Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<div>
<p>Back on the 10 March 2020, PRC commercial property-play <a href="https://www.smartkarma.com/entities/soho-china-ltd" target="_blank" data-smartkarma-citation="entities:4123:1" rel="noopener">Soho China Ltd (410 HK)</a> <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0310/2020031000240.pdf" target="_blank" rel="noopener">announced</a> its shares had been suspended pursuant to the Hong Kong Code on Takeovers and Mergers. Shares gained 47.58% prior to the suspension.</p>
</div>
<div>
<p>Various media sources suggested Blackstone Group was seeking to take the company private at a rumoured price of $6/share, a ~100% premium to the undisturbed price of $2.98.</p>
</div>
<div>
<p>SOHO subsequently <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0311/2020031100644.pdf" target="_blank" rel="noopener">clarified</a> it had been in "<em>discussions with overseas financial investors to explore the possibility of a strategic partnership ... which may or may not lead to a general offer", </em>but stopped short of mentioning the name of the suitor(s).</p>
<p>Then nothing. After a handful of monthly updates pursuant to the Takeovers Code, stating there <em>were</em> no updates, SOHO <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0813/2020081301248.pdf" target="_blank" rel="noopener">announced</a> on the 13 August that the  "<em>Board wishes to update the shareholders and potential investors of the Company that in relation to the Potential Transaction referred to in the announcement of 11 March 2020, all previous discussions with various investors have now been terminated and have not at this time resulted in the terms for a Potential Transaction being agreed</em>."</p>
<h3>The New News</h3>
<p>SOHO <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0615/2021061500114.pdf" target="_blank" rel="noopener">announced</a> this morning its shares had been suspended pursuant to the Hong Kong Code on Takeovers and Mergers. And just to be consistent, shares gained 27% in the last two days of trading leading into the suspension.</p>
<p>SOHO remains 63.93% held by founder Pan Shiyi and his wife Zhang Xin.</p>
<p>Blackstone kicking tyres again?</p>
</div>
<div>
<p>As always, there is more below the fold.</p>
</div>


Back on the 10 March 2020, PRC commercial property-play Soho China Ltd (410 HK) announced its shares had been suspended pursuant to the Hong Kong Code on Takeovers and Mergers. Shares gained 47.58% prior to the suspension.


Various media sources suggested Blackstone Group was seeking to take the company private at a rumoured price of $6/share, a ~100% premium to the undisturbed price of $2.98.


SOHO subsequently clarified it had been in "discussions with overseas financial investors to explore the possibility of a strategic partnership ... which may or may not lead to a general offer", but stopped short of mentioning the name of the suitor(s).
Then nothing. After a handful of monthly updates pursuant to the Takeovers Code, stating there were no updates, SOHO announced on the 13 August that the  "Board wishes to update the shareholders and potential investors of the Company that in relation to the Potential Transaction referred to in the announcement of 11 March 2020, all previous discussions with various investors have now been terminated and have not at this time resulted in the terms for a Potential Transaction being agreed."
The New News
SOHO announced this morning its shares had been suspended pursuant to the Hong Kong Code on Takeovers and Mergers. And just to be consistent, shares gained 27% in the last two days of trading leading into the suspension.
SOHO remains 63.93% held by founder Pan Shiyi and his wife Zhang Xin.
Blackstone kicking tyres again?


As always, there is more below the fold.


SOHO China (410 HK) Suspended Pursuant To The Takeovers Code - Again

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IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

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.

<p><a href="https://www.smartkarma.com/entities/soho-china-ltd" target="_blank" data-smartkarma-citation="entities:4123:1" rel="noopener">Soho China Ltd (410 HK)</a> is a real estate company controlled by power couple Pan Shiyi and Zhang Xin. On 11 March, SOHO China confirmed that it is in discussions with overseas financial investors to explore the possibility of a strategic partnership, which may lead to a general offer. The announcement was a reaction to a Reuters report on 10 March which claimed that <a href="https://www.smartkarma.com/entities/blackstone-group-inc" target="_blank" data-smartkarma-citation="entities:27166:1" rel="noopener">Blackstone Group LP (BX US)</a> was looking to privatise SOHO China at HK$6.00 per share in the coming weeks. </p><div class="content-highlight"><p>Investors can be forgiven for thinking that this rumoured bid will follow the script of the last year’s rumour and come to nothing, particularly in the current market turmoil. For investors willing to brave an uncertain and volatile market (driven largely by sentiment and policy responses to the covid-19 outbreak), we think that SOHO China’s risk/reward profile is attractive.  </p></div>

