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

Healius: Australian Clinical Labs' Opportunistic Merger Proposal

Quiddity Advisors

Event-Driven

<div>
<p>On the 3 January, <a href="https://www.smartkarma.com/entities/6296" target="_blank" data-smartkarma-citation="entities:6296:1" rel="noopener">Healius (HLS AU)</a>, a leading owner of general practice clinics and pathology centres in Australia, <a href="https://www.asx.com.au/asxpdf/20190103/pdf/441n7r99jdl9fs.pdf" target="_blank" rel="noopener">announced</a> an unsolicited and conditional proposal from <a href="https://www.smartkarma.com/entities/669" target="_blank" data-smartkarma-citation="entities:669:1" rel="noopener">Jangho Group Co Ltd A (601886 CH)</a> at A$3.25/share in a A$2.0bn deal.  At the time, Jangho held 15.9% in Healius and had been on the shareholder register for two years.</p>
<div id="annotable-executive_summary-1">The Offer price was a 33.2% premium to the undisturbed price but below the 12-month high of A$4.09 in March 2018. Optically and when referenced to closest peer <a href="https://www.smartkarma.com/entities/14466" target="_blank" data-smartkarma-citation="entities:14466:1" rel="noopener">Sonic Healthcare (SHL AU)</a>, the offer price appeared light.</div>
</div>
<div></div>
<div>Reflecting the highly conditional nature of the proposal, Healius' board <a href="https://www.asx.com.au/asxpdf/20190107/pdf/441q12jplcykk8.pdf" target="_blank" rel="noopener">rejected</a> the proposal as it was considered opportunistic and fundamentally undervalued the company.</div>
<div></div>
<div>Then everything went quiet. Local media reported that Jangho's bid raised concerns in Canberra as to the security of Australian Defence Force medical reports; however, Healius CEO Malcolm Parmenter defused that argument, and simply stated Jangho's Offer was not entertained on account of its highly conditional nature.</div>
<div></div>
<div><strong>The New News</strong></div>
<div>After the close of trading today, PE-outfit <a href="https://www.partnersgroup.com/en/" target="_blank" rel="noopener">Partners Group</a> <a href="https://www.asx.com.au/asxpdf/20200225/pdf/44ffm7pd40y1kq.pdf" target="_blank" rel="noopener">announced</a> it had acquired, via an option deed with Jangho, a relevant interest in 15.88% of the shares in Healius.</div>
<div></div>
<div>Shortly afterward, Healius <a href="https://www.asx.com.au/asxpdf/20200225/pdf/44ffv1d3651vgv.pdf" target="_blank" rel="noopener">announced</a> a non-binding indicative proposal from Partners at $3.40/share, a 23% premium to last close, by way of a Scheme. Healius said it will assess the proposal. </div>
<div></div>
<div>
<p>More below the fold.</p>
</div>
<div>
<p></p>
</div>


On the 3 January, Healius (HLS AU), a leading owner of general practice clinics and pathology centres in Australia, announced an unsolicited and conditional proposal from Jangho Group Co Ltd A (601886 CH) at A$3.25/share in a A$2.0bn deal.  At the time, Jangho held 15.9% in Healius and had been on the shareholder register for two years.
The Offer price was a 33.2% premium to the undisturbed price but below the 12-month high of A$4.09 in March 2018. Optically and when referenced to closest peer Sonic Healthcare (SHL AU), the offer price appeared light.


Reflecting the highly conditional nature of the proposal, Healius' board rejected the proposal as it was considered opportunistic and fundamentally undervalued the company.

Then everything went quiet. Local media reported that Jangho's bid raised concerns in Canberra as to the security of Australian Defence Force medical reports; however, Healius CEO Malcolm Parmenter defused that argument, and simply stated Jangho's Offer was not entertained on account of its highly conditional nature.

The New News
After the close of trading today, PE-outfit Partners Group announced it had acquired, via an option deed with Jangho, a relevant interest in 15.88% of the shares in Healius.

Shortly afterward, Healius announced a non-binding indicative proposal from Partners at $3.40/share, a 23% premium to last close, by way of a Scheme. Healius said it will assess the proposal. 


More below the fold.





Healius

Healius: Partners And Heads In The Cloud