Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

When <a href="https://www.smartkarma.com/entities/wh-group-ltd" target="_blank" data-smartkarma-citation="entities:13200:1" rel="noopener">WH Group (288 HK)</a> announced its intention to conduct a Partial Offer Buyback to buy back up to 13% of its shares outstanding, the shares popped, but not nearly as far as accretion would have dictated. The level of accretion and what it would mean for investors was discussed in <a href="https://www.smartkarma.com/insights/wh-group-buyback-offer-announced-strong-accretion-creates-accretion-risk" target="_blank" data-smartkarma-citation="insights:52613" rel="noopener">WH Group Buyback Offer Announced - Strong Accretion Creates Accretion Risk</a>.Then the shares fell. This was "not supposed to happen" but was actually utterly normal, as I discussed in <a href="https://www.smartkarma.com/insights/wh-group-vs-peers-too-many-piggies-going-to-market" target="_blank" data-smartkarma-citation="insights:53217" rel="noopener">WH Group Vs Peers - Too Many Piggies Going to Market?</a> It is important to recognise that partial tender trades are de-levered to the back-end. Early on one trades them slightly differently than later on.

When WH Group (288 HK) announced its intention to conduct a Partial Offer Buyback to buy back up to 13% of its shares outstanding, the shares popped, but not nearly as far as accretion would have dictated. The level of accretion and what it would mean for investors was discussed in WH Group Buyback Offer Announced - Strong Accretion Creates Accretion Risk.Then the shares fell. This was "not supposed to happen" but was actually utterly normal, as I discussed in WH Group Vs Peers - Too Many Piggies Going to Market? It is important to recognise that partial tender trades are de-levered to the back-end. Early on one trades them slightly differently than later on.

On 6 June, <a href="https://www.smartkarma.com/entities/wh-group-ltd" target="_blank" data-smartkarma-citation="entities:13200:1" rel="noopener">WH Group (288 HK)</a> announced a proposal for a Voluntary Buyback Offer. The shares popped, then fell. Then kept on falling. <section class="figure"><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/213/993/original/Screenshot+2021-06-19+at+5.37.52+PM.png?1624095490" class="editor-image img-responsive" data-smartkarma-image-id="213993"></figure></section></section>When the announcement was made, I wrote in <a href="https://www.smartkarma.com/insights/wh-group-buyback-offer-announced-strong-accretion-creates-accretion-risk" target="_blank" data-smartkarma-citation="insights:52613" rel="noopener">WH Group Buyback Offer Announced - Strong Accretion Creates Accretion Risk</a> that the shares would not be considered expensive at a price which was higher than the previous close. Since then, the shares have fallen to the low HK$7.00s and then, on Friday morning, below that level. WHAT IS GOING ON???That's easy. And it is part and parcel of this kind of situation. But there is another element. Too many piggies going to market.

On 6 June, WH Group (288 HK) announced a proposal for a Voluntary Buyback Offer. The shares popped, then fell. Then kept on falling. When the announcement was made, I wrote in WH Group Buyback Offer Announced - Strong Accretion Creates Accretion Risk that the shares would not be considered expensive at a price which was higher than the previous close. Since then, the shares have fallen to the low HK$7.00s and then, on Friday morning, below that level. WHAT IS GOING ON???That's easy. And it is part and parcel of this kind of situation. But there is another element. Too many piggies going to market. 

WH Group Vs Peers - Too Many Piggies Going to Market?

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

In this edition of the Smartkarma North Asia Weekly, it summarizes some of the top insights on Smartkarma in the past week covering Japan, HK/China, and the Korean stock markets. The top topics are below:1) POTUS Executive Order: Updated List of Chinese Stocks to Be Deleted by Major Indices2) Kanzhun IPO3) Angelalign IPO 4) China: Allows Families to Have Three Children5) HYBE Rights Offering6) China Infrastructure REITs7) Aihuishou IPO8) Full Truck Alliance IPO9) Enjin IPO10) Xpeng: Positive Momentum Back11) Tesla China Losing Market Share12) CStone Pharma (2616.HK) - Time for a Revaluation13) JD Health Lock-Up Expiration14) Passive Money Tracking KOSPI15) SK IE Tech KOSPI 200 Fast-Entry16) DL Holdings with Recent Tender’s Increased Shares: Index Treatment 17) WH Group (288 HK)

