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

Brilliance China (1114.HK): Restructuring Could Provide a New Start

Brilliance China (1114.HK) - Panic or Opportunity？

China Auto: July Demand Better than Expected

Quiddity Advisors

Event-Driven

Brilliance China Automotive / Event-Driven

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<p>Last September, Reuters <a href="https://www.reuters.com/article/brilliance-china-take-private-idUSKCN26F0FF" target="_blank" rel="noopener">reported</a> that state-controlled Liaoning Provincial Transportation Investment Group (LPTIG),  was planning to lead a consortium of Chinese investors to take PRC-automaker (&amp; BMW's main Chinese JV partner) <a href="https://www.smartkarma.com/entities/brilliance-china-automotive" target="_blank" data-smartkarma-citation="entities:469:1" rel="noopener">Brilliance China Automotive (1114 HK)</a> private. No deal transpired, allegedly due to "<em>differences in valuations and financing difficulties</em>".</p>
<p>A possible take-private transaction is <a href="https://www.reuters.com/article/us-faw-group-brilliance-china-m-a-exclus/exclusive-chinas-faw-considers-acquiring-bmw-partner-brilliance-for-about-7-2-billion-sources-idUSKBN2A30I5?il=0" target="_blank" rel="noopener">again in the press</a>, this time from state-owned <a href="https://www.smartkarma.com/entities/faw-car-company-limited-a" target="_blank" data-smartkarma-citation="entities:6497:1" rel="noopener">Faw Car Company Limited A (000800 CH)</a>, China’s No. 2 automaker.</p>
<p>Reportedly FAW will acquire the 30.43% stake held by Huachen Automotive Group, Liaoning’s state asset regulator, and 11.89% from LPTIG, triggering a Mandatory General Offer (MGO). The Offer price is rumoured to be HK$11/share, a 73% premium to the undisturbed price. </p>
<p>The on-again, off-again, transaction comes amid HAG's <a href="https://www.scmp.com/business/companies/article/3107281/parent-bmws-chinese-partner-defaults-bond-declining-car-sales" target="_blank" rel="noopener">inability</a> to repay a corporate bond that matured in October last year, culminating in the group <a href="https://www.shine.cn/biz/auto/2011210271/" target="_blank" rel="noopener">entering</a> a bankruptcy restructuring the following month.</p>
<p>Brilliance has <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0203/2021020300609.pdf" target="_blank" rel="noopener">announced</a> it has no knowledge of the potential acquisition of shares and the privatisation of the company.</p>
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<p>As always, more below the fold.</p>
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<p><em>Concerning the title, one of the automotive world’s most distinctive features, that immediately identifies a BMW as being a BMW, is its ‘kidney grille’.</em></p>
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Last September, Reuters reported that state-controlled Liaoning Provincial Transportation Investment Group (LPTIG),  was planning to lead a consortium of Chinese investors to take PRC-automaker (&amp; BMW's main Chinese JV partner) Brilliance China Automotive (1114 HK) private. No deal transpired, allegedly due to "differences in valuations and financing difficulties".
A possible take-private transaction is again in the press, this time from state-owned Faw Car Company Limited A (000800 CH), China’s No. 2 automaker.
Reportedly FAW will acquire the 30.43% stake held by Huachen Automotive Group, Liaoning’s state asset regulator, and 11.89% from LPTIG, triggering a Mandatory General Offer (MGO). The Offer price is rumoured to be HK$11/share, a 73% premium to the undisturbed price. 
The on-again, off-again, transaction comes amid HAG's inability to repay a corporate bond that matured in October last year, culminating in the group entering a bankruptcy restructuring the following month.
Brilliance has announced it has no knowledge of the potential acquisition of shares and the privatisation of the company.


As always, more below the fold.

Concerning the title, one of the automotive world’s most distinctive features, that immediately identifies a BMW as being a BMW, is its ‘kidney grille’.


Brilliance China (1114 HK): Grilling Kidneys