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

On 26 November 2018, 28.22%-shareholder <a href="https://www.smartkarma.com/entities/22228" target="_blank" data-smartkarma-citation="entities:22228:1">DNO ASA (DNO NO)</a> <a href="https://www.dno.no/en/investor-relations/announcements/2018/dno-to-make-cash-offer-for-all-shares-of-faroe-petroleum-plc/" target="_blank">announced</a> a cash offer for <a href="https://www.smartkarma.com/entities/23304" target="_blank" data-smartkarma-citation="entities:23304:1">Faroe Petroleum (FPM LN)</a> of GBP 1.52/share,  a 21% premium to the pre-announcement price on November 23rd, but a 44.8% premium to Faroe's share price of GBP 1.05 as at 3 April 2018, the last business day before DNO announced its <a href="https://www.dno.no/en/investor-relations/announcements/2018/dno-announces-acquisition-of-minority-shareholding-in-faroe-petroleum/" target="_blank">first acquisition</a> of shares in Faroe. 
This is a hostile offer with DNO openly criticising the management's corporate-governance culture, share performance, operational abilities, and deal-making. An indication of the level of this hostility can be found in the <a href="https://www.fp.fo/wp-content/uploads/2018/12/dno-offer-for-faroe-petroleum_-offer-document-12-december-2018.pdf" target="_blank">circular</a> to shareholders (page 9):  "Since listing, no dividends have been paid and no capital otherwise returned to shareholders. Meanwhile, back at the ranch, the Faroe directors have been awarded a high number of share options at nil cost." In response, Faroe's board describes the deal as "opportunistic, unsolicited, and inadequate", and has advised the shareholders to reject the offer. 
The deal was initially conditional on receiving a minimum acceptance of 57.5% of Faroe's total issued share capital; however after acquiring shares in the market, DNO announced yesterday it held 30% of issued shares in Faroe, triggering a mandatory offer, and Faroe is now therefore subject to takeover regulation, and the deal requires a lower acceptance threshold of 50%.
Currently trading slightly through terms. Together with shares accepting its offer, DNO currently has <a href="https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/FPM/13922828.html" target="_blank">43.1%</a>. 
The offer has now automatically been extended until the 18 January and DNO has until the 27 January to improve or revise the Offer. This may need a slight kiss to push it over the line.

On 26 November 2018, 28.22%-shareholder DNO ASA (DNO NO) announced a cash offer for Faroe Petroleum (FPM LN) of GBP 1.52/share,  a 21% premium to the pre-announcement price on November 23rd, but a 44.8% premium to Faroe's share price of GBP 1.05 as at 3 April 2018, the last business day before DNO announced its first acquisition of shares in Faroe. 
This is a hostile offer with DNO openly criticising the management's corporate-governance culture, share performance, operational abilities, and deal-making. An indication of the level of this hostility can be found in the circular to shareholders (page 9):  "Since listing, no dividends have been paid and no capital otherwise returned to shareholders. Meanwhile, back at the ranch, the Faroe directors have been awarded a high number of share options at nil cost." In response, Faroe's board describes the deal as "opportunistic, unsolicited, and inadequate", and has advised the shareholders to reject the offer. 
The deal was initially conditional on receiving a minimum acceptance of 57.5% of Faroe's total issued share capital; however after acquiring shares in the market, DNO announced yesterday it held 30% of issued shares in Faroe, triggering a mandatory offer, and Faroe is now therefore subject to takeover regulation, and the deal requires a lower acceptance threshold of 50%.
Currently trading slightly through terms. Together with shares accepting its offer, DNO currently has 43.1%. 
The offer has now automatically been extended until the 18 January and DNO has until the 27 January to improve or revise the Offer. This may need a slight kiss to push it over the line. 

Faroe Petroleum

DNO Closes In On Faroe