Goodbaby International (1086 HK), a maker of juvenile products (strollers/pushchairs, child car seats), has announced an Offer, by way of a Scheme, from founder/chairman Song Zhenghuan.
Song is Offering HK$1.50/share, a 38.9% premium to last close. And a 53.06% premium to the 10-day VWAP (possible news leakage?).
The Offer price is final. Dividends will be netted. This transaction should be wrapped up in around four months, ahead of the 24th March 2027 long-stop.
Goodbaby International (1086 HK) is illiquid. Look away now if this is not your bag.
The Trade:
This is likely done.
If illiquid arb are your bent, I’d buy up to HK$1.40/share, for a 6%/15% gross/annualised return, assuming a four-month off-ramp.
At $1.30/share as I type, this is attractive