Con Aero Tech (232 HK) Should (Almost) Double At The Bell

• After SOE-backed small plane engine maker Continental Aerospace Technologies (232 HK)‘s share price popped on the 26th May, it confirmed a possible sale that could have Takeovers Code implications.

• Late Friday (5th June) CAT confirmed it has entered into an SPA to sell its core business, potentially leading to a large cash distribution (HK$0.419-HK$0.436/share), and subsequent winding up.

• The SPA requires reg approvals and a Scheme-like vote. 46.4% of the register is supportive. Additional dividends expected from the sale of property. Get involved.

CAT is relatively illiquid - look away now if this is not your thing.

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The Trade:

• This entire construct appears clean.

• The share price will pop bigly at the bell.

• Just a question of timing on the payout.

• I’d buy up to ~HK$0.40/share, assuming the low-end dividend payment in November.