In today’s briefing:
- 111’s Opportunistic US$3.66 Bid from the Co-Founders
- Merger Arb Mondays (12 Sep) – DTAC/True, Link Admin, Ramsay, Genex, Tyro, EVOC, Giordano, 111
- ECM Weekly (12th Sep 2022) – Onewo, CALB, YSB, Medanta, Beneunder, JMDC, SH Holdings, Indigo
- Breakthrough Battery Innovation
- China Internet Weekly (12Aug2022): Tencent, JD.com, Meituan, NetEase, Inkeverse
111’s Opportunistic US$3.66 Bid from the Co-Founders
- 111 Inc (YI US), the largest virtual pharmacy network in China, disclosed a privatisation proposal from a co-founder-led consortium at US$3.66 per ADS, a 20.0% premium to the undisturbed price.
- For privatisation to succeed, shareholders representing two-thirds of shares present and voting need to approve the deal. The co-founders represent 92.04% of the total voting power.
- The offer price is unattractive but this is a done deal. At the last close, the gross and annualised spread for a January 2023 completion is 11.6% and 33.4%, respectively.
Merger Arb Mondays (12 Sep) – DTAC/True, Link Admin, Ramsay, Genex, Tyro, EVOC, Giordano, 111
- We summarise the latest spreads and newsflow of merger arb situations covered by us across Hong Kong, Australia, New Zealand, Singapore, Indonesia, Malaysia, Thailand and Chinese ADRs.
- Highest spreads – 21Vianet Group (VNET US), Alliance Aviation Services (AQZ AU), Ramsay Health Care (RHC AU), Genex Power Ltd (GNX AU), Infomedia Ltd (IFM AU), 111 Inc (YI US).
- Lowest spreads – Tyro Payments (TYR AU), Nitro Software Ltd (NTO AU), Nearmap Ltd (NEA AU), Dongzheng Automotive Finance (2718 HK), MyDeal.com.au Ltd (MYD AU), MACA Ltd (MLD AU).
ECM Weekly (12th Sep 2022) – Onewo, CALB, YSB, Medanta, Beneunder, JMDC, SH Holdings, Indigo
- Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
- On the IPO front, a few large Hong Kong IPOs are lining up to launch soon.
- Placements picked up this week in Japan and India with most being secondary deals.
Breakthrough Battery Innovation
- For those unfamiliar, Battery Maker Enovix has developed the next generation of Lithium-ion cells that powers everything from Smartphones to Electric Vehicles.
- The company’s 3D silicon Cells use 100% active silicon anodes, compared to graphite anodes that are used by most Li-on batteries manufactured today.
- Battery makers have stayed away from Silicon anodes due to several technical challenges, including battery swelling and short usable lifespan.
China Internet Weekly (12Aug2022): Tencent, JD.com, Meituan, NetEase, Inkeverse
- Tencent invested more in Ubisoft Entertainment, a French game developer.
- The monthly active users of local life recovered in China in June and July.
- NetEase will close Music Street, the social networking-oriented karaoke app.
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