Bermuda-incorporated. </p>
</div>
<div>
<p>This deal looks done.</p>
</div>
<div>
<p>As always, more below the fold. </p>
</div>

On the 21 January 2020, Zhuhai Holdings Investment (908 HK) (ZHI) announced Longway Services Group Limited (the Offeror and wholly-owned by Zhuhai SASAC), and a 25.73% shareholder of ZHI, had entered into a SPA with Lbs Bina Group (LBS MK), to acquire LBS' 5.53% stake in ZHI. The sale price was $1.21/share, a 0.83% premium to last close. Upon the completion of the SPA, the Concert Group (including ZJ Holdings' direct stake of 16.47%) would own 47.95%, up from 42.42%. This would trigger a mandatory conditional cash offer by the Concert Group under Rule 26.1 of the Takeovers Code. The Offer was discussed in Zhuhai Holdings: SOE Offer For Tourist Play.
The SPA was completed on the 22 January and became a mandatory unconditional offer after the Offeror acquired further shares in the market, taking the collective holding above 50%. The Composite Doc was issued on the 17 April last year, with the IFA saying the Offer was fair and reasonable. The Offer closed on the 8 May with Zhuhai SASAC controlling 61.5%, and public shareholders holding  21.33%. The public float was restored above 25% on the 28 May. 
The New News

After ZHI's shares were suspended ahead of trading on the 18 January "pursuant to The Codes on Takeovers and Mergers which constitute inside information of the Company". ZHI has now announced a pre-conditional privatisation by way of Scheme from Zhuhai SASAC's Longway Services Group.


The Offer price is HK$3.06/share, a 37.84% premium to last close, a 52.39% premium to the average closing price over the previous 30 trading days, and a life-time high. The Offer price will not be increased. No dividend has been declared, nor is one expected to be declared during the Offer period. 
Pre-conditions include signs offs from NDRC, MoC, and SAFE. As an SOE is making the Offer, these approvals should be rubber-stamped. 
The shareholding into ZHI remains unchanged since the float was restored last May. Zhuhai SASAC indirectly holds 61.5% of shares out. Scheme shareholders comprise 549.6mn shares or 38.5% of shares out. 


Key Scheme conditions include at least 75% of Independent Scheme Shares voting FOR &amp; not more than 10% of the votes attached to ALL the Independent Scheme Shares against. Therefore the blocking stake is 49.6mn shares, or 3.85% of shares out. No single shareholder has declared such a stake. No irrevocables have been given.


The headcount test applies as ZHI is Bermuda-incorporated. 


This deal looks done.


As always, more below the fold. 


Zhuhai Holdings (908 HK): Zhuhai SASAC Reloads With Scheme Offer

<p>On the 21 January, <a href="https://www.smartkarma.com/entities/zhuhai-holdings-investment-group-ltd" target="_blank" data-smartkarma-citation="entities:17863:1" rel="noopener">Zhuhai Holdings Investment (908 HK)</a> (ZHI) <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0122/2020012200085.pdf" target="_blank" rel="noopener">announced</a> a wholly-owned subsidiary of SOE ZJ Holdings (the Offeror), and a 25.73% shareholder of ZHI, had entered into a SPA with <a href="https://www.smartkarma.com/entities/lbs-bina-group-bhd" target="_blank" data-smartkarma-citation="entities:12060:1" rel="noopener">Lbs Bina Group (LBS MK)</a>, to acquire LBS' 5.53% stake in ZHI. The sale price was $1.21/share, a 0.83% premium to last close.</p>
<p>Upon the completion of the SPA, the Concert Group (including ZJ Holdings' direct stake of 16.47%) would own 47.95%, up from 42.42%. This will trigger a mandatory conditional cash offer by the Convert Group under Rule 26.1 of the Takeovers Code.</p>
<p>ZHI operations include port facilities and ferry services in China; the operation of Jiuzhou Blue Sea Jet and Blue Marine Tourism (a ferry service); and the management of holiday resort hotel and theme/amusement park.</p>
<p>The SPA was <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0122/2020012200940.pdf" target="_blank" rel="noopener">completed</a> on the 22 January. The dispatch of the Composite Document has been pushed back to the <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0210/2020021000293.pdf" target="_blank" rel="noopener">20 April</a>. The MGO, also at HK$1.21/share, is conditional on the Concert Group holding 50% of shares out at the close of the Offer.</p>
<p>What was probably just an opportunity to take out a large shareholder, may ultimately result in ZJ Holdings taking majority control in the company, as ZHI, which is largely a tourist play, faces an uncertain earnings outlook. A <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0227/2020022700871.pdf" target="_blank" rel="noopener">profit warning</a> on the 27 Feb provides early guidance on ZHI's financials.</p>

