Fengxiang (9977 HK): Pre-Cons Done. Possible Payment Mid-September

• On the 11th April 2025, Shandong Fengxiang (9977 HK) announced a $2.00/share Offer, by way of a pre-conditional Merger by Absorption, from PAG.

• Those pre-conditions (NDRC, Ministry of Commerce, and SAFE) have now been satisfied. The Composite Doc is expected to be dispatched no later than 11 July.

• This Offer is a Merger by Absorption incorporating a Scheme-like vote. There is no tendering condition. This is done. I estimate payment the second week of September.

Fengxiang is super illiquid - look away now if this is not your thing.

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The Trade:

• This still looks done. Pricing appears fair.

• However this is an illiquid arb - and Hong Kong has seen two failed small-cap Schemes recently.

• Plus PAG is inviting dissent after scraping the share alternative, which did have support.

• If illiquid arbs are your bent, and assuming completion mid-September, I'd pay up to HK$1.95/share.