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

StubWorld: Guoco/BEA Into Focus Post Chong Hing Bank Bid

Chong Hing Bank (1111 HK): Scheme Doc Out. IFA Says Fair

Chong Hing Bank (1111 HK): Takeover Talk As Shares Pop

Dah Sing Financial:  Banks Behaving Badly

Quiddity Advisors

Event-Driven

0.9x P/B. That's the only number that matters here.
Yue Xiu (the investment arm of the Guangzhou municipal government) has made an Offer, by way of a Scheme, for <a href="https://www.smartkarma.com/entities/chong-hing-bank-ltd" target="_blank" data-smartkarma-citation="entities:344:1" rel="noopener">Chong Hing Bank (1111 HK)</a> shares not owned, at HK$20.80/share, a 51.2% premium to last close, and a 97% premium to the day preceding the last trading day.
The Cancellation Price, which is a 10.1% discount to the NAV, will NOT be increased.
Standard Scheme conditions apply. Chong Hing is Hong Kong-incorporated, therefore there is no headcount test.
Despite the impressive premium, the P/B multiple is less than half the average P/B multiple for Hong Kong banks over the past twenty years, and less than half the most recent takeover multiple of Wing Hang Bank, which was taken out by <a href="https://www.smartkarma.com/entities/oversea-chinese-banking-corp" target="_blank" data-smartkarma-citation="entities:114:1" rel="noopener">OCBC (OCBC SP)</a> in 2014 at 1.81x P/B in a <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2014/0629/ltn20140629025.pdf" target="_blank" rel="noopener">US$4.9bn deal</a>.
More below the fold.

0.9x P/B. That's the only number that matters here.
Yue Xiu (the investment arm of the Guangzhou municipal government) has made an Offer, by way of a Scheme, for Chong Hing Bank (1111 HK) shares not owned, at HK$20.80/share, a 51.2% premium to last close, and a 97% premium to the day preceding the last trading day.
The Cancellation Price, which is a 10.1% discount to the NAV, will NOT be increased.
Standard Scheme conditions apply. Chong Hing is Hong Kong-incorporated, therefore there is no headcount test.
Despite the impressive premium, the P/B multiple is less than half the average P/B multiple for Hong Kong banks over the past twenty years, and less than half the most recent takeover multiple of Wing Hang Bank, which was taken out by OCBC (OCBC SP) in 2014 at 1.81x P/B in a US$4.9bn deal.
More below the fold.

Chong Hing Bank (1111 HK): Yue Xiu's Offer Is Light