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

Aveo's Offer One Step Closer To Getting Done

Aveo: Take Advantage of the Lull To Take a Second Crack

Brookfield's Offer For Aveo May Just Get Up

Quiddity Advisors

Event-Driven

Brookfield's Offer for <a href="https://www.smartkarma.com/entities/aveo-group" target="_blank" data-smartkarma-citation="entities:9390:1" rel="noopener">Aveo Group (AOG AU)</a> <a href="https://www.asx.com.au/asxpdf/20190814/pdf/447g86zg2q15l1.pdf" target="_blank" rel="noopener">announced</a> earlier this month of $2.195/security was a disappointment to investors after Aveo had announced a Strategic Review almost a year beforehand when shares were trading at A$2.21.
That dissatisfaction should be mollified after Aveo reported <a href="https://www.asx.com.au/asxpdf/20190828/pdf/447y05sjgd3948.pdf" target="_blank" rel="noopener">this morning</a> a LOSS for the full year of A$213.4mn after booking an A$259.3mn decrease in the property valuation of the Retirement Portfolio. As a result, the net tangible assets per security declined to $3.50 as at 30 June 2019 from $3.92 as at 30 June 2018 and $3.83/security as at December year-end.  
That places the Offer at a 0.63x NTA compared to 0.57x using the December figure. That's not a slam dunk multiple for an investment property company and with reference to peers. 
However, six proposals from investment banks and real estate advisors were <a href="https://www.asx.com.au/asxpdf/20180824/pdf/43xnyydl8kpkf6.pdf" target="_blank" rel="noopener">received</a> in response to the Review, then shortlisted in late February this year, before Brookfield emerged as the preferred party. After a long due diligence period, Brookfield emerged with its (final) Offer. This latest set of financials helps clarify the protracted data room analysis.
The Offer has Board approval, in the absence of a superior offer, subject to the Independent Expert concluding the Scheme is the best interest of shareholders.
Seng Huang Lee and Eric Lee, both directors of Aveo and <a href="https://www.smartkarma.com/entities/mulpha-international-bhd" target="_blank" data-smartkarma-citation="entities:13490:1" rel="noopener">Mulpha International (MIT MK)</a>, Aveo's largest shareholder with 24.4%, have confirmed they intend to recommend to Mulpha to support the Offer. Seng Huang Lee is Mulpha's shareholder with 44.96%, all but assuring a shareholder resolution on the stake sale is passed.
This now looks a done deal.  The Scheme Booklet should be dispatched in Oct and the Scheme Meeting in November.

Brookfield's Offer for Aveo Group (AOG AU) announced earlier this month of $2.195/security was a disappointment to investors after Aveo had announced a Strategic Review almost a year beforehand when shares were trading at A$2.21.
That dissatisfaction should be mollified after Aveo reported this morning a LOSS for the full year of A$213.4mn after booking an A$259.3mn decrease in the property valuation of the Retirement Portfolio. As a result, the net tangible assets per security declined to $3.50 as at 30 June 2019 from $3.92 as at 30 June 2018 and $3.83/security as at December year-end.  
That places the Offer at a 0.63x NTA compared to 0.57x using the December figure. That's not a slam dunk multiple for an investment property company and with reference to peers. 
However, six proposals from investment banks and real estate advisors were received in response to the Review, then shortlisted in late February this year, before Brookfield emerged as the preferred party. After a long due diligence period, Brookfield emerged with its (final) Offer. This latest set of financials helps clarify the protracted data room analysis.
The Offer has Board approval, in the absence of a superior offer, subject to the Independent Expert concluding the Scheme is the best interest of shareholders.
Seng Huang Lee and Eric Lee, both directors of Aveo and Mulpha International (MIT MK), Aveo's largest shareholder with 24.4%, have confirmed they intend to recommend to Mulpha to support the Offer. Seng Huang Lee is Mulpha's shareholder with 44.96%, all but assuring a shareholder resolution on the stake sale is passed.
This now looks a done deal.  The Scheme Booklet should be dispatched in Oct and the Scheme Meeting in November. 

Aveo's Offer To Get Up After Huge Writedown