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

Rivera (281 HK): Limited Options As Scheme Meeting Firmed

Quiddity Advisors

Event-Driven

<p>Last night, <a href="https://www.smartkarma.com/entities/rivera-holdings-ltd" target="_blank" data-smartkarma-citation="entities:16102:1" rel="noopener">Rivera Holdings (281 HK)</a>, an investment holding company, which <em>occasionally</em> dabbles in property development and investment in Hong Kong, Macau, and China, <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0118/2021011801106.pdf" target="_blank" rel="noopener">announced</a> a proposed privatisation by way of a Scheme.</p>
<div>Scheme shares will be cancelled in exchange for $0.65/share cash, a 62.5% premium to last close. The Offer Price will not be increased.</div>
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<p>The Offeror is an unlisted vehicle owned as to 66% by Hsu Feng, 17% by Albert Tong, and 17% by Charles Tong, all of whom are directors. </p>
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<p>These directors, along with concert parties and rollover shareholders hold 74.99% of shares out, and will be required to abstain from voting at the Scheme Meeting. </p>
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<p>Key Scheme conditions include at least 75% of Independent Shares voting FOR &amp; not more than 10% of the votes attached to ALL the Independent Shares AGAINST.</p>
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<p>The headcount test does <strong>not</strong> apply as Rivera is Hong Kong incorporated. </p>
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<p>Of interest is Rivera's follow-up <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0118/2021011801108.pdf" target="_blank" rel="noopener">announcemen</a>t in which the Stock Exchange has reached a decision that Rivera has "<em>failed to carry out a business with a sufficient level of operations and assets of sufficient value</em>". </p>
<p>The takeaway is that if the Scheme fails, the Stock Exchange will consider an immediate application of the trading suspension in Rivera.</p>
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<p>More below the fold.</p>
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Last night, Rivera Holdings (281 HK), an investment holding company, which occasionally dabbles in property development and investment in Hong Kong, Macau, and China, announced a proposed privatisation by way of a Scheme.
Scheme shares will be cancelled in exchange for $0.65/share cash, a 62.5% premium to last close. The Offer Price will not be increased.


The Offeror is an unlisted vehicle owned as to 66% by Hsu Feng, 17% by Albert Tong, and 17% by Charles Tong, all of whom are directors. 


These directors, along with concert parties and rollover shareholders hold 74.99% of shares out, and will be required to abstain from voting at the Scheme Meeting. 


Key Scheme conditions include at least 75% of Independent Shares voting FOR &amp; not more than 10% of the votes attached to ALL the Independent Shares AGAINST.


The headcount test does not apply as Rivera is Hong Kong incorporated. 


Of interest is Rivera's follow-up announcement in which the Stock Exchange has reached a decision that Rivera has "failed to carry out a business with a sufficient level of operations and assets of sufficient value". 
The takeaway is that if the Scheme fails, the Stock Exchange will consider an immediate application of the trading suspension in Rivera.


More below the fold.


Rivera (281 HK): Scheme Or Face Delisting