Kangji Medical (9997 HK): Speedy Turnaround On Pre-Cons

• Kangji Medical Instrument (9997 HK) announced last night all pre-cons have been squared away. That must be some kind of record to secure SAMR approval for a Hong Kong-listed privatisation.

• Back on the 12th August, Kangji Medical announced a less-than-ideal Offer, by way of a Scheme, from a consortium led by TPG and Qatar Investment Authority, together with the founders.

• What next? The Scheme Doc dispatch remains the 31st October, unless announced otherwise, as the Cayman Court is still on its six week "vacation".

The Trade:

• I still expect this Offer to get up.

• Trading wide at 5.5%/20.3% gross/annualised, assuming payment shortly before Xmas.

• Given terms are not, by any stretch, a knockout, I would not aggressively chase it.

This insight is labelled bullish as I think this Offer gets up.

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The NEW News

• Kangji announced on the 3rd September it has received the requisite approval from the Anti-trust Bureau of SAMR in relation to the Offer; and that all pre-cons have been satisfied.

• On the 2nd September, Kangji said the Scheme Doc dispatch had been delayed to the 31st October.

• Often when pre-cons are satisfied, an Offer/Scheme Doc is dispatched within seven days; however Kangji is not bound by this schedule on account of the prior delay announcement.

• Furthermore:

the Company has yet to obtain directions on the convening of the Court Meeting as the Grand Court’s vacation runs from 1 August 2025 to 15 September 2025.

• That's it.