Equity Analyst, LightStream Research

Oshadhi Kumarasiri

An equity research analyst with over 7 years of experience in multiple sectors. Previously worked for one of the world's largest asset managers with about USD2.5trn in AUM, covering small and micro-cap companies in the consumer sphere across Europe and developed Asia. Also experienced in covering multiple industries including banking, insurance and asset management, retail, tech, telco and REIT.

Equity Analyst

A Low-Ball Offer - Aimed to Keep Sun Art Retail Listed

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Event-Driven

<ul>
<li>Yesterday (19<sup>th</sup> October 2020), Chinese 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> announced that <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:787:1" rel="noopener">Alibaba Group (BABA US)</a>-owned Taobao China Holding Limited unconditionally agreed to acquire an additional 70.94% interest in A-RT Retail Holdings Limited from its owners, Mulliez Family, for an aggregate consideration of US$ 3.6 billion (HK$ 27.96 billion).</li>
<li>Immediately after the completion of the agreement, Taobao will own 90.84% of A-RT (including the 19.9% ownership prior to the agreement).  </li>
<li>A-RT owns 51% of Sun Art Retail shares, giving Taobao an indirect ownership of 46.33% of Sun Art Retail shares. Taobao directly holds 20.98% shares of Sun Art Retail and another 5.04% through the 100%-owned New Retail Fund.</li>
<li>Immediately after the completion of the agreement, Alibaba/Taobao will own 72.35% of Sun Art Retail’s share capital.</li>
<li>Earlier today, it was announced that the acquisition was completed yesterday (19<sup>th</sup> October 2020) and triggered a mandatory offer at HK$ 8.10 per share.</li>
</ul>


Yesterday (19th October 2020), Chinese hypermarket operator Sun Art Retail (6808 HK) announced that Alibaba Group (BABA US)-owned Taobao China Holding Limited unconditionally agreed to acquire an additional 70.94% interest in A-RT Retail Holdings Limited from its owners, Mulliez Family, for an aggregate consideration of US$ 3.6 billion (HK$ 27.96 billion).
Immediately after the completion of the agreement, Taobao will own 90.84% of A-RT (including the 19.9% ownership prior to the agreement).  
A-RT owns 51% of Sun Art Retail shares, giving Taobao an indirect ownership of 46.33% of Sun Art Retail shares. Taobao directly holds 20.98% shares of Sun Art Retail and another 5.04% through the 100%-owned New Retail Fund.
Immediately after the completion of the agreement, Alibaba/Taobao will own 72.35% of Sun Art Retail’s share capital.
Earlier today, it was announced that the acquisition was completed yesterday (19th October 2020) and triggered a mandatory offer at HK$ 8.10 per share.


Sun Art Retail: A Quick Run Through Fundamentals as Alibaba Takes the Helm