Special Situations, Content Strategist, Smartkarma

Crispin Francis

Special Situations, Content Strategist

Smartkarma

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

Research Reinvented

Event-Driven

This piece is a follow up to my <a href="https://www.smartkarma.com/insights/west-china-cement-asset-injection-leading-to-a-mandatory-cash-offer" target="_blank">initial</a> insight highlighting the dynamic situation between West China Cement (2233 HK) and Conch (914 HK) which could eventually lead to a mandatory general cash offer at HK$ 1.69.<h2>Latest Event</h2>West China Cement (2233 HK) and Conch (914 HK) has release a supplemental joint announcement. (Attached in insight)These are the changes from the initial joint announcement:<div><ol><li>
<s>Hong Kong Exchange and SFC allows Mr. Zhang and Asia Gain to vote at the EGM as a result of having</s>…</li></ol></div>

This piece is a follow up to my initial insight highlighting the dynamic situation between West China Cement (2233 HK) and Conch (914 HK) which could eventually lead to a mandatory general cash offer at HK$ 1.69.Latest EventWest China Cement (2233 HK) and Conch (914 HK) has release a supplemental joint announcement.  (Attached in insight)These are the changes from the initial joint announcement:
Hong Kong Exchange and SFC allows Mr. Zhang and Asia Gain to vote at the EGM as a result of having…

WCC/Conch - Positive Development; Conditions Dropped

Conch ("914 HK") and West China Cement ("2233 HK")&nbsp;has jointly announced a major and connected transaction&nbsp;of West China Cement.&nbsp;Essential, there would be a&nbsp;connected multi-step transaction that would have to take place leading up to a mandatory cash offer at HKD 1.69 / share.&nbsp;Events:<ol><li>Conch will sell four companies principally engaged in the&nbsp;manufacturing and sale of cement in Shaanxi Province&nbsp;to West China Cement in exchange for 2233 HK at an issue price of &nbsp;HKD&nbsp;1.35 / share</li><li>Approval of West China Cement shareholders; simple majority vote by poll</li><li>Following this&nbsp;asset sale and scrip issue, Conch will own 51% of WCC, and the founders stake will dilute from 32.4% to 19.9%.&nbsp;</li><li>Within 7 days of the completion of the Asset Sale, Conch will launch a Mandatory and Unconditional Offer to purchase all outstanding shares of WCC for $1.69. Payment within 7 days of acceptance</li><li>The founder of WCC has undertaken not&nbsp;to accept the mandatory offer</li></ol>In this insight, we look at the multiples being paid for the target companies. We identify the rationale of the transaction and the likelihood of the mandatory offer being triggered. We have also spoken with Optima Capital. More below the fold.

Conch ("914 HK") and West China Cement ("2233 HK")&nbsp;has jointly announced a major and connected transaction&nbsp;of West China Cement.&nbsp;Essential, there would be a&nbsp;connected multi-step transaction that would have to take place leading up to a mandatory cash offer at HKD 1.69 / share.&nbsp;Events:Conch will sell four companies principally engaged in the&nbsp;manufacturing and sale of cement in Shaanxi Province&nbsp;to West China Cement in exchange for 2233 HK at an issue price of &nbsp;HKD&nbsp;1.35 / shareApproval of West China Cement shareholders; simple majority vote by pollFollowing this&nbsp;asset sale and scrip issue, Conch will own 51% of WCC, and the founders stake will dilute from 32.4% to 19.9%.&nbsp;Within 7 days of the completion of the Asset Sale, Conch will launch a Mandatory and Unconditional Offer to purchase all outstanding shares of WCC for $1.69. Payment within 7 days of acceptanceThe founder of WCC has undertaken not&nbsp;to accept the mandatory offerIn this insight, we look at the multiples being paid for the target companies. We identify the rationale of the transaction and the likelihood of the mandatory offer being triggered. We have also spoken with Optima Capital. More below the fold.

West China Cement - Asset Injection Leading to a Mandatory Cash Offer

China

West China Cement Limited produces and distributes cement products.

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West China Cement (2233 HK)

WCC/Conch - Positive Development; Conditions Dropped

This piece is a follow up to my initial insight highlighting the dynamic situation between West China Cement (2233 HK) and Conch (914 HK) which...

Crispin Francis

West China Cement - Asset Injection Leading to a Mandatory Cash Offer

Conch ("914 HK") and West China Cement ("2233 HK") has jointly announced a major and connected transaction of West China Cement. Essential, there...

Crispin Francis

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)