Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Shortly after piped natural gas operator <strong><a href="https://www.smartkarma.com/entities/suchuang-gas-corp-ltd" target="_blank" data-smartkarma-citation="entities:304:1" rel="noopener">Suchuang Gas Corp (1430 HK)</a></strong> announced a privatisation Offer from <strong><a href="https://www.smartkarma.com/entities/china-resources-gas-group-ltd" target="_blank" data-smartkarma-citation="entities:20525:1" rel="noopener">CR Gas (1193 HK)</a></strong> last August, shares were suspended. And remain suspended today.</li>
<li>That suspension pivoted off previously unreleased information that certain bank deposits of Suchuang Gas' subsidiaries had been pledged. </li>
<li>An investigation remains ongoing. A material portion of those pledges have defaulted. Financial results have been delayed. However, the Offer appears to still be moving forward. </li>
</ul>


Shortly after piped natural gas operator Suchuang Gas Corp (1430 HK) announced a privatisation Offer from CR Gas (1193 HK) last August, shares were suspended. And remain suspended today.
That suspension pivoted off previously unreleased information that certain bank deposits of Suchuang Gas' subsidiaries had been pledged. 
An investigation remains ongoing. A material portion of those pledges have defaulted. Financial results have been delayed. However, the Offer appears to still be moving forward. 


Suchuang Gas (1430 HK): Pledges, Results Delays, And Ongoing Suspension

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

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Quantitative Analysis

<ul>
<li>We analyse the changes of A/H premium on 136 stocks over the last week.</li>
<li>Average A/H premium was 4.7ppt lower last week, led by consumer discretionary, material and healthcare. </li>
<li>37 stocks reached 52 week high last week but most have retreated since, representing arb opportunities in volatile market. </li>
</ul>


We analyse the changes of A/H premium on 136 stocks over the last week.
Average A/H premium was 4.7ppt lower last week, led by consumer discretionary, material and healthcare. 
37 stocks reached 52 week high last week but most have retreated since, representing arb opportunities in volatile market. 


A/H Premium Weekly: Arb Opportunities Last Week

<ul>
<li>We analyse the changes of A/H premium on 136 stocks over the last week.</li>
<li>A/H premium increased by 5.7ppt WoW mainly driven by information technology and health care.</li>
<li>We highlight that 15 stocks reached their 52 week high of A/H premium last week.</li>
</ul>


We analyse the changes of A/H premium on 136 stocks over the last week.
A/H premium increased by 5.7ppt WoW mainly driven by information technology and health care.
We highlight that 15 stocks reached their 52 week high of A/H premium last week.


A/H Premium Weekly: 15 Stocks at 52 Week High

<ul>
<li>We analyse the changes of A/H premium on 136 stocks over the last week. </li>
<li>Increases of A/H premium was mainly due to the consumer staple,  energy and consumer discretionary sector.</li>
<li>We highlight stocks including: Xinjiang Goldwind, GWM, Yankuang, China Oilfield, First Tractor, CCCC, Huaneng.</li>
</ul>


We analyse the changes of A/H premium on 136 stocks over the last week. 
Increases of A/H premium was mainly due to the consumer staple,  energy and consumer discretionary sector.
We highlight stocks including: Xinjiang Goldwind, GWM, Yankuang, China Oilfield, First Tractor, CCCC, Huaneng.


