Daily Brief China: Xingda International, Acotec Scientific Holdings, Luxshare Precision Industry and more

In today’s briefing:

Xingda Int’l (1899 HK): Partial MBO Open For Tendering
Acotec (6669 HK): Current Proration of 82.7%
Luxshare Precision Industry: More Market Share Gains from Hon Hai Precision Likely in 2023

Xingda Int’l (1899 HK): Partial MBO Open For Tendering

Back on the 7th December, Xingda International (1899 HK) announced a partial Offer from a consortium comprising management (known as the Five parties) at HK$1.88/share, a 24.5% premium to undisturbed.
Pre-Conditions were satisfied on the 15 December and the Composite Document was dispatched last night.
The first close is the 24 February. Payment under the Offer is expected to be the 21 March.

With a minimum acceptance hurdle of 50% and irrevocables of 60.14%, Acotec Scientific Holdings (6669 HK)‘s partial offer was always going to turn unconditional.
As per last night’s announcement, valid acceptances were 78.59%. The Offer has automatically been extended to the 9 February – this is the final close. Pro-ration is currently 82.7%.
The minor quirk for partial Offers is that payment occurs within seven business days of the final close, not seven days from the Offer turning unconditional.

We have a positive view of Luxshare Precision Industry (002475 CH) and we believe its shares are well poised to outperform the market this year.
The recent production halts and protests at Foxconn’s Zhengzhou facility due to the overly stringent COVID measures has benefited Luxshare since Apple has given more orders to the company.
We believe Luxshare will continue to grab more market share for producing iPhones and other products of Apple in 2023.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network