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 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)

In my initial <a href="http://bit.ly/2JNeDqH" target="_blank">insight</a> on <a href="https://www.smartkarma.com/entities/17653" target="_blank" data-smartkarma-citation="entities:17653:1">China Power New Energy Development Co (735 HK, "CPNED")</a>'s <a href="http://www3.hkexnews.hk/listedco/listconews/SEHK/2019/0328/LTN201903282227.pdf" target="_blank">privatisation</a> by China Power New Energy Limited (the Offeror) by way of a Scheme, I concluded China Three Gorges, CPNED's largest shareholder with 27.10%, will likely be required to abstain at the Court Meeting as it is presumed to be a connected party to the Offeror as per the Takeovers Code.
But the <a href="http://www3.hkexnews.hk/listedco/listconews/SEHK/2019/0328/LTN201903282227.pdf" target="_blank">announcement</a> states that CTG has given an irrevocable undertaking to vote for the Scheme and to elect the share alternative.
It seems illogical to mention in the irrevocable CTG will vote for the Scheme when in actuality it cannot vote. So, which one is it?
The short answer is: CTG cannot currently vote. 
But understanding this requires diving into the minutiae of Hong Kong's Takeovers Code. So I do.

In my initial insight on China Power New Energy Development Co (735 HK, "CPNED")'s privatisation by China Power New Energy Limited (the Offeror) by way of a Scheme, I concluded China Three Gorges, CPNED's largest shareholder with 27.10%, will likely be required to abstain at the Court Meeting as it is presumed to be a connected party to the Offeror as per the Takeovers Code.
But the announcement states that CTG has given an irrevocable undertaking to vote for the Scheme and to elect the share alternative.
It seems illogical to mention in the irrevocable CTG will vote for the Scheme when in actuality it cannot vote. So, which one is it?
The short answer is: CTG cannot currently vote. 
But understanding this requires diving into the minutiae of Hong Kong's Takeovers Code. So I do.

China Three Gorges' Rebuttable Presumption