Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Beijing Capital Land Ltd H / Event-Driven

<p>At long last - a summary of M&amp;A spreads (on deals discussed on Smartkarma) across Asia-Pacific.</p>
<p>I number 32, mostly firm, deals around the region.</p>
<p>This insight provides a quick summary of gross/annualised (where possible) spreads as at the last trading date, and how those spreads have changed over the last week; plus the next hard events over the coming weeks</p>
<p>More below the fold.</p>

At long last - a summary of M&amp;A spreads (on deals discussed on Smartkarma) across Asia-Pacific.
I number 32, mostly firm, deals around the region.
This insight provides a quick summary of gross/annualised (where possible) spreads as at the last trading date, and how those spreads have changed over the last week; plus the next hard events over the coming weeks
More below the fold.

Asia-Pac Weekly Risk Arb Summary: Sydney Aiport, Beijing Capital Land, IGO/Western Areas

Malaysia Airports Holdings / Event-Driven

<ul>
<li>Khazanah Nasional, the EPF,  the Abu Dhabi Investment Authority, and Global Infrastructure Partners, are offering to buy all shares not already owned in <strong><a href="https://www.smartkarma.com/entities/malaysia-airports-holdings-bhd" target="_blank" data-smartkarma-citation="entities:117:1" rel="noopener">Malaysia Airports Holdings (MAHB MK)</a></strong> at RM11.00/share.</li>
<li>The pre-conditional voluntary Offer price is a 5.77% premium to last close; but a life-time high. The Offeror consortium collectively holds 41.22% of shares out.</li>
<li>The pre-cons include regulatory approvals (in Malaysia, Turkey, Saudi Arabia, and Egypt). The Offer is subject to a 90% acceptance condition; which may be reduced. </li>
</ul>


Khazanah Nasional, the EPF,  the Abu Dhabi Investment Authority, and Global Infrastructure Partners, are offering to buy all shares not already owned in Malaysia Airports Holdings (MAHB MK) at RM11.00/share.
The pre-conditional voluntary Offer price is a 5.77% premium to last close; but a life-time high. The Offeror consortium collectively holds 41.22% of shares out.
The pre-cons include regulatory approvals (in Malaysia, Turkey, Saudi Arabia, and Egypt). The Offer is subject to a 90% acceptance condition; which may be reduced. 


Business On The Fly: Malaysia Airports (MAHB MK)'s RM11.00/Share Offer

<div>
<p>Back on the 3 June, Seaport Terminal, a wholly-owned vehicle of Tan Sri Syed Mokhtar Albukhary, <a href="https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3163886" target="_blank" rel="noopener">announced</a> an Offer for port operator and utility play <a href="https://www.smartkarma.com/entities/mmc-corp-bhd" target="_blank" data-smartkarma-citation="entities:9776:1" rel="noopener">MMC Corp Bhd (MMC MK)</a> at RM2.00/share, a 70.94% premium to last close. Seaport Terminal owned 51.76% of MMC.  The Offer was being done via a selective capital reduction and repayment (SCR) exercise.  The circular was <a href="https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3190946" target="_blank" rel="noopener">dispatched</a> on the 8 September with the EGM scheduled for the 30 September. Payment under the offer is expected towards the end of December.</p>
</div>
<div>
<p>This looked done, but has consistently traded wide to terms, largely on concerns as to how Permodalan Nasional (PNB) will vote.</p>
<p>In <em><a href="https://skr.ma/N86j6" target="_blank" rel="noopener">MMC Corp (MMC MK): This Is A Buy</a></em> I thought it was highly unlikely the Offer would have been pitched without first sounding out PNB. I recommended getting involved at the then gross spread of 13.6%.</p>
<p>Yesterday, shareholders overwhelmingly <a href="https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3197014" target="_blank" rel="noopener">approved</a> the SCR - 85% of the disinterested shareholders voted and 99.7519% in value to the votes attached to those shares approved the special resolution. Therefore, PNB gave its blessing.</p>
<p>Now it's a question of when the High Court will sanction the deal.</p>
</div>
<div>
<p>More below the fold.</p>
</div>


Back on the 3 June, Seaport Terminal, a wholly-owned vehicle of Tan Sri Syed Mokhtar Albukhary, announced an Offer for port operator and utility play MMC Corp Bhd (MMC MK) at RM2.00/share, a 70.94% premium to last close. Seaport Terminal owned 51.76% of MMC.  The Offer was being done via a selective capital reduction and repayment (SCR) exercise.  The circular was dispatched on the 8 September with the EGM scheduled for the 30 September. Payment under the offer is expected towards the end of December.


