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

Beijing Digital (6188 HK): Zhuhai SASAC's MGO On Track

Beijing Digital (6188 HK): Offer Now Open. IFA Says Fair

Quiddity Advisors

Event-Driven

Zhuhai Huafa, wholly-owned by Zhuhai SASAC, has entered into a share purchase agreement (SPA) to acquire domestic shares in mobile device manufacturer <a href="https://www.smartkarma.com/entities/beijing-digital-telecom-co-ltd" target="_blank" data-smartkarma-citation="entities:4113:1" rel="noopener">Beijing Digital Telecom (6188 HK)</a> from Di Er Tong and Digital Science &amp; Technology, collectively the controlling shareholders of Beijing Digital.
Following the completion of the SPA and the entering into a concert party agreement, Zhuhai Huafa and concert parties would hold 37.99%, triggering a mandatory general offer (MGO). The Offer price will be HK$3.8429 per H-Share, a premium of 7.04% to last close. A concurrent Offer of RM3.2030/share will be made for the domestic shares.
The SPA is conditional on, inter alia, SASAC and NDRC approval, together with miscellaneous conditions such as the entering into of loan and concert party agreements. SASAC approval has already been obtained.
The MGO is conditional on 50% of the voting rights of Beijing Digital being held by Zhuhai Huafa and concert parties at the first close.
Beijing Digital is PRC incorporated and a such, there are no rights to compulsory acquire shares, no matter how many shares are tendered into the Offer. Nevertheless, it is not Zhuhai Huafa's intention to delist Beijing Digital.
Beijing Digital's shares gained 65% in the month of January, ahead of the <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0201/2021012901785.pdf" target="_blank" rel="noopener">suspension</a> on shares before trading on 1 February. Shares are down 11% as I type.
As always, more below the fold.

Zhuhai Huafa, wholly-owned by Zhuhai SASAC, has entered into a share purchase agreement (SPA) to acquire domestic shares in mobile device manufacturer Beijing Digital Telecom (6188 HK) from Di Er Tong and Digital Science &amp; Technology, collectively the controlling shareholders of Beijing Digital.
Following the completion of the SPA and the entering into a concert party agreement, Zhuhai Huafa and concert parties would hold 37.99%, triggering a mandatory general offer (MGO). The Offer price will be HK$3.8429 per H-Share, a premium of 7.04% to last close. A concurrent Offer of RM3.2030/share will be made for the domestic shares.
The SPA is conditional on, inter alia, SASAC and NDRC approval, together with miscellaneous conditions such as the entering into of loan and concert party agreements. SASAC approval has already been obtained.
The MGO is conditional on 50% of the voting rights of Beijing Digital being held by Zhuhai Huafa and concert parties at the first close.
Beijing Digital is PRC incorporated and a such, there are no rights to compulsory acquire shares, no matter how many shares are tendered into the Offer. Nevertheless, it is not Zhuhai Huafa's intention to delist Beijing Digital.
Beijing Digital's shares gained 65% in the month of January, ahead of the suspension on shares before trading on 1 February. Shares are down 11% as I type.
As always, more below the fold. 

Shenzhen Shenxin Taifeng Group Co,Ltd. (000034 CH)

Beijing Digital (6188 HK): Possible Offer From Zhuhai SASAC