ANE Cayman (9956 HK): CDH Holds All The Cards

• The feedback I get on this transaction canvasses comments such as: “it just doesn’t feel right“, or “there’s something funny going on“, or simply “weird“.

• With ~20% of the shareholder register, involving opaque pre-IPO investors, none of whom have provided IUs, a Shanghai Henlius (2696 HK)-like situation unfolding is bandied around. The comparison is, however, tenuous.

• Further inquiries suggest CDH is likely in control of 18% of that 20%. This needs to be clarified.

The Trade:

• It’s a binary call on CDH.

• Trading wide at a 5% gross spread.

• Given the ongoing ambiguity as to who owns/controls what, I’m inclined to sit this one out - for now.