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

Huifu Payment (1806 HK): Scheme Doc Out. IFA Says Fair

Huifu Payment (1806 HK): Early Withdrawal?

Huifu Payment IPO Review - Regulation May Take Away a Major Source of Income

Huifu Payment IPO Preview: Peel Back the Layers to Unearth the True Picture

Quiddity Advisors

Event-Driven

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Third-party service provider <a href="https://www.smartkarma.com/entities/huifu-payment-ltd" target="_blank" data-smartkarma-citation="entities:27145:1" rel="noopener">Huifu Payment Limited (1806 HK)</a> was <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/1218/2020121800101.pdf" target="_blank" rel="noopener">suspended</a> ahead of trading this previous Friday "pursuant to the Hong Kong Code on Takeovers and Mergers". Shares last changed hands at HK$2.76/share. 
An Offer by way of a Scheme has now been <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/1223/2020122300031.pdf" target="_blank" rel="noopener">announced</a>. Scheme shares will be cancelled in exchange for either:
a) $3.50/share cash, a 26.8% premium to last close; or b) 2.709677 new shares in the Offeror.
Neither the cash nor the scrip consideration will be increased.
The Offeror is an unlisted vehicle owned as to 70.7030%, 24.6620%, and 4.6350% by Zhou Ye, Mu Haijie, and Jin Yuan, who are directors of Huifu. 
These directors and concert parties hold 17.61% of shares out, and will be required to abstain from voting at the Scheme Meeting. 
Key Scheme conditions include at least 75% of Disinterested Shares voting FOR &amp; not more than 10% of the votes attached to ALL the Disinterested Shares against.
Irrevocables totaling 828.738mn shares out or 63.59% have been received. That satisfies the 75% limb.
The headcount test applies as Huifu is Cayman incorporated. 
The irrevocables shareholders - Sampoerna, Bain, Keystone, FIL/Eight Roads, Pacven, and Bright Journey - are all pre-IPO investors. All irrevocables will elect the scrip alternative.
The Offer Price is 53% below where Huifu was listed in June 2018. Yet no single shareholder has the requisite blocking stake, nor do I expect one to emerge.
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More below the fold.
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Third-party service provider Huifu Payment Limited (1806 HK) was suspended ahead of trading this previous Friday "pursuant to the Hong Kong Code on Takeovers and Mergers". Shares last changed hands at HK$2.76/share. 
An Offer by way of a Scheme has now been announced. Scheme shares will be cancelled in exchange for either:
a) $3.50/share cash, a 26.8% premium to last close; or b) 2.709677 new shares in the Offeror.
Neither the cash nor the scrip consideration will be increased.
The Offeror is an unlisted vehicle owned as to 70.7030%, 24.6620%, and 4.6350% by Zhou Ye, Mu Haijie, and Jin Yuan, who are directors of Huifu. 
These directors and concert parties hold 17.61% of shares out, and will be required to abstain from voting at the Scheme Meeting. 
Key Scheme conditions include at least 75% of Disinterested Shares voting FOR &amp; not more than 10% of the votes attached to ALL the Disinterested Shares against.
Irrevocables totaling 828.738mn shares out or 63.59% have been received. That satisfies the 75% limb.
The headcount test applies as Huifu is Cayman incorporated. 
The irrevocables shareholders - Sampoerna, Bain, Keystone, FIL/Eight Roads, Pacven, and Bright Journey - are all pre-IPO investors. All irrevocables will elect the scrip alternative.
The Offer Price is 53% below where Huifu was listed in June 2018. Yet no single shareholder has the requisite blocking stake, nor do I expect one to emerge.

More below the fold.




Huifu Payment Limited

Huifu Payment (1806 HK): Scheme Offer