Special Situations, Content Strategist, Smartkarma

Crispin Francis

Special Situations, Content Strategist

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Event-Driven

Ja Solar Holdings Co., Ltd. (Ads) / Event-Driven

Ja Solar Holdings Co., Ltd. (Ads) (JASO US)

On 5 June 2015, JA Solar Holdings ("JASO") received a <a href="http://investors.jasolar.com/phoenix.zhtml?c=208005&amp;p=irol-SECText&amp;TEXT=aHR0cDovL2FwaS50ZW5rd2l6YXJkLmNvbS9maWxpbmcueG1sP2lwYWdlPTEwMzIzNjU4JkRTRVE9MCZTRVE9MCZTUURFU0M9U0VDVElPTl9FTlRJUkUmc3Vic2lkPTU3" target="_blank">preliminary non-binding offer</a> from Mr. Baofang Jin, its Chairman and Chief Executive Officer, and Jinglong Group (British Virgin Islands company of which Mr. Baofang Jin is the sole director) to acquire all of the outstanding shares of the Company not already owned by the Offeror.The offer is for US$9.69 per American Depositary Share (“ADS”, each ADS representing five ordinary shares) or US$1.938 per ordinary share in cash, subject to certain conditions.This deal is similar to <a href="http://www.hihuadu.com/2015/06/12/renren-reneged-announced-the-privatization-takes-shares-in-return-tide-lift-25363.html" target="_blank">Renren</a>, <a href="http://www.smartkarma.com/insights/wuxi-s-chairman-and-ally-bridge-offer-46-ads-in-going-private-bid" target="_blank">Wuxi Pharma</a> and Mindray Medical International MBO.The rationale is simple in our opinion, Exchange Arbitrage; Delist from the US and relist in China in the hope of receiving better multiples. <a href="http://www.smartkarma.com/insight_providers/75" target="_blank">Chin-Hwee</a> wrote about this phenomena in his thought provoking piece "<a href="http://www.smartkarma.com/insights/a-herd-of-fine-horses-are-starting-to-head-back-to-their-home-market" target="_blank">A Herd of Fine Horses</a>"Downside risk is limited and the final offer could potentially be higher than the preliminary offer of USD 9.69.

On 5 June 2015, JA Solar Holdings ("JASO") received a preliminary non-binding offer from Mr. Baofang Jin, its Chairman and Chief Executive Officer, and Jinglong Group (British Virgin Islands company of which Mr. Baofang Jin is the sole director) to acquire all of the outstanding shares of the Company not already owned by the Offeror.The offer is for US$9.69 per American Depositary Share (“ADS”, each ADS representing five ordinary shares) or US$1.938 per ordinary share in cash, subject to certain conditions.This deal is similar to Renren, Wuxi Pharma and Mindray Medical International MBO.The rationale is simple in our opinion, Exchange Arbitrage; Delist from the US and relist in China in the hope of receiving better multiples. Chin-Hwee wrote about this phenomena in his thought provoking piece "A Herd of Fine Horses"Downside risk is limited and the final offer could potentially be higher than the preliminary offer of USD 9.69.

FLASHNOTE JA Solar - Cheeky Buyout Attempt by the Management