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

CK Infrastructure Holdings / Event-Driven

<p>Li Ka-shing's CKI has sweetened the offer for Power Assets, in a rare and we must admit an unexpected concession by the Asian tycoon to independent investors.</p><ul><li>The initial exchange ratio of 1.04 CKI Share per &nbsp;PAH Share has been revised to 1.066, representing an increase of 2.5% in the terms.</li><li>The post-merger special dividend has been increased to&nbsp;HKD 7.50 from HKD 5.00.</li><li>The increase came about after "taking into account feedback from a number of Scheme Shareholders and after internal discussions and thorough consideration". &nbsp;</li><li>A bump of 2.5% to the merger ratio seems a unusually small and almost meaningless, investors who were not willing to support the deal at 1.04 would still be unlikely to support at 1.066.&nbsp;</li><li>We find it enticing that The CK Group have shown a willingness to increase the offer, and have not declared the deal terms final.</li></ul><p>More below the fold.</p>

Li Ka-shing's CKI has sweetened the offer for Power Assets, in a rare and we must admit an unexpected concession by the Asian tycoon to independent investors.The initial exchange ratio of 1.04 CKI Share per &nbsp;PAH Share has been revised to 1.066, representing an increase of 2.5% in the terms.The post-merger special dividend has been increased to&nbsp;HKD 7.50 from HKD 5.00.The increase came about after "taking into account feedback from a number of Scheme Shareholders and after internal discussions and thorough consideration". &nbsp;A bump of 2.5% to the merger ratio seems a unusually small and almost meaningless, investors who were not willing to support the deal at 1.04 would still be unlikely to support at 1.066.&nbsp;We find it enticing that The CK Group have shown a willingness to increase the offer, and have not declared the deal terms final.More below the fold.

A Somewhat Curious and Smallish Revision to Merger Terms 