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>Back on the 30 November, UK-based <a href="https://www.smartkarma.com/entities/wpp-plc" target="_blank" data-smartkarma-citation="entities:22213:1" rel="noopener">WPP PLC (WPP LN)</a>, the world's largest advertising company, tabled a <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02315430-2A1266721?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">proposal</a> to delist 61.5%-held subsidiary <a href="https://www.smartkarma.com/entities/wpp-aunz-ltd" target="_blank" data-smartkarma-citation="entities:15931:1" rel="noopener">WPP AUNZ (WPP AU)</a> at A$0.55/share, in cash, a 34.1% premium to last close, and a 69.3% premium to the six-month VWAP. </p>
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<p>This was an unsolicited Offer and no binding implementation agreement (BIA) had been entered into.</p>
<p>In <em><a href="https://skr.ma/JSrkm" target="_blank" rel="noopener">WPP AUNZ: Mad Men At Work</a></em>, I argued there was an air of opportunism to the Offer, and recommended buying at or below terms - on the expectation of a bump, as management argues the upside from its wide-ranging cost cuts.</p>
<h3><strong>The New News</strong></h3>
<p>WPP PLC has returned with a <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02323439-2A1270746?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">A$0.70/share offer</a>, by way of  Scheme, valuing WPP AUNZ at an implied enterprise value of A$717mn. It is the intention of WPP AUNZ to enter into a BIA.</p>
<p>With that 27.3% bump, this looks done.</p>
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<p>More below the fold.</p>
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<p></p>
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Back on the 30 November, UK-based WPP PLC (WPP LN), the world's largest advertising company, tabled a proposal to delist 61.5%-held subsidiary WPP AUNZ (WPP AU) at A$0.55/share, in cash, a 34.1% premium to last close, and a 69.3% premium to the six-month VWAP. 


This was an unsolicited Offer and no binding implementation agreement (BIA) had been entered into.
In WPP AUNZ: Mad Men At Work, I argued there was an air of opportunism to the Offer, and recommended buying at or below terms - on the expectation of a bump, as management argues the upside from its wide-ranging cost cuts.
The New News
WPP PLC has returned with a A$0.70/share offer, by way of  Scheme, valuing WPP AUNZ at an implied enterprise value of A$717mn. It is the intention of WPP AUNZ to enter into a BIA.
With that 27.3% bump, this looks done.

More below the fold.




WPP AUNZ

WPP AUNZ: More Mad Men At Work