This looked done, but has consistently traded wide to terms, largely on concerns as to how Permodalan Nasional (PNB) will vote.
In MMC Corp (MMC MK): This Is A Buy I thought it was highly unlikely the Offer would have been pitched without first sounding out PNB. I recommended getting involved at the then gross spread of 13.6%.
Yesterday, shareholders overwhelmingly approved the SCR - 85% of the disinterested shareholders voted and 99.7519% in value to the votes attached to those shares approved the special resolution. Therefore, PNB gave its blessing.
Now it's a question of when the High Court will sanction the deal.


More below the fold.


MMC Corp (MMC MK): The Vote Gets Up. Now For Court Sanctioning

<div>
<p>On the 3 June, Seaport Terminal (Johore) Sdn Bhd, a wholly-owned entity of Tan Sri Syed Mokhtar Albukhary, <a href="https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3163886" target="_blank" rel="noopener">announced</a> an Offer for port operator and utility play <a href="https://www.smartkarma.com/entities/mmc-corp-bhd" target="_blank" data-smartkarma-citation="entities:9776:1" rel="noopener">MMC Corp Bhd (MMC MK)</a> at RM2.00/share, a 70.94% premium to last close. Seaport Terminal owns 51.76% of MMC.  The Offer is being done via a selective capital reduction and repayment (SCR) exercise. </p>
</div>
<div>On the 4 August RHB <a href="https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3181001" target="_blank" rel="noopener">announced</a>, on behalf MMC's board, the SCR will be tabled to shareholders at a forthcoming EGM.</div>
<div></div>
<div>
<p>The circular was <a href="https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3190946" target="_blank" rel="noopener">dispatched</a> on the 8 September with the EGM scheduled for the 30 September. Payment under the offer is expected towards the end of December.</p>
<p>The independent adviser, Alliance Investment Bank, deemed the Offer not fair, but reasonable.</p>
<p>This still looks done. But this is trading wide, with a largish downward move on decent volume earlier this week. The key risk is how PNB will vote.</p>
</div>
<div>
<p>More below the fold.</p>
</div>


On the 3 June, Seaport Terminal (Johore) Sdn Bhd, a wholly-owned entity of Tan Sri Syed Mokhtar Albukhary, announced an Offer for port operator and utility play MMC Corp Bhd (MMC MK) at RM2.00/share, a 70.94% premium to last close. Seaport Terminal owns 51.76% of MMC.  The Offer is being done via a selective capital reduction and repayment (SCR) exercise. 

On the 4 August RHB announced, on behalf MMC's board, the SCR will be tabled to shareholders at a forthcoming EGM.


The circular was dispatched on the 8 September with the EGM scheduled for the 30 September. Payment under the offer is expected towards the end of December.
The independent adviser, Alliance Investment Bank, deemed the Offer not fair, but reasonable.
This still looks done. But this is trading wide, with a largish downward move on decent volume earlier this week. The key risk is how PNB will vote.


More below the fold.


