Joy City (207 HK): 17th November Vote On COFCO's Offer

• On the 31sr July, Chinese property play Joy City (207 HK) announced a Scheme buyback, @ $0.62/share (declared final), a 67.57% premium; but arguably a 158% premium to undisturbed.

• Yes, this was a ~70% discount to NAV. However, Joy City had traded at P/B of 0.14x, on average, the past five years. Earnings have trended south in that timeframe.

• The Scheme Document’s now out, with a Court Meeting on the 17th November and expected payment around the 4th December. The IFA (Somerley) says “fair & reasonable”. It probably is.

At the bottom of this insight, I’ve provided a rundown of upcoming events for those Asia-Pac companies currently subject to an Offer or similar.

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The Trade:

• Trading super wide at a 3.8%/111.4% gross/annualised spread. To be expected.

• If small-cap illiquid arbs are your bent, get involved here.

• Otherwise, this is an avoid. Your downside is massive if this were to blow up.