Evergrande Property Services (6666 HK): Liquidators' Auction
In Evergrande Property Services (6666 HK): Offer Expected As Parent (Likely) Exits., I speculated on the outcome of Evergrande Property Services (6666 HK) (EPS)'s suspension due to the Takeovers Code.
EPS has now announced that the liquidators for Evergrande (3333 HK) have been fielding non-binding Offers for Evergrande's 51.016% stake in EPS. Final proposals are expected to be submitted by November.
With a view to maximizing proceeds, the liquidators will ideally seek a sole bidder, leading to a change of control. And an unconditional MGO. Shares resume trading this morning.
The Trade:
EPS may get a lift on resumption this morning.
I wouldn't chase it. Metrics are fair with respect to peers.
There is no shortage of choices in this space.
EPS is up 108% since Evergrande entered liquidation.
This insight is labelled bullish as I'm not bearish here.
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