<div>
<p>Back on the 3 June, Seaport Terminal (Johore) Sdn Bhd, a wholly-owned entity of Tan Sri Syed Mokhtar Albukhary, <a href="https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3163886" target="_blank" rel="noopener">announced</a> an Offer for port operator and utility play <a href="https://www.smartkarma.com/entities/mmc-corp-bhd" target="_blank" data-smartkarma-citation="entities:9776:1" rel="noopener">MMC Corp Bhd (MMC MK)</a>  at RM2.00/share, a 70.94% premium to last close. Seaport Terminal owns 51.76% of MMC.  The Offer is being done via a selective capital reduction and repayment (SCR) exercise. </p>
</div>
<div>
<p>The deal looked - and looks - clean. It was just a question of timing, and SCRs often average around six months to complete.</p>
<p>Apart from an announcement on the <a href="https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3175290" target="_blank" rel="noopener">14 July</a> extending the date in which the board intends to respond to Seaport proposal, there was no further development.</p>
<p>Late yesterday, RHB <a href="https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3181001" target="_blank" rel="noopener">announced</a>, on behalf MMC's board, the SCR will be tabled to shareholders at a forthcoming EGM.</p>
<p>This gets the ball rolling, with an indicative completion date in the 4Q21.</p>
</div>
<div>
<p>More below the fold.</p>
</div>


Back on the 3 June, Seaport Terminal (Johore) Sdn Bhd, a wholly-owned entity of Tan Sri Syed Mokhtar Albukhary, announced an Offer for port operator and utility play MMC Corp Bhd (MMC MK)  at RM2.00/share, a 70.94% premium to last close. Seaport Terminal owns 51.76% of MMC.  The Offer is being done via a selective capital reduction and repayment (SCR) exercise. 


The deal looked - and looks - clean. It was just a question of timing, and SCRs often average around six months to complete.
Apart from an announcement on the 14 July extending the date in which the board intends to respond to Seaport proposal, there was no further development.
Late yesterday, RHB announced, on behalf MMC's board, the SCR will be tabled to shareholders at a forthcoming EGM.
This gets the ball rolling, with an indicative completion date in the 4Q21.


More below the fold.


MMC Corp (MMC MK): Board Support, At Last

Malaysia

MMC Corporation Berhad is an investment holding company. The Company, through its subsidiaries and associated company, operates a container port, provides power generation, distributes natural gas, and provides engineering and construction services.

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MMC Corp Bhd (MMC MK)

Asia-Pac Weekly Risk Arb Summary: Sydney Aiport, Beijing Capital Land, IGO/Western Areas

This insight provides a quick summary of gross/annualised spreads as at the last trading day, and how those spreads have changed over the last...

David Blennerhassett

MMC Corp (MMC MK): The Vote Gets Up. Now For Court Sanctioning

The SCR is done. Now we wait for High Court approval. Trading at a gross/annualised spread of 2.6%/10.7%, which is a similar spread for precedent...

David Blennerhassett

MMC Corp (MMC MK): This Is A Buy

Trading at a gross/annualised spread of 13.6%/60.2%. The risk - PNB. This Offer cannot get up without their support, and therefore they had to...

David Blennerhassett

MMC Corp (MMC MK): Board Support, At Last

Trading at a gross/annualised spread of 10.5%/31.2%. I would expect the circular to be dispatched within a month. I'd get involved here

David Blennerhassett

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Asia-Pac Weekly Risk Arb Summary: Sydney Aiport, Beijing Capital Land, IGO/Western Areas

This insight provides a quick summary of gross/annualised spreads as at the last trading day, and how those spreads have changed over the last...

David Blennerhassett

Business On The Fly: Malaysia Airports (MAHB MK)'s RM11.00/Share Offer

Trading at a 8% gross spread to terms. With the Offeror consortium having the flexibility to reduce the acceptance condition; or bump terms, I'd be...

David Blennerhassett

MMC Corp (MMC MK): The Vote Gets Up. Now For Court Sanctioning

The SCR is done. Now we wait for High Court approval. Trading at a gross/annualised spread of 2.6%/10.7%, which is a similar spread for precedent...

David Blennerhassett

MMC Corp (MMC MK): This Is A Buy

Trading at a gross/annualised spread of 13.6%/60.2%. The risk - PNB. This Offer cannot get up without their support, and therefore they had to...

David Blennerhassett

MMC Corp (MMC MK): Board Support, At Last

Trading at a gross/annualised spread of 10.5%/31.2%. I would expect the circular to be dispatched within a month. I'd get involved here

David Blennerhassett