In this edition of the Smartkarma North Asia Weekly, it summarizes some of the top insights on Smartkarma in the past week covering Japan, HK/China, and the Korean stock markets. The top topics are below:1) POTUS Executive Order: Updated List of Chinese Stocks to Be Deleted by Major Indices2) Kanzhun IPO3) Angelalign IPO 4) China: Allows Families to Have Three Children5) HYBE Rights Offering6) China Infrastructure REITs7) Aihuishou IPO8) Full Truck Alliance IPO9) Enjin IPO10) Xpeng: Positive Momentum Back11) Tesla China Losing Market Share12) CStone Pharma (2616.HK) - Time for a Revaluation13) JD Health Lock-Up Expiration14) Passive Money Tracking KOSPI15) SK IE Tech KOSPI 200 Fast-Entry16) DL Holdings with Recent Tender’s Increased Shares: Index Treatment 17) WH Group (288 HK)

Smartkarma North Asia Weekly: POTUS Order, Kanzhun, Angelalign, & 3 Children Policy in China

Alternate Title: Today's Pig is Tomorrow's Pig, Only Leaner.On 2 June at mid-day, <a href="https://www.smartkarma.com/entities/wh-group-ltd" target="_blank" data-smartkarma-citation="entities:13200:1" rel="noopener">WH Group (288 HK)</a> shares were halted "pending the release of an announcement which contains inside information of the Company pursuant to the Codes on Takeovers and Mergers and Share Buy-backs."<a href="https://www.smartkarma.com/profiles/david-blennerhassett" target="_blank" data-smartkarma-citation="accounts:840" rel="noopener">David Blennerhassett</a> covered the run-up to the situation and some comps in <a href="https://www.smartkarma.com/insights/wh-group-288-hk-today-s-pig-is-tomorrow-s-bacon" target="_blank" data-smartkarma-citation="insights:52429" rel="noopener">WH Group (288 HK): Today's Pig Is Tomorrow's Bacon?</a> while speculating on a fair price should an Offer eventuate. It wasn't a Takeover Offer. It turns out to be a Buyback Offer.Today (6 June 2021) the company <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0606/2021060600019.pdf" target="_blank" rel="noopener">announced</a> a Voluntary Offer through BoAML and Morgan Stanley to buy back 1,916,937,202 shares (13% of shares outstanding) at a price of HK$7.80/share. This is a 17.29% premium to the close on 1 June and a 12.6% premium to the last trade before the suspension (the stock was up 4.2% on the 2nd before being suspended).Because the Controlling Shareholders (Heroic Zone, Chang Yun, Sure Pass, High Zenith, Mr. Wan Long, Mr. Wan Hongwei, Mr. Guo Lijun and Mr. Ma Xiangjie) has irrevocably undertaken that shares under their control will not be tendered, and they own 34.14%, pursuant to Rule 32.1 of the Takeovers Code and Rule 6 of the Buybacks Code, the increase in voting rights would constitute an "acquisition" for purposes of the Code, so Heroic Zone, controlling 34.11%, will make an application to the Executive for a Whitewash Waiver which would require approval at an EGM by 75% of independent shareholders in attendance.Lots of details to consider. More below the fold.

Alternate Title: Today's Pig is Tomorrow's Pig, Only Leaner.On 2 June at mid-day, WH Group (288 HK) shares were halted "pending the release of an announcement which contains inside information of the Company pursuant to the Codes on Takeovers and Mergers and Share Buy-backs."David Blennerhassett covered the run-up to the situation and some comps in WH Group (288 HK): Today's Pig Is Tomorrow's Bacon? while speculating on a fair price should an Offer eventuate. It wasn't a Takeover Offer. It turns out to be a Buyback Offer.Today (6 June 2021) the company announced a Voluntary Offer through BoAML and Morgan Stanley to buy back 1,916,937,202 shares (13% of shares outstanding) at a price of HK$7.80/share. This is a 17.29% premium to the close on 1 June and a 12.6% premium to the last trade before the suspension (the stock was up 4.2% on the 2nd before being suspended).Because the Controlling Shareholders (Heroic Zone, Chang Yun, Sure Pass, High Zenith, Mr. Wan Long, Mr. Wan Hongwei, Mr. Guo Lijun and Mr. Ma Xiangjie) has irrevocably undertaken that shares under their control will not be tendered, and they own 34.14%, pursuant to Rule 32.1 of the Takeovers Code and Rule 6 of the Buybacks Code, the increase in voting rights would constitute an "acquisition" for purposes of the Code, so Heroic Zone, controlling 34.11%, will make an application to the Executive for a Whitewash Waiver which would require approval at an EGM by 75% of independent shareholders in attendance.Lots of details to consider. More below the fold. 

