Get Nice (64 HK): Hung's (Expected) Low-Balled Offer. It Is What It Is

• As discussed in Get Nice (64 HK): Expect A Founder’s Scheme, following Get Nice (64 HK)‘s (GNH) suspension, an Offer from Hung Hon Man, GNH’s chairman (& founder), was expected.

• And that is what unfolded late Friday night (17th July). Hung is Offering HK$4/share, comprising a HK$2 consideration + HK$2 special dividend. Terms appear not to be final.

• Terms are also low-balled. A 17.6% premium to undisturbed. And a 62.8% discount to NAV. Yet minorities are indifferent looking at AGM voting. I’m guessing this gets up, as is.

Get Nice (64 HK) (GNH) is illiquid. Look away now if this is not your bag.

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Trade:

• It would be refreshing to see some disruptor(s) build a blocking stake and force a (significant) bump.

• That’s probably wishful thinking, as Hung takes advantage of GNH’s lack of liquidity, and multi-year-high Offer price. And hands-off minorities.

• I wouldn’t pay any more than $3.80/share at the bell.