Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Pan-Asia Index Flows & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

China Distance Education Holdings Ltd (ADR) / Event-Driven

China Distance Education Holdings Ltd (ADR)

On 8th June, the top shareholders of <a href="https://www.smartkarma.com/entities/china-distance-education-hldgs-ltd-adr" target="_blank" data-smartkarma-citation="entities:9679:1" rel="noopener">China Distance Education Hldgs Ltd (Adr) (DL US)</a>, Mr.Zhengdong Zhu and his spouse Ms. Baohong Yin, made a "<a href="http://ir.cdeledu.com/news_en/PressReleases_en/li2006087242.shtml" target="_blank" rel="noopener">Preliminary Non-Binding Proposal</a>" to acquire all the outstanding shares of the company. The Offer Price will be US$9.08 in cash per ADS (US$2.27 per ordinary share) and this translates to an implied market cap of US$307mn for the company. The Target board has said it had "just received the Proposal Letter and has not had an opportunity to carefully review and evaluate the proposal or make any decision with respect to the Company’s response to the proposal". At the time of writing, the company's shares are at US$8.21 - approximately 9.6% below the Offer Price (10.6% upside).In this insight, we take a look at the details of the proposal to evaluate the likelihood of this Deal going through.More below the fold.

On 8th June, the top shareholders of China Distance Education Hldgs Ltd (Adr) (DL US), Mr.Zhengdong Zhu and his spouse Ms. Baohong Yin, made a "Preliminary Non-Binding Proposal" to acquire all the outstanding shares of the company. The Offer Price will be US$9.08 in cash per ADS (US$2.27 per ordinary share) and this translates to an implied market cap of US$307mn for the company. The Target board has said it had "just received the Proposal Letter and has not had an opportunity to carefully review and evaluate the proposal or make any decision with respect to the Company’s response to the proposal". At the time of writing, the company's shares are at US$8.21 - approximately 9.6% below the Offer Price (10.6% upside).In this insight, we take a look at the details of the proposal to evaluate the likelihood of this Deal going through.More below the fold. 

China Distance Education (DL US): Takeover Proposal by the Founders

China

Shanghai Xin Nanyang Co., Ltd., through its subsidiaries, manufactures communication products and industrial equipment, develops cable TV network, security trading, and communication systems, provides network integration, education, and precision processing services.

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Shanghai Xin Nanyang (600661 CH)

China Distance Education (DL US): Takeover Proposal by the Founders

On 8th June, the top shareholders of China Distance Education Hldgs Ltd (Adr) (DL US), Mr.Zhengdong Zhu and his spouse Ms. Baohong Yin, made a...

Janaghan Jeyakumar, CFA

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52-week Range

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