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

Spring REIT (1426 HK): Sino Ocean (Further) Maginalises PAG

Negative IFA Opinion Compromises PAG's Offer For Spring REIT

Quiddity Advisors

Event-Driven

<a href="https://www.smartkarma.com/entities/19888" target="_blank" data-smartkarma-citation="entities:19888:1">Spring Real Estate Investment Trust (1426 HK)</a>'s Manager has now decided to treat the seller of the <a href="http://www.hkexnews.hk/listedco/listconews/SEHK/2018/0919/LTN201809191050.pdf" target="_blank">Huizhou properties</a> "as if it were a connected person through the Trustee" and has therefore <a href="http://www.hkexnews.hk/listedco/listconews/SEHK/2018/1018/LTN20181018954.pdf" target="_blank">postponed the EGM</a>, previously scheduled for the 29 October. A revised date for the EGM has not been established.
Although the Manager states it is not a connected party to the seller of the Huizhou property, the connected nature of the trustee to the seller should have been detected earlier and summarily announced to the public.
Given the <a href="http://www.hkexnews.hk/listedco/listconews/SEHK/2017/0830/LTN20170830923.pdf" target="_blank">criticism</a> surrounding the acquisition of the <a href="http://www.hkexnews.hk/listedco/listconews/SEHK/2017/0714/LTN20170714794.pdf" target="_blank">UK repair shops</a> last year and now this last minute notification, PAG Real Estate's concerns over a series of questionable decisions by the Manager are becoming more evident.
In addition, I understand (but have not yet confirmed) that two proxy advisors have recommended unitholders to reject the Huizhou transaction.
These developments should support PAG Real Estate's Offer. The current upside (as I write) to the $4.85 Offer price is 27% against a downside of 22%. That's a decent risk/reward.
Tendering into PAG's Offer is currently estimated at 9.64%, which requires a minimum of 35.2% of units out for the Offer to become unconditional. The first closing date is the 29 October.

Spring Real Estate Investment Trust (1426 HK)'s Manager has now decided to treat the seller of the Huizhou properties "as if it were a connected person through the Trustee" and has therefore postponed the EGM, previously scheduled for the 29 October. A revised date for the EGM has not been established.
Although the Manager states it is not a connected party to the seller of the Huizhou property, the connected nature of the trustee to the seller should have been detected earlier and summarily announced to the public.
Given the criticism surrounding the acquisition of the UK repair shops last year and now this last minute notification, PAG Real Estate's concerns over a series of questionable decisions by the Manager are becoming more evident.
In addition, I understand (but have not yet confirmed) that two proxy advisors have recommended unitholders to reject the Huizhou transaction.
These developments should support PAG Real Estate's Offer. The current upside (as I write) to the $4.85 Offer price is 27% against a downside of 22%. That's a decent risk/reward.
Tendering into PAG's Offer is currently estimated at 9.64%, which requires a minimum of 35.2% of units out for the Offer to become unconditional. The first closing date is the 29 October. 

Spring REIT's EGM Suspension Is A Boost for PAG's Offer