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

Discover Singapore: Memtech. ~30% Net Cash Company Trading At 8.3x Ex-Cash PE

Quiddity Advisors

Event-Driven

M-Universe Investments, a vehicle led by the Chuang Family/Keytech which hold 57.7% in <a href="https://www.smartkarma.com/entities/7873" target="_blank" data-smartkarma-citation="entities:7873:1">Memtech International (MTEC SP)</a>, have <a href="https://links.sgx.com/FileOpen/Memtech-Cash%20Offer.ashx?App=Announcement&amp;FileID=559619" target="_blank">announced</a> a voluntary conditional offer for the precision components manufacturer at $1.35/share cash - a 23.9% premium to last close and a 31.5% premium to the one-month VWAP.
The Offer price is Final.
M-Universe, the Offeror, comprises the Chuang  Family, Keytech Investments (owned by the Chuang Family and management team) and Universal Global Tech (UGT), a wholly-owned subsidiary of <a href="https://www.smartkarma.com/entities/7720" target="_blank" data-smartkarma-citation="entities:7720:1">Universal Scientific Industrial (Shanghai) (601231 CH)</a>.
The Offer is conditional on 90% acceptance - including the Offeror's and concert parties' shares - with the Offeror reserving the right to reduce this to 50%. 
Trade tensions and challenging global markets have negatively impacted Memtech's financials. <a href="https://links.sgx.com/FileOpen/Memtech%20FY2018%20-%20Press%20Release.ashx?App=Announcement&amp;FileID=545290" target="_blank">FY18 earnings</a> declined by 32% yoy to US$9.6mn, against a 13.2% increase in revenue to US$19.2mn. The margin squeeze was due to a host of issues including higher raw material prices, product packaging costs, and labour costs, together with higher depreciation costs related to new equipment, and reduced manufacturing yields. <a href="https://links.sgx.com/FileOpen/Memtech%201Q2019%20-%20Press%20Release.ashx?App=Announcement&amp;FileID=555913" target="_blank">1Q19's bottom line</a> declined by 15.6%.
Shares are trading tight at a gross spread of ~1%.  Pricing under the Offer appears fair with respect to peers and precedent transaction. I recommend shareholders tender into the Offer.
<hr>
The <a href="https://www.smartkarma.com/insights/quiddity-singapore-m-a-guide-2019" target="_blank">Quiddity Singapore M&amp;A Guide 2019</a> is now published with guidelines to the relevant rules, regulations, documentation, and pointers to the Singapore M&amp;A landscape. Others in the series to date are <a href="https://www.smartkarma.com/insights/quiddity-hong-kong-m-a-guide-2019" target="_blank">Hong Kong</a>, <a href="https://www.smartkarma.com/insights/quiddity-japan-m-a-guide-2019" target="_blank">Japan</a>, and <a href="https://www.smartkarma.com/insights/quiddity-thailand-m-a-guide-2019" target="_blank">Thailand</a>. Watch for more soon.

M-Universe Investments, a vehicle led by the Chuang Family/Keytech which hold 57.7% in Memtech International (MTEC SP), have announced a voluntary conditional offer for the precision components manufacturer at $1.35/share cash - a 23.9% premium to last close and a 31.5% premium to the one-month VWAP.
The Offer price is Final.
M-Universe, the Offeror, comprises the Chuang  Family, Keytech Investments (owned by the Chuang Family and management team) and Universal Global Tech (UGT), a wholly-owned subsidiary of Universal Scientific Industrial (Shanghai) (601231 CH).
The Offer is conditional on 90% acceptance - including the Offeror's and concert parties' shares - with the Offeror reserving the right to reduce this to 50%. 
Trade tensions and challenging global markets have negatively impacted Memtech's financials. FY18 earnings declined by 32% yoy to US$9.6mn, against a 13.2% increase in revenue to US$19.2mn. The margin squeeze was due to a host of issues including higher raw material prices, product packaging costs, and labour costs, together with higher depreciation costs related to new equipment, and reduced manufacturing yields. 1Q19's bottom line declined by 15.6%.
Shares are trading tight at a gross spread of ~1%.  Pricing under the Offer appears fair with respect to peers and precedent transaction. I recommend shareholders tender into the Offer.

The Quiddity Singapore M&amp;A Guide 2019 is now published with guidelines to the relevant rules, regulations, documentation, and pointers to the Singapore M&amp;A landscape. Others in the series to date are Hong Kong, Japan, and Thailand. Watch for more soon.

Universal Scientific Industrial (Shanghai) (601231 CH)

Universal Scientific Industrial (Shanghai)

Memtech International

Memtech's Precision Exit