IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

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Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>The <a href="https://www.smartkarma.com/entities/jiangnan-group-ltd" target="_blank" data-smartkarma-citation="entities:9828:1" rel="noopener">Jiangnan (1366 HK)</a> scheme document is out with the court meeting scheduled for 15 May. The IFA considers the HK$0.40 per share offer to be fair and reasonable. </li>
<li>Key conditions include approval by at least 75% independent shareholders (&lt;10% rejection). The shareholder with a blocking stake has provided an irrevocable on 22 March.</li>
<li>This is a done deal. At the last close and for the 31 May payment, the gross and annualised spread is 3.9% and 44.0%, respectively.</li>
</ul>


The Jiangnan (1366 HK) scheme document is out with the court meeting scheduled for 15 May. The IFA considers the HK$0.40 per share offer to be fair and reasonable. 
Key conditions include approval by at least 75% independent shareholders (&lt;10% rejection). The shareholder with a blocking stake has provided an irrevocable on 22 March.
This is a done deal. At the last close and for the 31 May payment, the gross and annualised spread is 3.9% and 44.0%, respectively.


Jiangnan Group (1366 HK): Scheme Vote on 15 May

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

O-Net Technologies (Group)  / Event-Driven

<div>
<p>On the 8 July, <a href="https://www.smartkarma.com/entities/o-net-technologies-group-limited" target="_blank" data-smartkarma-citation="entities:16122:1" rel="noopener">O-Net Technologies (Group) (877 HK)</a>, a leader in the provision of high-technology products and optical networking components,  <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0708/2020070800600.pdf" target="_blank" rel="noopener">announced</a> an Offer by way of a Scheme, with a cancellation price of HK$6.50/share, a 23.57% premium to last close and a 43.18% premium to the six-month average close. The Offer price was final.</p>
<p>Na Qinglin (chairman of O-Net) (34.5% of shares out), <a href="https://www.smartkarma.com/entities/shenzhen-kaifa-technology-a" target="_blank" data-smartkarma-citation="entities:20393:1" rel="noopener">Shenzhen Kaifa Technology A (000021 CH)</a> (20.52%) and HC Capital (0.33%) are acting in concert, leaving 44.65% (372.408mn shares) in the hands of Disinterested Shareholders.</p>
<p>Therefore the blocking stake at the Scheme Meeting is 37.24mn shares or 4.465% of shares out. The 10% blocking stake is attached to ALL of the Scheme Shares held by the Disinterested Shareholders. The headcount test applies as O-Net is Cayman incorporated. </p>
</div>
<div>
<p>The Scheme Document is now <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0901/2020090101388.pdf" target="_blank" rel="noopener">out</a>. The Scheme Meeting will be held on 25 September with expected payment (assuming shareholders approve the Scheme) on the 27 October, just under a week past my initial timetable expectation. The IFA (Somerley) considers the offer to be "fair and reasonable."</p>
</div>
<div>
<p>This is a pretty clean deal. I'd get involved at a gross/annualised spread at 2.7%/19.2%.</p>
</div>
<div>
<p>As always, more below the fold.</p>
<hr>
<div>
<p><em>Past insights on O-Net</em></p>
</div>
<div>
<div>
<table class="table table-striped">
<tbody>
<tr>
<td style="width: 218.75px;">
<h3>Date</h3>
</td>
<td style="width: 484.782px;">
<h3>Insight</h3>
</td>
</tr>
<tr>
<td style="width: 218.75px;">7-Jul-20</td>
<td style="width: 484.782px;"><a href="https://skr.ma/nqHJk" target="_blank" rel="noopener">O-Net Tech (877 HK): Tripping The Light Fantastic</a></td>
</tr>
<tr>
<td style="width: 218.75px;">9-Jul-20</td>
<td style="width: 484.782px;"><a href="https://skr.ma/8Bd58" target="_blank" rel="noopener">O-Net (877 HK): Swish Switches Offer</a></td>
</tr>
</tbody>
</table>
</div>
</div>
</div>


On the 8 July, O-Net Technologies (Group) (877 HK), a leader in the provision of high-technology products and optical networking components,  announced an Offer by way of a Scheme, with a cancellation price of HK$6.50/share, a 23.57% premium to last close and a 43.18% premium to the six-month average close. The Offer price was final.
Na Qinglin (chairman of O-Net) (34.5% of shares out), Shenzhen Kaifa Technology A (000021 CH) (20.52%) and HC Capital (0.33%) are acting in concert, leaving 44.65% (372.408mn shares) in the hands of Disinterested Shareholders.
Therefore the blocking stake at the Scheme Meeting is 37.24mn shares or 4.465% of shares out. The 10% blocking stake is attached to ALL of the Scheme Shares held by the Disinterested Shareholders. The headcount test applies as O-Net is Cayman incorporated. 


The Scheme Document is now out. The Scheme Meeting will be held on 25 September with expected payment (assuming shareholders approve the Scheme) on the 27 October, just under a week past my initial timetable expectation. The IFA (Somerley) considers the offer to be "fair and reasonable."


This is a pretty clean deal. I'd get involved at a gross/annualised spread at 2.7%/19.2%.


As always, more below the fold.


Past insights on O-Net







Date


Insight



7-Jul-20
O-Net Tech (877 HK): Tripping The Light Fantastic


9-Jul-20
O-Net (877 HK): Swish Switches Offer







O-Net (877 HK): Offer Doc Out. Priced To Complete

China

Nanfang Communication Holdings Limited operates as a holding company. The Company, through its subsidiaries, manufactures communication optical fiber cables, switches, and other related products. Nanfang Communication Holdings serves customers worldwide.

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Nanfang Communication Holdin (1617 HK)

Jiangnan Group (1366 HK): Scheme Vote on 15 May

The IFA considers the offer to be fair and reasonable. This is a done deal. At the last close and for the 31 May payment, the gross and annualised...

Arun George

O-Net (877 HK): Offer Doc Out. Priced To Complete

On the 6 July, O-Net Technologies (Group) (877 HK), a leader in the provision of high-technology products and optical networking components,...

David Blennerhassett

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