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

Zhuhai Holdings (908 HK): Zhuhai SASAC Reloads With Scheme Offer

Zhuhai Holdings (908 HK): SGM On The 18 May

Quiddity Advisors

Event-Driven

Zhuhai Holdings Investment / Event-Driven

On the 21 January, <a href="https://www.smartkarma.com/entities/zhuhai-holdings-investment-group-ltd" target="_blank" data-smartkarma-citation="entities:17863:1" rel="noopener">Zhuhai Holdings Investment (908 HK)</a> (ZHI) <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0122/2020012200085.pdf" target="_blank" rel="noopener">announced</a> a wholly-owned subsidiary of SOE ZJ Holdings (the Offeror), and a 25.73% shareholder of ZHI, had entered into a SPA with <a href="https://www.smartkarma.com/entities/lbs-bina-group-bhd" target="_blank" data-smartkarma-citation="entities:12060:1" rel="noopener">Lbs Bina Group (LBS MK)</a>, to acquire LBS' 5.53% stake in ZHI. The sale price was $1.21/share, a 0.83% premium to last close.
Upon the completion of the SPA, the Concert Group (including ZJ Holdings' direct stake of 16.47%) would own 47.95%, up from 42.42%. This will trigger a mandatory conditional cash offer by the Convert Group under Rule 26.1 of the Takeovers Code.
ZHI operations include port facilities and ferry services in China; the operation of Jiuzhou Blue Sea Jet and Blue Marine Tourism (a ferry service); and the management of holiday resort hotel and theme/amusement park.
The SPA was <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0122/2020012200940.pdf" target="_blank" rel="noopener">completed</a> on the 22 January. The dispatch of the Composite Document has been pushed back to the <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0210/2020021000293.pdf" target="_blank" rel="noopener">20 April</a>. The MGO, also at HK$1.21/share, is conditional on the Concert Group holding 50% of shares out at the close of the Offer.
What was probably just an opportunity to take out a large shareholder, may ultimately result in ZJ Holdings taking majority control in the company, as ZHI, which is largely a tourist play, faces an uncertain earnings outlook. A <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0227/2020022700871.pdf" target="_blank" rel="noopener">profit warning</a> on the 27 Feb provides early guidance on ZHI's financials.

On the 21 January, Zhuhai Holdings Investment (908 HK) (ZHI) announced a wholly-owned subsidiary of SOE ZJ Holdings (the Offeror), and a 25.73% shareholder of ZHI, had entered into a SPA with Lbs Bina Group (LBS MK), to acquire LBS' 5.53% stake in ZHI. The sale price was $1.21/share, a 0.83% premium to last close.
Upon the completion of the SPA, the Concert Group (including ZJ Holdings' direct stake of 16.47%) would own 47.95%, up from 42.42%. This will trigger a mandatory conditional cash offer by the Convert Group under Rule 26.1 of the Takeovers Code.
ZHI operations include port facilities and ferry services in China; the operation of Jiuzhou Blue Sea Jet and Blue Marine Tourism (a ferry service); and the management of holiday resort hotel and theme/amusement park.
The SPA was completed on the 22 January. The dispatch of the Composite Document has been pushed back to the 20 April. The MGO, also at HK$1.21/share, is conditional on the Concert Group holding 50% of shares out at the close of the Offer.
What was probably just an opportunity to take out a large shareholder, may ultimately result in ZJ Holdings taking majority control in the company, as ZHI, which is largely a tourist play, faces an uncertain earnings outlook. A profit warning on the 27 Feb provides early guidance on ZHI's financials.

Zhuhai Holdings: SOE Offer For Tourist Play