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

Quiddity Advisors

Event-Driven

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<p>On 4th January 2019, <a href="https://www.smartkarma.com/entities/pci-ltd" target="_blank" data-smartkarma-citation="entities:11743:1" rel="noopener">Pci Ltd (PCI SP)</a> <a href="https://links.sgx.com/FileOpen/Pagani.Joint%20Announcement.FinalReleaseVersion.4Jan2019.ashx?App=Announcement&amp;FileID=539535" target="_blank" rel="noopener">announced</a> that Pagani Holding  (an SPV indirectly owned by Platinum Equity Advisors) had made an S$1.33/share cash offer for the company by way of a Scheme. The transaction was discussed in <em><a href="https://skr.ma/E8k2B" target="_blank" rel="noopener">PCI Ltd - All Over Before It Starts</a></em>. </p>
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<p><a href="https://www.smartkarma.com/entities/13010" target="_blank" data-smartkarma-citation="entities:13010:1" rel="noopener">Chuan Hup Holdings (CH SP)</a> (CHH), which held 76.7% in PCI, gave an irrevocable undertaking to vote its stake in favour of the scheme resolution, and to reject or vote against any competing offers. PCI's executive chairman, Peh Kwee Chim (PKC), is Chuan Hup's majority owner. </p>
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<p>With the 75%-for scheme condition satisfied and a lifetime-high takeover price, this was a done deal. The Scheme became effective on the <a href="https://links.sgx.com/FileOpen/Pagani.EffectiveDateAnnouncement29Apr19.ashx?App=Announcement&amp;FileID=556846" target="_blank" rel="noopener">29 April</a>.</p>
<p>Following the sale of PCI, CHH 's remaining ops included investment holding and trading, and a property segment comprising property development and investment in properties. The two segments accounted for ~9% &amp; 16% of revenue in FY19 &amp; FY18 (June Year-End).</p>
<p>But subsequent to the sale, CHH was cashed-up with a net cash position of US$108mn (Dec-19) in cash plus a further US$21mn in "investment securities", for a total of ~S$183mn, versus its market cap of S$180mn. This is after paying a special dividend of S$0.09/share (~S$83mn) in FY19.</p>
<p>On the 14 February, CHH <a href="https://www.smartkarma.com/compose/insight/38326/via%20an%20off-market%20acquisition" target="_blank" rel="noopener">announced</a> it was ceasing quarterly reporting. </p>
<p>On the <a href="http://chuanhup.listedcompany.com/newsroom/20200305_173151_C33_PLOK1Y33Y09726W9.1.pdf" target="_blank" rel="noopener">5 March</a>, PKC acquired 2.09% in CHH, via an off-market acquisition, taking his stake to 53.621%.</p>
<p>The chairman clearly sees a good deal above where shares currently trade. Coupled with the cessation of the quarterly reporting, one wonders if there are larger restructuring plans ahead for CHH.</p>
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On 4th January 2019, Pci Ltd (PCI SP) announced that Pagani Holding  (an SPV indirectly owned by Platinum Equity Advisors) had made an S$1.33/share cash offer for the company by way of a Scheme. The transaction was discussed in PCI Ltd - All Over Before It Starts. 


Chuan Hup Holdings (CH SP) (CHH), which held 76.7% in PCI, gave an irrevocable undertaking to vote its stake in favour of the scheme resolution, and to reject or vote against any competing offers. PCI's executive chairman, Peh Kwee Chim (PKC), is Chuan Hup's majority owner. 


With the 75%-for scheme condition satisfied and a lifetime-high takeover price, this was a done deal. The Scheme became effective on the 29 April.
Following the sale of PCI, CHH 's remaining ops included investment holding and trading, and a property segment comprising property development and investment in properties. The two segments accounted for ~9% &amp; 16% of revenue in FY19 &amp; FY18 (June Year-End).
But subsequent to the sale, CHH was cashed-up with a net cash position of US$108mn (Dec-19) in cash plus a further US$21mn in "investment securities", for a total of ~S$183mn, versus its market cap of S$180mn. This is after paying a special dividend of S$0.09/share (~S$83mn) in FY19.
On the 14 February, CHH announced it was ceasing quarterly reporting. 
On the 5 March, PKC acquired 2.09% in CHH, via an off-market acquisition, taking his stake to 53.621%.
The chairman clearly sees a good deal above where shares currently trade. Coupled with the cessation of the quarterly reporting, one wonders if there are larger restructuring plans ahead for CHH.


Chuan Hup: The Chairman Knows A Good Deal