WH Group Buyback Offer Announced - Strong Accretion Creates Accretion Risk

David Blennerhassett

Equity Bottom-Up

The world's biggest meat suppliers are in the news over the last 24 hours. 
The big news overnight was the hacking of <a href="https://www.smartkarma.com/entities/jbs-sa-ef8d7651-aaae-4c5f-96b8-d5ec11a8018a" target="_blank" data-smartkarma-citation="entities:28580:1" rel="noopener">JBS SA (JBSAY US)</a>, the largest meat producer globally, resulting in the shuttering of around a fifth of its America’s meat production, and impacting JBS plants in Australia and Canada. 
Closer to "home", shares of <a href="https://www.smartkarma.com/entities/wh-group-ltd" target="_blank" data-smartkarma-citation="entities:13200:1" rel="noopener">WH Group (288 HK)</a>, parent of Smithfield Foods, the world’s largest pork producer, was <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0602/2021060200549.pdf" target="_blank" rel="noopener">halted</a> at 1pm today "pending the release of an announcement which contains inside information of the Company pursuant to the Codes on Takeovers and Mergers and Share Buy-backs."
There is, as yet, no further details forthcoming. Shares gained 4% on decent volume prior to the halt.
For now, this insight provides some background information on WH Group, and also speculates  on a fair price should a firm Offer unfold. 
<hr>
There is some conjecture as to the meaning of "Pearls Before Swine". I'm leaning towards it means something like "to offer something valuable to someone who does not know its value".

The world's biggest meat suppliers are in the news over the last 24 hours. 
The big news overnight was the hacking of JBS SA (JBSAY US), the largest meat producer globally, resulting in the shuttering of around a fifth of its America’s meat production, and impacting JBS plants in Australia and Canada. 
Closer to "home", shares of WH Group (288 HK), parent of Smithfield Foods, the world’s largest pork producer, was halted at 1pm today "pending the release of an announcement which contains inside information of the Company pursuant to the Codes on Takeovers and Mergers and Share Buy-backs."
There is, as yet, no further details forthcoming. Shares gained 4% on decent volume prior to the halt.
For now, this insight provides some background information on WH Group, and also speculates  on a fair price should a firm Offer unfold. 

There is some conjecture as to the meaning of "Pearls Before Swine". I'm leaning towards it means something like "to offer something valuable to someone who does not know its value". 

WH Group (288 HK): Today's Pig Is Tomorrow's Bacon?

Hong Kong

WH Group Limited operates as a holdings company. The Company, through its subsidiaries, provides meat processing services, supplies chilled meat, meat products, and other related products.

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WH Group (288 HK)

WH Group - Trading Opportunities Abound

WH Group is a partial offer situation. Partial offers are cool. They offer lots of trading opportunities early and bigger arb opportunities later....

Travis Lundy

WH Group Vs Peers - Too Many Piggies Going to Market?

WH Group is the subject of a possible partial offer buyback to buy 20% or more of your shares at a premium. A look at progress and inputs.

Travis Lundy

Smartkarma North Asia Weekly: POTUS Order, Kanzhun, Angelalign, & 3 Children Policy in China

In this edition of the Smartkarma North Asia Weekly, it summarizes some of the top insights on Smartkarma in the past week covering Japan, HK...

Douglas Kim

WH Group Buyback Offer Announced - Strong Accretion Creates Accretion Risk

WH Group announced a Voluntary Offer Buyback. It is a slightly complicated process because of the Whitewash waiver and the accretion. There is so...

Travis Lundy

WH Group (288 HK): Today's Pig Is Tomorrow's Bacon?

There is, as yet, no further details forthcoming. For now, this insight provides some background information on WH Group, and also speculates on a...

David Blennerhassett

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