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

I previously wrote on the privatization of New World China Land ("NWCL") by New World Development ("NWD"). In my last insights, the focus was on NWCL. This time around, I turn my attention to NWD which is trading at a substantial discount to its NAV.<ul><li>NWD privatization of NWCL at a price below its RNAV widens NWD's discount to NAV</li><li>Taking full control of NWCL reduces inefficiency in the its current holding structure; and</li><li>Taking full control of NWCL also removes the non-compete clause that NWD has in place with NWCL.</li></ul>From our pro-forma analysis, the privatization of NWCL results in a net uplift of NWD's NAV. In addition, the discount that the market applied to NWCL value under NWD will be removed, this should lead to NWD outperforming...

I previously wrote on the privatization of New World China Land ("NWCL") by New World Development ("NWD"). In my last insights, the focus was on NWCL. This time around, I turn my attention to NWD which is trading at a substantial discount to its NAV.NWD privatization of NWCL at a price below its RNAV widens NWD's discount to NAVTaking full control of NWCL reduces inefficiency in the its current holding structure; andTaking full control of NWCL also removes the non-compete clause that NWD has in place with NWCL.From our pro-forma analysis, the privatization of NWCL results in a net uplift of NWD's NAV. In addition, the discount that the market applied to NWCL value under NWD will be removed, this should lead to NWD outperforming...

New World - Huge Discount to NAV with a Hard Catalyst on Its Way