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

StubWorld: Reverse Intouch's Stub; (Potentially) Set Up PICC (1339 HK)'s

Intouch Holdings: Gulf's Inexplicable Offer

StubWorld: Intouch Sell-Off As Investors Follow Temasek's Lead

Intouch Placement - Wide Discount to NAV but Could Be Held Back by Overhang

Snippets #37: Intouch's Financing Bet, Healthcare Hun!

StubWorld: Intouch's Discount Back Down To Temasek Sell-Off Levels

Quiddity Advisors

Event-Driven

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As discussed by <a href="https://www.smartkarma.com/profiles/zhen-zhou-toh" target="_blank" data-smartkarma-citation="accounts:673" rel="noopener">Zhen Zhou, Toh</a> in <a href="https://skr.ma/kDRBk" target="_blank" rel="noopener">Intouch Placement - Wide Discount to NAV but Could Be Held Back by Overhang</a>,  Temasek is understood to be selling 135.2m shares of <a href="https://www.smartkarma.com/entities/intouch-holdings-pcl" target="_blank" data-smartkarma-citation="entities:17638:1" rel="noopener">Intouch Holdings (INTUCH TB)</a> at between Bt45.12-Bt46.3/share, or a discount of 2% to 4.5% to the prior closing price.
The news is sourced from Bloomberg. There is currently no announcement on SET. 
The bookrunner is Credit Suisse and there is believed to be a 60-day lock-up.
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This latest placement arrives just 7 months after the placement in August last year (discussed in <a href="https://skr.ma/dbL9H" target="_blank" rel="noopener">StubWorld: Intouch Sell-Off As Investors Follow Temasek's Lead</a>), wherein 257.1mn shares or 8.02% of Intouch was sold by Temasek at Bt60.75/share.
Should this latest placement complete - and there is no suggestion it won't - Temasek would hold a direct stake of ~5.8%. That would be approximately 9% of post-selldown float.
I see no commercial reason why Temasek would want to hold this minority stake. And given this placement is done at Intouch's widest NAV discount (historically, from available records), and below the entry price from back in 2006 (ignoring dividends), this is an overhang until cleared out.
But at these levels, it looks like it is priced in.

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As discussed by Zhen Zhou, Toh in Intouch Placement - Wide Discount to NAV but Could Be Held Back by Overhang,  Temasek is understood to be selling 135.2m shares of Intouch Holdings (INTUCH TB) at between Bt45.12-Bt46.3/share, or a discount of 2% to 4.5% to the prior closing price.
The news is sourced from Bloomberg. There is currently no announcement on SET. 
The bookrunner is Credit Suisse and there is believed to be a 60-day lock-up.

This latest placement arrives just 7 months after the placement in August last year (discussed in StubWorld: Intouch Sell-Off As Investors Follow Temasek's Lead), wherein 257.1mn shares or 8.02% of Intouch was sold by Temasek at Bt60.75/share.
Should this latest placement complete - and there is no suggestion it won't - Temasek would hold a direct stake of ~5.8%. That would be approximately 9% of post-selldown float.
I see no commercial reason why Temasek would want to hold this minority stake. And given this placement is done at Intouch's widest NAV discount (historically, from available records), and below the entry price from back in 2006 (ignoring dividends), this is an overhang until cleared out.
But at these levels, it looks like it is priced in.





Intouch: Temasek Trims Stake; More To Come