Soho China Ltd (410 HK) is a real estate company controlled by power couple Pan Shiyi and Zhang Xin. On 11 March, SOHO China confirmed that it is in discussions with overseas financial investors to explore the possibility of a strategic partnership, which may lead to a general offer. The announcement was a reaction to a Reuters report on 10 March which claimed that Blackstone Group LP (BX US) was looking to privatise SOHO China at HK$6.00 per share in the coming weeks. Investors can be forgiven for thinking that this rumoured bid will follow the script of the last year’s rumour and come to nothing, particularly in the current market turmoil. For investors willing to brave an uncertain and volatile market (driven largely by sentiment and policy responses to the covid-19 outbreak), we think that SOHO China’s risk/reward profile is attractive.  

<p>After gaining 47.58% this morning, PRC property-play <a href="https://www.smartkarma.com/entities/soho-china-ltd" target="_blank" data-smartkarma-citation="entities:4123:1" rel="noopener">Soho China Ltd (410 HK)</a> announced shortly before lunch a <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0310/2020031000160.htm" target="_blank" rel="noopener">trading halt</a>.</p>
<p>The news is that Blackstone Group is seeking to take the company private at a rumored price of $6/share, a ~100% premium to the undisturbed price of $2.98.</p>
<p>$6/share backs out a market cap of HK$31.1bn (US$4bn), and an EV of ~HK$53bn.</p>
<p>SOHO is 63.93% held by founder Pan Shiyi and his wife Zhang Xin.</p>
<p>As always, there is more below the fold.</p>

After gaining 47.58% this morning, PRC property-play Soho China Ltd (410 HK) announced shortly before lunch a trading halt.
The news is that Blackstone Group is seeking to take the company private at a rumored price of $6/share, a ~100% premium to the undisturbed price of $2.98.
$6/share backs out a market cap of HK$31.1bn (US$4bn), and an EV of ~HK$53bn.
SOHO is 63.93% held by founder Pan Shiyi and his wife Zhang Xin.
As always, there is more below the fold.

SOHO China Suspended Ahead Of Possible Blackstone Bid

Leading Independent Investment Research, Morningstar, Inc.

Morningstar

Leading Independent Investment Research

Morningstar, Inc.

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Equity Bottom-Up

<p>Soho China has announced it will dispose of Sky Soho based on an asset value of CNY 5,008 million. The sale price represents an 8% premium to the asset’s latest book value. The asset accounted for about 11% of the company’s rental income during first-half 2017, and the sale is part of the company’s announced strategy of unlocking value through the disposal of non-core assets. As Soho China is trading below its book value, the disposal will narrow the discount. We have adjusted our assumption of…</p>

Soho China has announced it will dispose of Sky Soho based on an asset value of CNY 5,008 million. The sale price represents an 8% premium to the asset’s latest book value. The asset accounted for about 11% of the company’s rental income during first-half 2017, and the sale is part of the company’s announced strategy of unlocking value through the disposal of non-core assets. As Soho China is trading below its book value, the disposal will narrow the discount. We have adjusted our assumption of…

Another Asset Disposal to Unlock Value for Soho China, but Path Forward Unclear

China

Guangzhou R&F Properties Co., Ltd. operates real estate businesses. The Company provides housing renovation, housing loans, real estate brokerage, property management, and other services. Guangzhou R&F Properties also operates hotel management.

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Shanghai Infotmic Co., Ltd. is a professional integrated circuit design company, focusing on the research and development of mobile Internet terminal application processor chip.

Zhejiang Guangsha Co., Ltd. develops real estate and undertakes construction projects.  The Company also provides travel services and operates in property management.

