Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Thematic (Sector/Industry)

<ul>
<li>In officially decided cases concerning dissentient shareholders in privatised US-listed China plays, the uplift to the merger price versus time value of money and legal costs, is less than ideal. </li>
<li>The outcome for each case will turn on the underlying facts. But it would <em>appear </em><strong><a href="https://www.smartkarma.com/entities/ikang-healthcare-group-adr" target="_blank" data-smartkarma-citation="entities:741:1" rel="noopener">iKang Healthcare Group (ADR) (KANG US)</a> </strong>is following a similar trend.  </li>
<li>Reportedly the uplift to the iKang merger price is just 10%. Dissenters can still lodge an appeal.</li>
</ul>


In officially decided cases concerning dissentient shareholders in privatised US-listed China plays, the uplift to the merger price versus time value of money and legal costs, is less than ideal. 
The outcome for each case will turn on the underlying facts. But it would appear iKang Healthcare Group (ADR) (KANG US) is following a similar trend.  
Reportedly the uplift to the iKang merger price is just 10%. Dissenters can still lodge an appeal.


IKang Healthcare (KANG US): Another Setback For Dissenters

Event-Driven

<div>
<p>Back on the 6 July, <a href="https://www.smartkarma.com/entities/sina-corp-china" target="_blank" data-smartkarma-citation="entities:22691:1" rel="noopener">Sina Corp (Class A) (SINA US)</a> <a href="http://ir.sina.com/index.php/static-files/69e95aee-2729-457f-be56-73628090b8ea" target="_blank" rel="noopener">announced</a> the receipt of a preliminary non-binding “going private” proposal from New Wave MMXV - a company controlled by its chairman/CEO Charles Chao - at US$41/share,  a ~20% premium to the average closing price during the 30 trading days prior to the announcement.</p>
<p>Yesterday, SINA announced it had <a href="http://ir.sina.com/static-files/de1ddd0f-354f-42de-9b33-b1bc414ab1b4" target="_blank" rel="noopener">entered</a> into an Agreement and Plan of Merger with New Wave pursuant to which New Wave will acquire all of the outstanding ordinary shares not owned at US$43.30/share (an 18.1% premium to the undisturbed price).</p>
<p>Despite the 5.6% bump to the initial non-binding proposal, the Offer price still looks light. However, Chao/New Wave controls ~61% of the voting power, and the merger requires two-thirds approval.</p>
<p>The merger is expected to close in the 1Q21. </p>
</div>
<div>
<p>As always, more below the fold.</p>
</div>


Back on the 6 July, Sina Corp (Class A) (SINA US) announced the receipt of a preliminary non-binding “going private” proposal from New Wave MMXV - a company controlled by its chairman/CEO Charles Chao - at US$41/share,  a ~20% premium to the average closing price during the 30 trading days prior to the announcement.
Yesterday, SINA announced it had entered into an Agreement and Plan of Merger with New Wave pursuant to which New Wave will acquire all of the outstanding ordinary shares not owned at US$43.30/share (an 18.1% premium to the undisturbed price).
Despite the 5.6% bump to the initial non-binding proposal, the Offer price still looks light. However, Chao/New Wave controls ~61% of the voting power, and the merger requires two-thirds approval.
The merger is expected to close in the 1Q21. 


As always, more below the fold.


Asia Ex-J Consumer/ Transport analyst

Valerie Law, CFA

<p>Four education companies that were listed between January to April this year announced that they have been included in several Hang Seng family of indices (see table below). These stocks rose between 2.5% to 6.2% intraday.</p><ul>
<li>The significance is not so much their inclusion within Hang Seng indices, but the fact that these stocks are selected means that they are HK-connect eligible (ie. becoming eligible for south-bound monies). </li>
<li>For example, <a href="https://www.smartkarma.com/entities/23624" target="_blank" data-smartkarma-citation="entities:23624:1">Minsheng Education Group (1569 HK)</a> (MSE) is mainly owned by…</li>
</ul>

Four education companies that were listed between January to April this year announced that they have been included in several Hang Seng family of indices (see table below). These stocks rose between 2.5% to 6.2% intraday.
The significance is not so much their inclusion within Hang Seng indices, but the fact that these stocks are selected means that they are HK-connect eligible (ie. becoming eligible for south-bound monies). 
For example, Minsheng Education Group (1569 HK) (MSE) is mainly owned by…


Inclusion in Hang Seng Family of Indexes Boosts Newly-Listed Education Stocks – Top Pick 2001 HK

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Equity Capital Markets

Bright Scholar Education Holdi / Equity Capital Markets

<p>China's richest woman, Ms. Yang Huiyan, the major shareholder of the Chinese property developer <a href="https://www.smartkarma.com/entities/5225" target="_blank" data-smartkarma-citation="entities:5225:1">Country Garden Holdings Co (2007 HK),</a> is listing her K-12 education provider <a href="https://www.smartkarma.com/entities/24126" target="_blank" data-smartkarma-citation="entities:24126:1">Bright Scholar Education (BEDU US)</a> on NASDAQ, aiming to raise US$120m to US$150m to expand its school network. We covered IPOs of several HK-listed education players over the past year. In this insight, we will cover the company's background, our thoughts on its related party transaction, compare its performance to the listed…</p>

China's richest woman, Ms. Yang Huiyan, the major shareholder of the Chinese property developer Country Garden Holdings Co (2007 HK), is listing her K-12 education provider Bright Scholar Education (BEDU US) on NASDAQ, aiming to raise US$120m to US$150m to expand its school network. We covered IPOs of several HK-listed education players over the past year. In this insight, we will cover the company's background, our thoughts on its related party transaction, compare its performance to the listed…

Bright Scholar Education IPO: Related Party Synergy or Bugbear?

United States

Nord Anglia Education Inc provides education, training, and guidance for children and young adults. The School also offers vocational schooling, organizational improvement, guidance, consultancy and support, training services, and more. Nord Anglia Education operates schools around the world.

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Nord Anglia Education (NORD US)

IKang Healthcare (KANG US): Another Setback For Dissenters

In officially decided cases concerning dissentient shareholders in privatised US-listed China plays, the uplift to the takeover price versus time...

David Blennerhassett

SINA Corp: Offer Firmed. Price Sweetened

Sina Corp (Class A) (SINA US) looks sets to join the growing list of Chinese companies seeking to delist in the US and relist, ostensibly in Hong...

David Blennerhassett

Inclusion in Hang Seng Family of Indexes Boosts Newly-Listed Education Stocks – Top Pick 2001 HK

Four education companies that were listed between January to April this year announced that they have been included in several Hang Seng family of...

Valerie Law, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

IKang Healthcare (KANG US): Another Setback For Dissenters

In officially decided cases concerning dissentient shareholders in privatised US-listed China plays, the uplift to the takeover price versus time...

David Blennerhassett

SINA Corp: Offer Firmed. Price Sweetened

Sina Corp (Class A) (SINA US) looks sets to join the growing list of Chinese companies seeking to delist in the US and relist, ostensibly in Hong...

David Blennerhassett

Inclusion in Hang Seng Family of Indexes Boosts Newly-Listed Education Stocks – Top Pick 2001 HK

Four education companies that were listed between January to April this year announced that they have been included in several Hang Seng family of...

Valerie Law, CFA

Bright Scholar Education IPO: Related Party Synergy or Bugbear?

China's richest woman, Ms. Yang Huiyan, the major shareholder of the Chinese property developer Country Garden Holdings Co (2007 HK), is...

Ke Yan, CFA, FRM