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/cimc-tianda-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:15431:1" rel="noopener">CIMC-TianDa Holdings (445 HK)</a> is China’s leading player in airport equipment and firefighting &amp; rescue equipment, with growing businesses in material handling systems and automated parking systems. Originally China Fire Safety Enterprise, CIMC-Tianda was created through the reverse takeover of Pteris Group, which resulted in <a href="https://www.smartkarma.com/entities/china-international-marine-cntnrs-gp-ltd" target="_blank" data-smartkarma-citation="entities:11752:1" rel="noopener">China International Marine Cntnrs Gp (2039 HK)</a> becoming the majority shareholder. </p><p>CIMC-Tianda has received a privatisation offer at HK$0.266 in cash per share. The joint offerors are Expedition Holding and Sharp Vision. Expedition Holding is wholly-owned by Macao QiXin One Belt One Road Investment Fund, a private equity fund, while Sharp Vision is a wholly-owned subsidiary of CIMC. The privatisation price is a 20.36% premium to the share price of HK$0.221 on the last trading day (28 September).</p><div class="content-highlight"><p>The key conditions precedents are the headcount test and the scheme approved by at least 75% disinterested shareholders (&lt;10% disinterested shareholders rejection). <a href="https://www.smartkarma.com/entities/wison-engineering-services-co" target="_blank" data-smartkarma-citation="entities:24534:1" rel="noopener">Wison Engineering Services Co (2236 HK)</a> will fully exercise its conversion rights (420.2 million new shares converted from its convertible bonds) before the scheme record date. The joint offerors and concert parties represent 12,566.9 million shares or 75.53% of shares outstanding (including Wison Energy’s convertibles). Disinterested scheme shareholders represent 4,071.2 million shares or 24.47% of shares outstanding which implies the 10% blocking stake is 407.1 million shares or 2.45% of shares outstanding (including Wison Energy’s convertibles). Overall, we believe that the privatisation price while not a knockout bid is good enough to get the proposal over the line. </p></div>

CIMC-TianDa Holdings (445 HK) is China’s leading player in airport equipment and firefighting &amp; rescue equipment, with growing businesses in material handling systems and automated parking systems. Originally China Fire Safety Enterprise, CIMC-Tianda was created through the reverse takeover of Pteris Group, which resulted in China International Marine Cntnrs Gp (2039 HK) becoming the majority shareholder. CIMC-Tianda has received a privatisation offer at HK$0.266 in cash per share. The joint offerors are Expedition Holding and Sharp Vision. Expedition Holding is wholly-owned by Macao QiXin One Belt One Road Investment Fund, a private equity fund, while Sharp Vision is a wholly-owned subsidiary of CIMC. The privatisation price is a 20.36% premium to the share price of HK$0.221 on the last trading day (28 September).The key conditions precedents are the headcount test and the scheme approved by at least 75% disinterested shareholders (&lt;10% disinterested shareholders rejection). Wison Engineering Services Co (2236 HK) will fully exercise its conversion rights (420.2 million new shares converted from its convertible bonds) before the scheme record date. The joint offerors and concert parties represent 12,566.9 million shares or 75.53% of shares outstanding (including Wison Energy’s convertibles). Disinterested scheme shareholders represent 4,071.2 million shares or 24.47% of shares outstanding which implies the 10% blocking stake is 407.1 million shares or 2.45% of shares outstanding (including Wison Energy’s convertibles). Overall, we believe that the privatisation price while not a knockout bid is good enough to get the proposal over the line. 

China International Marine Cntnrs Gp (2039 HK)

CIMC Partners up to Privatise CIMC-TianDa