Dongfeng Motor (489 HK) has announced a privatisation; together with a concurrent listing of its EV arm.
The same day as the dual proposals, Dongfeng announced an interim loss (1H25). Evidently, the way forward - from an investor standpoint - is electric, not internal combustion engines.
The cash terms + scrip (into the EV listing) under the proposals are attractive. Even after this morning's move (+53.6%) in Dongfeng's share price.
The Trade:
If, say, eight months to square away all approvals, delist Dongfeng AND list VOYAH, this is trading at a gross/annualised spread of 19.6%/31.8%; or 11.9%/18.9% based on my value for VOYAH.
That's attractive, even after this morning's share price move.