In today’s briefing:
- 51job’s Egregious Offer: Dissentient Shareholders Commence Court Proceedings
- Zhuangyuan Pasture (1533 HK): Offer Now Unconditional
- DTAC/True Merger: Shares Decline on Noise About NBTC Subcommittees Voting Decision
- Shanghai/Shenzhen Northbound Connect: Weekly Moves (22 July 2022)
- Shanghai/Shenzhen Southbound Connect: Weekly Moves (22 July 2022)
- Banorte – Shareholders Would Be Better off Without Banamex
51job’s Egregious Offer: Dissentient Shareholders Commence Court Proceedings
- Back on 1 March, 51 Job Inc Adr (JOBS US) entered into a revised merger agreement at US$61.00/share, down 22.8% from the initial terms.
- This merger was approved at an EGM on the 27 April and became effective on the 6 May.
- Court proceedings have commenced for dissenters, accounting for a staggering 30.9% of shares out. It’s not just “fair value” under the microscope; but the legality of the downward revision.
Zhuangyuan Pasture (1533 HK): Offer Now Unconditional
- On the 25 April, PRC dairy farmer Lanzhou Zhuangyuan Pasture (1533 HK) announced a Conditional Cash Offer for all its H-shares at $10.89/share.
- This two-step voluntary cash offer incorporated a Scheme-like vote and a 90% tendering condition.
- Shareholders voted for the transaction on the 29 June. The tendering condition has now been satisfied. The last day of trading is on the 1 August.
DTAC/True Merger: Shares Decline on Noise About NBTC Subcommittees Voting Decision
- Total Access Communication (DTAC TB) and True Corp Pcl (TRUE TB) shares declined as reports suggest that NBTC’s subcommittees voted 3:1 AGAINST the merger. True said the reports are false.
- An earlier press conference by CP Group and Telenor ASA (TEL NO) reiterated that the NBTC could only prescribe remedial measures. A court ruling on 16 June supports this view.
- NBTC will allegedly review the subcommittees’ findings on 26-27 July. We think this development results in the NBTC prescribing harsher remedial conditions to the merger rather than blocking it.
Shanghai/Shenzhen Northbound Connect: Weekly Moves (22 July 2022)
- Inside is a recap of movements in the last week relating to the Hong Kong Stock Exchange -Shanghai and Shenzhen Northbound Connect facilities, broken down by company and industry.
- Overall, net outflow over the past week was ~US$1.83bn, split between Shanghai (-US$1.3bn) and Shenzhen (-US$0.5bn).
- The largest inflows were into Yunnan Chuangxin New (002812 CH) and Shanghai Baosight (600845 CH). The largest outflows were in Sungrow Power (300274 CH) and Ping An Bank (000001 CH).
Shanghai/Shenzhen Southbound Connect: Weekly Moves (22 July 2022)
- Inside is a recap of movements in the last week relating to the Shanghai and Shenzhen-Hong Kong Stock Connect facilities, broken down by company and industry.
- Overall, the net inflow over the past week was ~US$0.46bn, split (+US$0.36bn) for Shanghai and (+US$0.1bn) for Shenzhen.
- The largest inflows were into Tencent (700 HK) and BYD (1211 HK). The largest outflow was in Pop Mart International Group Limited (9992 HK) and Great Wall Motor (2333 HK).
Banorte – Shareholders Would Be Better off Without Banamex
- We continue to believe that Banorte is one of the main potential acquirers of Banamex; CitiBanamex’s opex and credit quality metrics worsened to May, making the acquisition more challenging
- Banorte’s 2Q22 results include a reduced core capital ratio post dividend payments which, in the event of a Banamex acquisition, increases the risk of an approximately USD1bn capital raise
- Furthermore, AMLO’s latest pronouncements on the Banamex sale – which include that there should be no mass lay-offs – threaten to limit the acquiring bank’s scope to extract merger synergies
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