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

Chong Hing’s Scheme Document, IFA Opinion

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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/chong-hing-bank-ltd" target="_blank" data-smartkarma-citation="entities:344:1" rel="noopener">Chong Hing Bank (1111 HK)</a>/CHB provides banking and related financial services in Hong Kong and the Mainland. It has 34 branches in Hong Kong, 10 branches and sub-branches in Mainland China and one branch in Macau.</p><p>On Wednesday, CHB announced a privatisation offer from Yuexiu Holdings, the largest shareholder which holds 74.97% of outstanding shares. The offeror will offer HK$20.80 per scheme share less a possible dividend adjustment. The offer price is a juicy premium of 97.0% to the last full trading day price of HK$10.56 per share (5 May prior to the trading halt). </p><div class="content-highlight"><p>The key condition is the scheme approved by at least 75% disinterested shareholders (&lt;10% disinterested shareholders rejection). Yuexiu Holdings acquired 326.3 million CHB shares (75.0% of outstanding shares at that time) through a partial offer at HK$35.69 per share in 2014. While the current offer price is materially below the previous partial offer price, we think that the substantial premium of the current offer price to long-term average share prices and P/B multiples makes it likely to be a done deal. </p></div>

Chong Hing Bank (1111 HK)/CHB provides banking and related financial services in Hong Kong and the Mainland. It has 34 branches in Hong Kong, 10 branches and sub-branches in Mainland China and one branch in Macau.On Wednesday, CHB announced a privatisation offer from Yuexiu Holdings, the largest shareholder which holds 74.97% of outstanding shares. The offeror will offer HK$20.80 per scheme share less a possible dividend adjustment. The offer price is a juicy premium of 97.0% to the last full trading day price of HK$10.56 per share (5 May prior to the trading halt). The key condition is the scheme approved by at least 75% disinterested shareholders (&lt;10% disinterested shareholders rejection). Yuexiu Holdings acquired 326.3 million CHB shares (75.0% of outstanding shares at that time) through a partial offer at HK$35.69 per share in 2014. While the current offer price is materially below the previous partial offer price, we think that the substantial premium of the current offer price to long-term average share prices and P/B multiples makes it likely to be a done deal. 

Chong Hing Bank

Chong Hing’s Privatisation Bid