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

Purchasing the Publican: EI Group as Target

Quiddity Advisors

Event-Driven

On 18th July, TDR-owned UK pub company Stonegate and UK's pub company <a href="https://www.smartkarma.com/entities/enterprise-inns-plc" target="_blank" data-smartkarma-citation="entities:21924:1" rel="noopener">EI Group (EIG LN)</a>  <a href="https://secure.eigroupplc.com/recommended-offer/media/2-7-Announcement.pdf" target="_blank" rel="noopener">announced</a> that they had reached an agreement for Stonegate to acquire EIG at a cash consideration of 285 pence per EIG share (Enterprise Value of £2.97bn and an equity value of £1.27bn), or a premium of 38.5% and 37.7% to the pre-announcement closing price and the 6-month VWAP respectively. This was discussed in <a href="https://www.smartkarma.com/profiles/travis-lundy" target="_blank" data-smartkarma-citation="accounts:25" rel="noopener">Travis Lundy</a>'s insight <a href="https://skr.ma/mHnNj" target="_blank" rel="noopener">Purchasing the Publican: EI Group as Target</a>.
<a href="https://www.smartkarma.com/entities/cheung-kong-property-holding" target="_blank" rel="noopener">CK Asset Holdings (1113 HK)</a> has now <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2019/0819/ltn20190819811.pdf" target="_blank" rel="noopener">announced</a> it will pay $3.28bn for brewery company <a href="https://www.smartkarma.com/entities/greene-king-plc" target="_blank" data-smartkarma-citation="entities:21953:1" rel="noopener">Greene King PLC (GNK LN)</a> by way of a Scheme, and take on additional debt of $2.31bn. Greene King shareholders will receive 850 pence in cash per share, a 51% premium to last close and a three-year high price.
Similar to the EIG transaction, this deal is conditional on the receipt of approval from GNK's Shareholders (representing at least 75% of the votes cast at the GM), European Commission, and/or CMA anti-trust clearances and regulatory clearances from the FCA. The Acquisition is expected to become effective in the fourth quarter of this year.  On an LTM EV/EBITDA multiple, the Offer Price for both transactions is almost identical.
Trading at terms. The Consideration will not be adjusted for the final dividend - for the year ended 28 April 2019 - of 24.4 pence, however, the register closed to participants on the 9 August (i.e. if you buy now you don't get the div).

On 18th July, TDR-owned UK pub company Stonegate and UK's pub company EI Group (EIG LN)  announced that they had reached an agreement for Stonegate to acquire EIG at a cash consideration of 285 pence per EIG share (Enterprise Value of £2.97bn and an equity value of £1.27bn), or a premium of 38.5% and 37.7% to the pre-announcement closing price and the 6-month VWAP respectively. This was discussed in Travis Lundy's insight Purchasing the Publican: EI Group as Target.
CK Asset Holdings (1113 HK) has now announced it will pay $3.28bn for brewery company Greene King PLC (GNK LN) by way of a Scheme, and take on additional debt of $2.31bn. Greene King shareholders will receive 850 pence in cash per share, a 51% premium to last close and a three-year high price.
Similar to the EIG transaction, this deal is conditional on the receipt of approval from GNK's Shareholders (representing at least 75% of the votes cast at the GM), European Commission, and/or CMA anti-trust clearances and regulatory clearances from the FCA. The Acquisition is expected to become effective in the fourth quarter of this year.  On an LTM EV/EBITDA multiple, the Offer Price for both transactions is almost identical.
Trading at terms. The Consideration will not be adjusted for the final dividend - for the year ended 28 April 2019 - of 24.4 pence, however, the register closed to participants on the 9 August (i.e. if you buy now you don't get the div).  

Purchasing the Publican 2: Greene King as Target