Canvest (1381 HK): This Is Trading Too Wide

Nov 01, 2024

∙ Paid

Back on the 22 July, waste-to-energy play Canvest Environmental (1381 HK) announced a pre-conditional Offer from Grandblue Environment (600323 CH) at $4.90/share (best & final), by way of a Scheme.
PRC anti-monopoly law and SAMR approvals were secured ~2.5 months from the Offer announcement. MoC, NDRC, SAMR and SAFE approvals remain outstanding. The pre-con long-stop is the 17th July 2025.
The transaction appears on track. However, Canvest's gross spread has widened 6.4% - out to 13.4% as I type - since China Traditional Chinese Medicine (570 HK) blew up. That's excessive.

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