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

China Three Gorges' Rebuttable Presumption

China Power New Energy To Be Delisted After SOE Injection Abandoned

Quiddity Advisors

Event-Driven

China Power New Energy Development Co / Event-Driven

China Power New Energy Development Co (735 HK)

On the 28 March, SOE State Power Investment Corporation (SPIC) <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2019/0328/ltn201903282227.pdf" target="_blank">announced</a> an intention to privatise <a href="https://www.smartkarma.com/entities/17653" target="_blank" data-smartkarma-citation="entities:17653:1">China Power New Energy Development Co (735 HK)</a> by way of a Scheme at $5.45/share, a 41.9% premium to last close and a 78.1% premium to the 30-day average.
A scrip alternative (6 New shares for one Scheme shares) into an unlisted vehicle under SPIC is also available.
The Scheme Document has now been <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2019/0620/ltn20190620019.pdf" target="_blank">dispatche</a>d. The Scheme Meeting is to be held on 12 July with payment expected on 28 August. The IFA has given a "fair and reasonable" opinion and recommends independent shareholders take the cash option.
China Three Gorges (CTG), CPNED's largest shareholder with 27.10%, had given an irrevocable undertaking to vote for the Scheme in the initial announcement and to elect the share alternative. The SFC has now concluded CTG is deemed not to be acting in concert and is therefore permitted to vote at the Scheme Meeting.
As the effective date for the Scheme is expected to be the 19 August, shareholders will be entitled to the 2018 dividend of RMB0.0546/share. The record date is the 27 June - the 21 June is the latest date for lodging the transfer of shares to become entitled.
This looks like a pretty clean deal. The stock is currently trading tight at a gross/annualised spread of 1.5%/8.1%. I recommend shareholders vote For the Scheme.

On the 28 March, SOE State Power Investment Corporation (SPIC) announced an intention to privatise China Power New Energy Development Co (735 HK) by way of a Scheme at $5.45/share, a 41.9% premium to last close and a 78.1% premium to the 30-day average.
A scrip alternative (6 New shares for one Scheme shares) into an unlisted vehicle under SPIC is also available.
The Scheme Document has now been dispatched. The Scheme Meeting is to be held on 12 July with payment expected on 28 August. The IFA has given a "fair and reasonable" opinion and recommends independent shareholders take the cash option.
China Three Gorges (CTG), CPNED's largest shareholder with 27.10%, had given an irrevocable undertaking to vote for the Scheme in the initial announcement and to elect the share alternative. The SFC has now concluded CTG is deemed not to be acting in concert and is therefore permitted to vote at the Scheme Meeting.
As the effective date for the Scheme is expected to be the 19 August, shareholders will be entitled to the 2018 dividend of RMB0.0546/share. The record date is the 27 June - the 21 June is the latest date for lodging the transfer of shares to become entitled.
This looks like a pretty clean deal. The stock is currently trading tight at a gross/annualised spread of 1.5%/8.1%. I recommend shareholders vote For the Scheme.

China Power New Energy Development Co

China Power's Scheme Document Dispatched