Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

HK Type 4 license through Ballingal Investment Advisors Ltd. 

I'm a highly experienced sell-side analyst with in excess of 22 years of covering Asia Pacific equities, the past 19 years immersed in event strategies encompassing M&A risk arbitrage, directional long/short, stub trades and restructuring.  

My background also includes accountancy (liquidation/bankruptcy/receivership) earlier in my career and as a chief financial officer of a global commodity company based in the US and Mexico.

Pan-Asia Catalysts/Events

CKI's APA Proposal to Test Foreign Investment Mood

APA Group - Too Much Risk, Not Enough Reward

APA Receives Attractive Takeover Proposal From CKI; We Lift Our FVE to AUD 9.50

Quiddity Advisors

Event-Driven

The ACCC will <a href="http://registers.accc.gov.au/content/index.phtml/itemId/1205399/fromItemId/750991" target="_blank">release its decision</a> on the <a href="https://www.smartkarma.com/entities/18658" target="_blank" data-smartkarma-citation="entities:18658:1">APA Group (APA AU)</a>/CKI Consortium proposal today. This may be a final decision or the release of a Statement of Issues. 
ACCC's mandate is captured under Section 50 of the <a href="https://www.legislation.gov.au/Details/C2017C00369" target="_blank">Competition and Consumer Act 2010</a>, and prohibits acquisitions that are likely to have the effect of substantially lessening competition in a market. Such pushback from the ACCC may be allayed if by making the argument a portion of APA's assets are regulated, CKI is open to greater regulation on APA's network, therefore the Australian Energy Regulator simply oversees a larger entity; in essence, propositioning the concept it is irrelevant who actually owns the assets, provided they are regulated.
FIRB assesses the potential implications of proposed acquisitions for national security/public interests. Should CKI be successful, the majority of Australia's gas transmission assets - which are considered critical infrastructure-  will be controlled by Chinese companies (CKI + State Grid, a Chinese SOE). Although ACCC's approval could potentially get up on this "regulated" technicality, FIRB is probably less inclined to support the acquisition.

The ACCC will release its decision on the APA Group (APA AU)/CKI Consortium proposal today. This may be a final decision or the release of a Statement of Issues. 
ACCC's mandate is captured under Section 50 of the Competition and Consumer Act 2010, and prohibits acquisitions that are likely to have the effect of substantially lessening competition in a market. Such pushback from the ACCC may be allayed if by making the argument a portion of APA's assets are regulated, CKI is open to greater regulation on APA's network, therefore the Australian Energy Regulator simply oversees a larger entity; in essence, propositioning the concept it is irrelevant who actually owns the assets, provided they are regulated.
FIRB assesses the potential implications of proposed acquisitions for national security/public interests. Should CKI be successful, the majority of Australia's gas transmission assets - which are considered critical infrastructure-  will be controlled by Chinese companies (CKI + State Grid, a Chinese SOE). Although ACCC's approval could potentially get up on this "regulated" technicality, FIRB is probably less inclined to support the acquisition.

APA Group

APA/CKI: ACCC Maybe, But FIRB Unlikely