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

CLPH (1589 HK): Free Float Breached As JD.com Bumps Stake

Squeeze Box: The Port Congestion Contagion

JD.com Takes 9.9% Stake in China Logistics Property Holdings (1589:HK): Validation & Valuation

China Logistics (1589 HK): Possible Offer As Major Shareholders Seek Exit

Major Shareholders of CLPH (1589:HK) Selling! Revisiting Narrative & Valuations

Quiddity Advisors

Event-Driven

China Logistics Property Holdings / Event-Driven

China Logistics Property Holdings (1589 HK)

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Back on the 29 December <a href="https://www.smartkarma.com/entities/china-logistics-property-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:22799:1" rel="noopener">China Logistics Property Holdings (1589 HK)</a> (CLPH) <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/1229/2020122901322.pdf" target="_blank" rel="noopener">announced</a> its two largest shareholders - Li Shifa (chairman, holding ~28.2%) and RRJ Capital (~23.35%) - are "conducting a preliminary strategic review of their stakes in the Company, which involves up to approximately 51.5% shareholding of the Company." 
Reportedly the two key shareholders were seeking an exit price of ~$4.70, which is roughly equivalent to a four-year high. If a deal was struck, this would trigger an unconditional mandatory general offer.
This possible Offer was discussed in <a href="https://skr.ma/QiiCi" target="_blank" rel="noopener">China Logistics (1589 HK): Possible Offer As Major Shareholders Seek Exit</a>. 
Then nothing - not even an update pursuant to Rule 3.7 of the Takeovers Code.
Now CLPH has <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0609/2021060900007.pdf" target="_blank" rel="noopener">announced</a> a placement of 220mn new shares (6.67% of shares out, 6.33% on a diluted basis) at a placing price of $3.54/share, an 18.24% discount to last close. Net proceeds are expected to total HK$767mn to new land acquisition and the development and construction of warehousing facilities.
The question is whether Li and RRJ are still in the mix to exit, or whether this placement is mutually exclusive to their end-game?
My initial takeaway is the latter. But shares have been cremated in this morning's trading session.
More below the fold.
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Back on the 29 December China Logistics Property Holdings (1589 HK) (CLPH) announced its two largest shareholders - Li Shifa (chairman, holding ~28.2%) and RRJ Capital (~23.35%) - are "conducting a preliminary strategic review of their stakes in the Company, which involves up to approximately 51.5% shareholding of the Company." 
Reportedly the two key shareholders were seeking an exit price of ~$4.70, which is roughly equivalent to a four-year high. If a deal was struck, this would trigger an unconditional mandatory general offer.
This possible Offer was discussed in China Logistics (1589 HK): Possible Offer As Major Shareholders Seek Exit. 
Then nothing - not even an update pursuant to Rule 3.7 of the Takeovers Code.
Now CLPH has announced a placement of 220mn new shares (6.67% of shares out, 6.33% on a diluted basis) at a placing price of $3.54/share, an 18.24% discount to last close. Net proceeds are expected to total HK$767mn to new land acquisition and the development and construction of warehousing facilities.
The question is whether Li and RRJ are still in the mix to exit, or whether this placement is mutually exclusive to their end-game?
My initial takeaway is the latter. But shares have been cremated in this morning's trading session.
More below the fold.





CLPH (1589 HK): No-Deal Or Business As Usual Following Placement?