On the 21 January, Zhuhai Holdings Investment (908 HK) (ZHI) announced a wholly-owned subsidiary of SOE ZJ Holdings (the Offeror), and a 25.73% shareholder of ZHI, had entered into a SPA with Lbs Bina Group (LBS MK), to acquire LBS' 5.53% stake in ZHI. The sale price was $1.21/share, a 0.83% premium to last close.
Upon the completion of the SPA, the Concert Group (including ZJ Holdings' direct stake of 16.47%) would own 47.95%, up from 42.42%. This will trigger a mandatory conditional cash offer by the Convert Group under Rule 26.1 of the Takeovers Code.
ZHI operations include port facilities and ferry services in China; the operation of Jiuzhou Blue Sea Jet and Blue Marine Tourism (a ferry service); and the management of holiday resort hotel and theme/amusement park.
The SPA was completed on the 22 January. The dispatch of the Composite Document has been pushed back to the 20 April. The MGO, also at HK$1.21/share, is conditional on the Concert Group holding 50% of shares out at the close of the Offer.
What was probably just an opportunity to take out a large shareholder, may ultimately result in ZJ Holdings taking majority control in the company, as ZHI, which is largely a tourist play, faces an uncertain earnings outlook. A profit warning on the 27 Feb provides early guidance on ZHI's financials.

Zhuhai Holdings: SOE Offer For Tourist Play

Deciphering real estate markets globally., Rems Advisors

TAN Kok Keong

Deciphering real estate markets globally.

Rems Advisors

<p>We visited Forest City in Iskandar Malaysia over the weekend following reports of the Chinese government's order for <a href="https://www.smartkarma.com/entities/5225" target="_blank" data-smartkarma-citation="entities:5225:1">Country Garden Holdings Co (2007 HK)</a> to close all its showrooms in China.  The following are some observations from us, post-visit. </p><h2>Key observations from the visit</h2><p>The following are our key observations and feedback from agents/visitors we spoke to: </p><ul><li>
<strong>The number of visitors shrank: </strong>The sale agent we met told us that the news of closing down of all showrooms in China really hurt their…</li></ul>

We visited Forest City in Iskandar Malaysia over the weekend following reports of the Chinese government's order for Country Garden Holdings Co (2007 HK) to close all its showrooms in China.  The following are some observations from us, post-visit. Key observations from the visitThe following are our key observations and feedback from agents/visitors we spoke to: 
The number of visitors shrank: The sale agent we met told us that the news of closing down of all showrooms in China really hurt their…

Seeing the Forest for the Trees in Malaysia - Country Garden

Malaysia

LBS Bina Group Berhad is a management and investment holding company.  The Company, through its subsidiaries, operates property development and investment. LBS also provides project management and contractor services for property development, turf and landscaping contracting, insurance services, sells motor vehicles, and trades building materials.

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LBS Bina Group (LBS MK)

ASEAN Builder's Scoop (21May21) - LHN unveils 1557KR Co-living and office space

LHN unveils 1557KR Co-living and office space; SUN rolls out tenant supports; HK starts REIT subsidy to rival SG, Japan; AGI weak 1Q21 results; LBS...

SCCM Asia Research

Zhuhai Holdings (908 HK): SGM On The 18 May

A solid premium to last close and a life-time high. The revised NAV was to be expected. I don't see that uplift in the NAV as a basis for...

David Blennerhassett

Zhuhai Holdings (908 HK): Zhuhai SASAC Reloads With Scheme Offer

A solid premium to last close and a life-time high - this is priced to complete. I'd buy up to around HK$2.92/share - or ~4.8%/~15.0% gross...

David Blennerhassett

Zhuhai Holdings: SOE Offer For Tourist Play

On the 21 January, Zhuhai Holdings Investment (908 HK) (ZHI) announced a wholly-owned subsidiary of SOE ZJ Holdings (the Offeror), and a 25.73%...

David Blennerhassett

Seeing the Forest for the Trees in Malaysia - Country Garden

We visited Forest City in Iskandar Malaysia over the weekend following reports of the Chinese government's order for Country Garden Holdings Co...

TAN Kok Keong

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