Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

HK Type 4 license through Ballingal Investment Advisors Ltd. ("BIA" or "BIAL")

BACKGROUND
I have 20+yrs experience in Asia doing alternative strategies (i.e. non-delta1 non long-only) in fixed income, equity derivatives, and activist/catalyst/event-driven and long-short equity strategies with most of that time spent managing money. 

4 years in fixed income macro, 8 years running internal hedge fund and 4yrs investment banking at Citi in Japan, 3 years running an Asia multi-strat portfolio at a hedge fund, 4+yrs as an independent special situations analyst.

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Hydoo International Holding / Event-Driven

Last week, on the 25th of July, with no news in the market or amongst competitors the shares in trade center developer <a href="https://www.smartkarma.com/entities/hydoo-international-holding" target="_blank" data-smartkarma-citation="entities:11083:1" rel="noopener">Hydoo International Holding (1396 HK)</a> saw volume reach 10x the previous three months' average volume and enjoy a 26% intraday price range and a 17% jump by day end. The next day (Friday) the shares were up a further 3.6% onalmost twice the 3-month average volume.Yesterday morning saw <a href="http://www.hydoo.com.cn/UpFiles/bpic/2019-07/20190729092156719.pdf" target="_blank" rel="noopener">news</a> that trading in trade center developer <a href="https://www.smartkarma.com/entities/hydoo-international-holding" target="_blank" data-smartkarma-citation="entities:11083:1" rel="noopener">Hydoo International Holding (1396 HK)</a> had been halted pending the release of an announcement pursuant to the Code on Takeovers and Mergers. <figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/094/318/original/Screenshot%202019-07-29%20at%208.26.22%20PM.png?1564403234" class="editor-image img-responsive" data-smartkarma-image-id="94318"></figure>A bid is likely coming. What kind of bid? Given the fundamentals, I would bet family, though the land bank might attract other developers looking to bolt on something in smaller cities as long as the buyer had a little extra cash to be able to pay down the May 2020 bonds.<hr>As a reference to Hong Kong M&amp;A rules and practices, please see the <a href="https://www.smartkarma.com/insights/quiddity-hong-kong-m-a-guide-2019" target="_blank" data-smartkarma-citation="insights:29174" rel="noopener">Quiddity Hong Kong M&amp;A Guide 2019</a>. For other insights on Hong Kong M&amp;A please see <a href="https://www.smartkarma.com/insights?collection=all-insights&amp;filters=countries%3AHong%20Kong%7Cverticals%3A29" target="_blank" rel="noopener">Hong Kong-related Event-Driven</a> insights.

Last week, on the 25th of July, with no news in the market or amongst competitors the shares in trade center developer Hydoo International Holding (1396 HK) saw volume reach 10x the previous three months' average volume and enjoy a 26% intraday price range and a 17% jump by day end. The next day (Friday) the shares were up a further 3.6% onalmost twice the 3-month average volume.Yesterday morning saw news that trading in trade center developer Hydoo International Holding (1396 HK) had been halted pending the release of an announcement pursuant to the Code on Takeovers and Mergers. A bid is likely coming. What kind of bid? Given the fundamentals, I would bet family, though the land bank might attract other developers looking to bolt on something in smaller cities as long as the buyer had a little extra cash to be able to pay down the May 2020 bonds.As a reference to Hong Kong M&amp;A rules and practices, please see the Quiddity Hong Kong M&amp;A Guide 2019. For other insights on Hong Kong M&amp;A please see Hong Kong-related Event-Driven insights.

Hydoo International (1396 HK) Down ~80% from IPO - A Takeover Bid In the Offing