Per Gullberg, CFA, FRM, CAIA

Event-Driven

<p>The drama surrounding Kaisa Group (1638 HK; Kaisa) has taken a new turn, with Sunac China (1918 HK; Sunac) &nbsp;<a href="http://www.hkexnews.hk/listedco/listconews/SEHK/2015/0206/LTN20150206688.pdf" target="_blank">announcing&nbsp;</a>a conditional agreement for acquisition of Kaisa shares currently held by the Kwok Family Trust, which may trigger a mandatory offer at HKD 1.80/share (less stamp duty). This development follows a recent&nbsp;<a href="http://www.hkexnews.hk/listedco/listconews/SEHK/2015/0201/LTN20150201053.pdf" target="_blank">announcement </a>that Kaisa would dispose of equity interests and shareholder's loans in certain project companies to Sunac. &nbsp;We stress that the helping hand is not unconditional, and that Kaisa is not out of the woods yet.&nbsp;</p>

The drama surrounding Kaisa Group (1638 HK; Kaisa) has taken a new turn, with Sunac China (1918 HK; Sunac) &nbsp;announcing&nbsp;a conditional agreement for acquisition of Kaisa shares currently held by the Kwok Family Trust, which may trigger a mandatory offer at HKD 1.80/share (less stamp duty). This development follows a recent&nbsp;announcement that Kaisa would dispose of equity interests and shareholder's loans in certain project companies to Sunac. &nbsp;We stress that the helping hand is not unconditional, and that Kaisa is not out of the woods yet.&nbsp;

Sunac's helping hand is not unconditional

Kaisa Group Holdings

Sunac's helping hand is not unconditional