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>On the 18 October, hypermarket operator <a href="https://www.smartkarma.com/entities/sun-art-retail-group-ltd" target="_blank" data-smartkarma-citation="entities:401:1" rel="noopener">Sun Art Retail (6808 HK)</a> <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/1019/2020101900089.pdf" target="_blank" rel="noopener">announced</a> <a href="https://www.smartkarma.com/entities/alibaba-group" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group (9988 HK)</a> had entered into a SPA with the Mulliez family, the completion of which would give Alibaba's direct/indirect control of 71.98% into Sun Art from 31.13% currently, triggering an Unconditional Mandatory General Offer.</p>
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<p>The MGO price would be $8.10/share, a 2.14% premium to last close. Any dividend paid or declared would reduce the Offer Price.</p>
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<p>The SPA had limited conditions and was <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/1019/2020101900982.pdf" target="_blank" rel="noopener">completed</a> on the 19 October. The Composite Doc was expected to be issued by the 9 Nov, 21 days from the initial announcement, but owing to usual slippages, the despatch date was delayed.</p>
<p>The Composite Offer and Response Document is now <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/1127/2020112700011.pdf" target="_blank" rel="noopener">out</a>. The first close is the 18 December, and assuming you tender immediately, payment would be on or around the 8 December. The IFA (Somerley) considers the Offer NOT fair and NOT reasonable.</p>
<p>Sun Art is trading through terms at $8.25/share, although down from its $9.45 close on the day of the Offer announcement. There's nothing to do here on the MGO unless pricing closes in on the near-term hard floor of $8.10, as it did last week.</p>
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<p>More below the fold.</p>
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On the 18 October, hypermarket operator Sun Art Retail (6808 HK) announced Alibaba Group (9988 HK) had entered into a SPA with the Mulliez family, the completion of which would give Alibaba's direct/indirect control of 71.98% into Sun Art from 31.13% currently, triggering an Unconditional Mandatory General Offer.


The MGO price would be $8.10/share, a 2.14% premium to last close. Any dividend paid or declared would reduce the Offer Price.


The SPA had limited conditions and was completed on the 19 October. The Composite Doc was expected to be issued by the 9 Nov, 21 days from the initial announcement, but owing to usual slippages, the despatch date was delayed.
The Composite Offer and Response Document is now out. The first close is the 18 December, and assuming you tender immediately, payment would be on or around the 8 December. The IFA (Somerley) considers the Offer NOT fair and NOT reasonable.
Sun Art is trading through terms at $8.25/share, although down from its $9.45 close on the day of the Offer announcement. There's nothing to do here on the MGO unless pricing closes in on the near-term hard floor of $8.10, as it did last week.


More below the fold.


Sun Art (6808 HK): Offer Doc Out. Not Fair And Reasonable