Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

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<p>Back on the 1 February, Zhuhai Huafa, wholly-owned by Zhuhai SASAC, entered into a share purchase agreement (SPA) to acquire domestic shares in mobile device manufacturer <a href="https://www.smartkarma.com/entities/beijing-digital-telecom-co-ltd" target="_blank" data-smartkarma-citation="entities:4113:1" rel="noopener">Beijing Digital Telecom (6188 HK)</a> from Di Er Tong and Digital Science &amp; Technology, collectively the controlling shareholders of Beijing Digital.</p>
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<p>Upon completion of the SPA, Zhuhai Huafa and concert parties would hold 37.99%, triggering a mandatory general offer (MGO). The Offer price will be HK$3.8429 per H-Share, a premium of 7.04% to last close. A concurrent Offer of RM3.2030/share will be made for the domestic shares.</p>
<h3>The New News</h3>
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<p>The SPA,  which was conditional on, inter alia, SASAC and NDRC approval, together with miscellaneous conditions such as the entering into of loan and concert party agreements, has now <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0407/2021040702361.pdf" target="_blank" rel="noopener">completed</a>. The MGO has subsequently been triggered.</p>
<p>The MGO has a 50% tendering condition - attached to ALL voting rights of Beijing Capital. No irrevocables have been received to date.</p>
<p>The Composite Document is expected to be despatched by the 16 April, at which time the Offer will be open for acceptances.</p>
<p>As always, more below the fold. </p>
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Back on the 1 February, Zhuhai Huafa, wholly-owned by Zhuhai SASAC, entered into a share purchase agreement (SPA) to acquire domestic shares in mobile device manufacturer Beijing Digital Telecom (6188 HK) from Di Er Tong and Digital Science &amp; Technology, collectively the controlling shareholders of Beijing Digital.


Upon completion of the SPA, Zhuhai Huafa and concert parties would hold 37.99%, triggering a mandatory general offer (MGO). The Offer price will be HK$3.8429 per H-Share, a premium of 7.04% to last close. A concurrent Offer of RM3.2030/share will be made for the domestic shares.
The New News


The SPA,  which was conditional on, inter alia, SASAC and NDRC approval, together with miscellaneous conditions such as the entering into of loan and concert party agreements, has now completed. The MGO has subsequently been triggered.
The MGO has a 50% tendering condition - attached to ALL voting rights of Beijing Capital. No irrevocables have been received to date.
The Composite Document is expected to be despatched by the 16 April, at which time the Offer will be open for acceptances.
As always, more below the fold. 









Beijing Digital (6188 HK): Zhuhai SASAC's MGO On Track

<p>Zhuhai Huafa, wholly-owned by Zhuhai SASAC, has entered into a share purchase agreement (SPA) to acquire domestic shares in mobile device manufacturer <a href="https://www.smartkarma.com/entities/beijing-digital-telecom-co-ltd" target="_blank" data-smartkarma-citation="entities:4113:1" rel="noopener">Beijing Digital Telecom (6188 HK)</a> from Di Er Tong and Digital Science &amp; Technology, collectively the controlling shareholders of Beijing Digital.</p>
<p>Following the completion of the SPA and the entering into a concert party agreement, Zhuhai Huafa and concert parties would hold 37.99%, triggering a mandatory general offer (MGO). The Offer price will be HK$3.8429 per H-Share, a premium of 7.04% to last close. A concurrent Offer of RM3.2030/share will be made for the domestic shares.</p>
<p>The SPA is conditional on, inter alia, SASAC and NDRC approval, together with miscellaneous conditions such as the entering into of loan and concert party agreements. SASAC approval has already been obtained.</p>
<p>The MGO is conditional on 50% of the voting rights of Beijing Digital being held by Zhuhai Huafa and concert parties at the first close.</p>
<p>Beijing Digital is PRC incorporated and a such, there are no rights to compulsory acquire shares, no matter how many shares are tendered into the Offer. Nevertheless, it is not Zhuhai Huafa's intention to delist Beijing Digital.</p>
<p>Beijing Digital's shares gained 65% in the month of January, ahead of the <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0201/2021012901785.pdf" target="_blank" rel="noopener">suspension</a> on shares before trading on 1 February. Shares are down 11% as I type.</p>
<p>As always, more below the fold. </p>

Zhuhai Huafa, wholly-owned by Zhuhai SASAC, has entered into a share purchase agreement (SPA) to acquire domestic shares in mobile device manufacturer Beijing Digital Telecom (6188 HK) from Di Er Tong and Digital Science &amp; Technology, collectively the controlling shareholders of Beijing Digital.
Following the completion of the SPA and the entering into a concert party agreement, Zhuhai Huafa and concert parties would hold 37.99%, triggering a mandatory general offer (MGO). The Offer price will be HK$3.8429 per H-Share, a premium of 7.04% to last close. A concurrent Offer of RM3.2030/share will be made for the domestic shares.
The SPA is conditional on, inter alia, SASAC and NDRC approval, together with miscellaneous conditions such as the entering into of loan and concert party agreements. SASAC approval has already been obtained.
The MGO is conditional on 50% of the voting rights of Beijing Digital being held by Zhuhai Huafa and concert parties at the first close.
Beijing Digital is PRC incorporated and a such, there are no rights to compulsory acquire shares, no matter how many shares are tendered into the Offer. Nevertheless, it is not Zhuhai Huafa's intention to delist Beijing Digital.
Beijing Digital's shares gained 65% in the month of January, ahead of the suspension on shares before trading on 1 February. Shares are down 11% as I type.
As always, more below the fold. 

Beijing Digital (6188 HK): Possible Offer From Zhuhai SASAC

China

Shenzhen Shenxin Taifeng Group Co., Ltd. develops, manufactures, and sells communication products, as well as produces feedstuffs and breeds poultry.  The Company's products include feedstuffs, communication products and agricultural products as well as is involved in property development and management.

Shenzhen Shenxin Taifeng Group Co,Ltd. (000034 CH)

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Shenzhen Shenxin Taifeng Group Co,Ltd. (000034 CH)

Beijing Digital (6188 HK): Zhuhai SASAC's MGO On Track

The Offer price appears fair, with respect to historical trading multiples, and optically. I see a gross/annualised spread of 3%/34.2%. I'd be...

David Blennerhassett

Beijing Digital (6188 HK): Possible Offer From Zhuhai SASAC

The Offer price appears fair, with respect to historical trading multiples. I see a gross/annualised spread of 15.4%/55.8%, assuming completion...

David Blennerhassett

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52-week Range

Market Cap (USDm)

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