A/H Premium Weekly: Xinjiang Goldwind, Great Wall Motor, First Tractor

<div>
<p>Following a <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0816/2021081600024.pdf" target="_blank" rel="noopener">suspension</a> in trading on the morning of the 16 August "<em>pursuant to The Hong Kong Code on Takeovers and Mergers</em> ", piped natural gas operator <a href="https://www.smartkarma.com/entities/suchuang-gas-corp-ltd" target="_blank" data-smartkarma-citation="entities:304:1" rel="noopener">Suchuang Gas Corp (1430 HK)</a> has announced a privatisation <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0825/2021082501197.pdf" target="_blank" rel="noopener">Offer</a> by way of a Scheme from a wholly-owned subsidiary of <a href="https://www.smartkarma.com/entities/china-resources-gas-group-ltd" target="_blank" data-smartkarma-citation="entities:20525:1" rel="noopener">CR Gas (1193 HK)</a>.</p>
</div>
<div>
<p>CR Gas is offering HK$2.50/share, a 2.88% premium to last close - or given the pre-announcement pop, a 23.15% premium to the average closing price for the 10 days to the last day of trading. Suchuang shareholders are afforded the option of exchanging their shares on a one-for-one basis into Holdco.</p>
<p>No dividends are expected to be paid during the Offer period. </p>
<p>Irrevocables totaling 74.75% have been received from the Controlling Shareholders inter alia. This is somewhat misleading as some of these shares are held by Fung Yu (23.76%) and Total Honest (13.64%) - vehicles ultimately controlled by ex-EDs Su Aping and his wife Zhu Yaying - are in concert with the Offeror, and are therefore required to abstain from voting at the Scheme Meeting. </p>
<p>Disinterested Shareholders total 62.6% of shares out.</p>
</div>
<div>
<p>The headcount test applies as Suchuang is Cayman incorporated.</p>
<p>Regulatory approvals include SASAC.</p>
</div>
<div>
<p>This looks done.</p>
</div>
<div>
<p>More below the fold.</p>
</div>


Following a suspension in trading on the morning of the 16 August "pursuant to The Hong Kong Code on Takeovers and Mergers ", piped natural gas operator Suchuang Gas Corp (1430 HK) has announced a privatisation Offer by way of a Scheme from a wholly-owned subsidiary of CR Gas (1193 HK).


CR Gas is offering HK$2.50/share, a 2.88% premium to last close - or given the pre-announcement pop, a 23.15% premium to the average closing price for the 10 days to the last day of trading. Suchuang shareholders are afforded the option of exchanging their shares on a one-for-one basis into Holdco.
No dividends are expected to be paid during the Offer period. 
Irrevocables totaling 74.75% have been received from the Controlling Shareholders inter alia. This is somewhat misleading as some of these shares are held by Fung Yu (23.76%) and Total Honest (13.64%) - vehicles ultimately controlled by ex-EDs Su Aping and his wife Zhu Yaying - are in concert with the Offeror, and are therefore required to abstain from voting at the Scheme Meeting. 
Disinterested Shareholders total 62.6% of shares out.


The headcount test applies as Suchuang is Cayman incorporated.
Regulatory approvals include SASAC.


This looks done.


More below the fold.


Suchuang Gas (1430 HK): Delisting Proposal From CR Gas

China

Shanghai Dazhong Public Utilities (Group) Co., Ltd. provides utility service and public transportation service. The Company also researches, develops and produces high technologies products.

Shanghai Dazhong Public Utilities - H (1635 HK)

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52-week Range	0.00 - 0.00
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Shanghai Dazhong Public Utilities - H (1635 HK)

Suchuang Gas (1430 HK): Pledges, Results Delays, And Ongoing Suspension

An investigation remains ongoing into the pledged bank deposits. A material portion of those pledges have defaulted. However, the Offer appears to...

David Blennerhassett

A/H Premium Weekly: Arb Opportunities Last Week

We highlight average A/H premium was 4.7ppt lower last week, led by consumer discretionary, material and healthcare. 37 stocks reached 52w high...

Ke Yan, CFA, FRM

A/H Premium Weekly: 15 Stocks at 52 Week High

We highlight that 15 stocks reached their 52 week high of A/H premium last week, including Xinjiang Gold Wind (2208 HK), Fuyao Glass (3606 HK),...

Ke Yan, CFA, FRM

A/H Premium Weekly: Xinjiang Goldwind, Great Wall Motor, First Tractor

We highlight changes in A/H premium for stocks: Xinjiang Goldwind, Great Wall Motor, Yankuang, China Oilfield, First Tractor, CCCC, Huaneng.

Ke Yan, CFA, FRM

Suchuang Gas (1430 HK): Delisting Proposal From CR Gas

This appears a reasonable Offer price. Trading wide at 8.7%/33.3%, probably on account of the prior news leakage. Plus this is not a super liquid...

David Blennerhassett

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)