ANE Cayman (9956 HK): Q&A With The FA

• On the 28th October, ANE Cayman Inc (9956 HK), a road freight transportation play, announced a Scheme from Centurium Partners, a pre-IPO investor, Temasek, and Singapore-based asset manager True Light.

• The consortium offered HK$12.18/share, a 48.54% premium to undisturbed. A special dividend was bolted on. All pre-cons, including SAMR’s approval, have been satisfied. Scheme Doc dispatch expected on/before 31st December.

• I had a number of questions concerning the transaction, and yesterday pinned down a one-on-one with the FA to the Offeror.

This insight specifically discusses the Q&A with the FA. The Q&A transcript below is not verbatim.

For a detailed rundown of Centurium/Temasek’s Offer for ANE Cayman Inc (9956 HK), please refer to ANE (9956 HK): Pre-Cons Satisfied. Possible Payment Early March and ANE (9956 HK): Centurium/Temasek’s Clean Offer

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The Trade:

• Pre-IPO investor CDH, holding ~9%, and who has yet to provide an IU, is a non-negligible risk to the deal.

• However, the scrip option helps amelioate the risk. As do the terms, valuation-wise and optically.

• Trading 3.7%/19.2% gross/annualised, if payment before Chinese New Year.