IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

Arun has over 15 years’ experience covering the Technology sector. During this time, he has worked with technology start-ups and as an equity analyst in investment banks and independent research firms. He was formerly a Technology Analyst for Canaccord Genuity, Altium Securities, Espirito Santo Investment Bank, Noble Group and Clear Capital. He has a dual Master’s degree in Financial Engineering and Industrial and Operations Engineering from the University of Michigan. He obtained his Bachelor’s degree in Mechanical Engineering from the Indian Institute of Technology, Bombay. He is also a CFA charterholder.

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<p><a href="https://www.smartkarma.com/entities/changshouhua-food-co-ltd" target="_blank" data-smartkarma-citation="entities:18501:1" rel="noopener">Changshouhua Food (1006 HK)</a> is principally engaged in the corn oil business, the production and sales of refined edible sunflower seed oil, olive oil, peanut oil and rice germ oil, and the production and sales of cornmeal. Last night, Changshouhua received a privatisation offer from SanXing Trade, the controlling shareholder with a 52.14% stake. SanXing Trade is an investment holding company which is a wholly-owned subsidiary of Sanxing Grease. SanXing Trade is taking private Changshouhua by offering HK$4.19 cash per scheme share. The bid price is a 16.4% premium over the closing price of HK$3.60 per share on the last trading day (2 September).  </p><div class="content-highlight"><p>The key conditions precedent is the headcount test and the scheme approved by at least 75% disinterested shareholders (&lt;10% disinterested shareholders rejection). Overall, we believe that the privatisation proposal has a good chance of success. At the last close, the gross spread to the privatisation bid is 7.2%. </p></div>

Changshouhua Food (1006 HK) is principally engaged in the corn oil business, the production and sales of refined edible sunflower seed oil, olive oil, peanut oil and rice germ oil, and the production and sales of cornmeal. Last night, Changshouhua received a privatisation offer from SanXing Trade, the controlling shareholder with a 52.14% stake. SanXing Trade is an investment holding company which is a wholly-owned subsidiary of Sanxing Grease. SanXing Trade is taking private Changshouhua by offering HK$4.19 cash per scheme share. The bid price is a 16.4% premium over the closing price of HK$3.60 per share on the last trading day (2 September).  The key conditions precedent is the headcount test and the scheme approved by at least 75% disinterested shareholders (&lt;10% disinterested shareholders rejection). Overall, we believe that the privatisation proposal has a good chance of success. At the last close, the gross spread to the privatisation bid is 7.2%. 

Changshouhua Food

Changshouhua Food’s Privatisation Bid