Meilan Airport (357 HK)'s SPA (Finally) Done. Now For The HK$10.62/Share MGO

• Given the change of control into Meilan Airport (357 HK), was, in effect, a re-arrangement of Meilan Airport shares under the same ultimate parent, the regulatory approval process curiously dragged.

• Yesterday Meilan Airport announced all SPA conditions have now been satisfied, and that the SPA should complete in 20 business days. A Composite Doc will then be issued.

• Trading almost at terms. This is a back-end proposition play. My peer basket is up 11%, on average, since the Offer was first announced. Asian peers are up 15%.

The Trade:

• The MGO is unconditional.

• I have no strong conviction on the back-end.

• The Offer Price was only a 10.6% premium to undisturbed.

• I expect this to trade through terms, given the change of control, and the performance of peers since the Offer was announced.

This insight is labelled bullish as I’m not bearish here.