Value Investor, Frontier Asia Capital

Winston Chu

Value Investor

Frontier Asia Capital

Equity Bottom-Up

<p>Qihoo 360 now trades at a 6% spread to privatization offer despite a 100% certainty of being realized.  While I believe that markets are not efficient, this type of riskless opportunity is quite rare.  Let's quickly go over the hurdles for privatization:</p><ul>
<li>NDRC approval</li>
<li>Ministry of Commerce (MOFCOM) approval</li>
<li>Shareholder vote in EGM</li>
<li>Financing</li>
<li>SAFE allowing for financing to be moved offshore for transaction</li>
</ul><p>Now let's piece together the events that give us this conviction:</p><ul><li>
<a href="http://www.prnewswire.com/news-releases/qihoo-360-announces-shareholder-approval-of-merger-agreement-300243230.html" target="_blank">Shareholders approved</a>…</li></ul>

Qihoo 360 now trades at a 6% spread to privatization offer despite a 100% certainty of being realized.  While I believe that markets are not efficient, this type of riskless opportunity is quite rare.  Let's quickly go over the hurdles for privatization:
NDRC approval
Ministry of Commerce (MOFCOM) approval
Shareholder vote in EGM
Financing
SAFE allowing for financing to be moved offshore for transaction
Now let's piece together the events that give us this conviction:
Shareholders approved…

Qihoo 360 Technology

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