After a global lab-service outsourcer Frontage Holdings (1521 HK) was suspended last month, an Offer from its parent Hangzhou Tigermed Consulting (3347 HK)/(300347 CH) was expected.
That unfolded last night (9th November), with Tigermed and Charles River Laboratories pitching a pre-conditional (Tigermed shareholder approval, HSR Act) Scheme at HK$2.37/share, a punchy 107.9% premium to undisturbed. Terms are final.
The pre-con long stop date is the 30th April 2027. This could/should be wrapped up in the 1H27.
Frontage Holdings (1521 HK) is illiquid. Look away now if this is not your thing.
The Trade:
This is a clean deal.
The voting risk is low.
If super-illiquid arbs are your bag, pay up to HK$2.15/share, at most, for a 15% annualised return, assuming mid-2027 completion.