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

Quiddity Advisors

Event-Driven

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<p>Back in November last year, Australia and New Zealand's largest integrated consumer-facing pet retail and vet services company <a href="https://www.smartkarma.com/entities/18873" target="_blank" data-smartkarma-citation="entities:18873:1" rel="noopener">Greencross Ltd (GXL AU)</a> entered a <a href="https://www.asx.com.au/asxpdf/20181105/pdf/4400grpk8y3y6c.pdf" target="_blank" rel="noopener">Scheme Implementation Agreement</a> with TPG to acquire 100% of shares at $5.55/share, a 44.5% premium to the 1-month VWAP (&amp; 34.1% premium to the undisturbed price), which backs out a ~10x FY18 EV/EBITDA and 18x FY18 PER.</p>
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<p>At the time, I mentioned <a href="https://www.smartkarma.com/entities/24331" target="_blank" data-smartkarma-citation="entities:24331:1" rel="noopener">National Veterinary Care (NVL AU)</a> was seen as Greencross' key - though considerably smaller - peer. Its business model is slightly different as revenue relates mainly to veterinary clinics, with income also sourced from management services for independent clinics. </p>
<div id="annotable-detail-34">NVL has now <a href="https://www.asx.com.au/asxpdf/20191216/pdf/44clz8zdtg1v72.pdf" target="_blank" rel="noopener">entered</a> into a Scheme Implementation Deed with Australian  Veterinary Owner's League, better known as Vet Partners, to be taken private at A$3.70/share (cash), a 56.8% premium to last close, in a ~US$170mn deal.</div>
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<div>The Scheme has limited conditions including NVL shareholder approval, FIRB and no MACs.</div>
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<p>Management supports the Offer in the absence of a superior proposal. This is a done deal, with expected completion in early April 2020, and it should trade tight to terms.</p>
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Back in November last year, Australia and New Zealand's largest integrated consumer-facing pet retail and vet services company Greencross Ltd (GXL AU) entered a Scheme Implementation Agreement with TPG to acquire 100% of shares at $5.55/share, a 44.5% premium to the 1-month VWAP (&amp; 34.1% premium to the undisturbed price), which backs out a ~10x FY18 EV/EBITDA and 18x FY18 PER.

At the time, I mentioned National Veterinary Care (NVL AU) was seen as Greencross' key - though considerably smaller - peer. Its business model is slightly different as revenue relates mainly to veterinary clinics, with income also sourced from management services for independent clinics. 
NVL has now entered into a Scheme Implementation Deed with Australian  Veterinary Owner's League, better known as Vet Partners, to be taken private at A$3.70/share (cash), a 56.8% premium to last close, in a ~US$170mn deal.



The Scheme has limited conditions including NVL shareholder approval, FIRB and no MACs.
 


Management supports the Offer in the absence of a superior proposal. This is a done deal, with expected completion in early April 2020, and it should trade tight to terms.



NVL: Furry Profitable After Greencross Offer