Wumart - Four Blocking Stakes, can this deal get through?

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

20 Oct 2015, Wumei Holdings and Wumart Stores jointly announced:<div class="sk-insight-content__block"><ol><li>Proposed withdrawal of listing of the H Shares of Wumart Stores ("1025 HK")</li><li>Voluntary Conditional Offer for all the issued H shares in &nbsp;Wumart not already owned by the Offerors</li><li>Voluntary Conditional Offer for all the issued A shares in Wumart&nbsp;not already owned by the Offerors.</li></ol></div>The offer is &nbsp;HKD 6.22 in cash / H share and RMB 5.07 in cash / A share. The offers have&nbsp;been declared as final.The Class Meeting is set on 24 Dec 2015.&nbsp;Wumart is trading at a spread of ~7%+ at the time of writing this note.We have spoken to parties closely connected with the deal to help us answer this question...Is it worth the risk to be entering this deal now?&nbsp;

20 Oct 2015, Wumei Holdings and Wumart Stores jointly announced:Proposed withdrawal of listing of the H Shares of Wumart Stores ("1025 HK")Voluntary Conditional Offer for all the issued H shares in &nbsp;Wumart not already owned by the OfferorsVoluntary Conditional Offer for all the issued A shares in Wumart&nbsp;not already owned by the Offerors.The offer is &nbsp;HKD 6.22 in cash / H share and RMB 5.07 in cash / A share. The offers have&nbsp;been declared as final.The Class Meeting is set on 24 Dec 2015.&nbsp;Wumart is trading at a spread of ~7%+ at the time of writing this note.We have spoken to parties closely connected with the deal to help us answer this question...Is it worth the risk to be entering this deal now?&nbsp;

Wumart Stores Inc H

Is It Worth the Risk Now?