Beijing Electronic Zone Investment and Development Co. Ltd. operates as a real estate developer. The Company develops technology industrial parks and residential areas. Beijing Electronic Zone Investment and Development also conducts investment attractions, industry incubation, and industrial park operation businesses.

Hefei Urban Construction Development Co., LTD. develops residential properties. The company also markets and provides services to its related commercial properties.

Shanghai Tianchen Co., Ltd. is an investment holding company.  Through its subsidiaries, the Company develops and manages real estate properties, provides taxi transportation services, offers driver training programs, operates parking lots and logistic zones, and manufactures pharmaceuticals. The Company also operates hotel and construction and renovation businesses.

Tianjin Jinbin Development Co., Ltd. operates a diversified business.  The Company provides construction machinery and tools leasing and rental service, sells general merchandise and real estate properties, distributes electricity and heat, and offers technology consulting services.

Shenzhen World Union Properties Consultancy Inc. develops and invests in real estate.  The Company also provides real estate agency, consultancy and management services, financial and asset management services.

Shenzhen Worldunion Proprts Cnsltncy (002285 CH)

Hubei Fuxing Science and Technology Co Ltd manufactures steel wire ropes, steel wires, and steel strands. The Company's products are used in tire manufacturing, telecommunication, and other industries. Hubei Fuxing also invests in real estate.

Hubei Fuxing Science & Technology (000926 CH)

PT Puradelta Lestari Tbk is an industrial property developer. The Company sells industrial estate, residential and commercial land.

Far East Consortium International Limited, through its subsidiaries, develops and invests in real estate.  The Company also operates hotels.

Far East Consortium International (35 HK)

Sinarmas Land Ltd. invests in, develops and manages real estate.  The Company owns commercial buildings, hotels and resorts in China, Indonesia, Malaysia and Singapore.

Nirlon Ltd. develops real estate.  The Company develops office parks.

KSL Holdings Berhad is an investment holding company. Through its subsidiaries, the Company develops properties. KSL Holdings performs all aspects of development from land purchasing to final property inspection.

PT Duta Pertiwi Tbk operates as a holding company. The Company, through its subsidiaries, develop properties such as  malls, hotels, and office buildings. Duta Pertiwi Tbk serves clients in Indonesia.

Hung Sheng Construction Ltd. provides real estate services to meet both resident ial and commercial real estate needs.  The Company conducts primarily its busine ss in developing, selling, and leasing residential and commercial buildings whic h are constructed by independent constructors.

Tanco Holdings Berhad is an investment holding company.  The Company, through its subsidiaries, operates in property development and investment, hotel, vacation ownership interval and schemes, golf club, marina club, travel and tour agent, and resort.  Tanco also provides construction and money lending services.

Shin Ruenn Development Company Ltd. provides development and sale of residential and commercial buildings, villas, and office buildings. Shin Ruenn also produces video systems, drawing machines, and consumable parts.

Joy City Property Limited, is engaged in the development, operation, sale, leasing and management of mixed-use complexes and commercial properties such as shopping malls, hotels, offices, serviced apartments and resort and tourist properties.

Soho China Ltd. is a property developer. The Company develops properties in central Beijing and Shanghai. Soho China collaborates with internationally recognized architects, translating their designs into real estate which possesses strong appeal to property investors and the local businesses and customer bases they serve.

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Soho China (410 HK)

SOHO China (410 HK) Suspended Pursuant To The Takeovers Code - Again

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David Blennerhassett

SOHO China in Blackstone’s Sights

Soho China Ltd (410 HK) is a real estate company controlled by power couple Pan Shiyi and Zhang Xin. On 11 March, SOHO China confirmed that it is...

Arun George

SOHO China Suspended Ahead Of Possible Blackstone Bid

After gaining 47.58% this morning, PRC property-play Soho China Ltd (410 HK) announced shortly before lunch a trading halt. The news is that...

David Blennerhassett

Another Asset Disposal to Unlock Value for Soho China, but Path Forward Unclear

Soho China has announced it will dispose of Sky Soho based on an asset value of CNY 5,008 million. The sale price represents an 8% premium to the...

Morningstar, Inc.

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