Skyworth (751 HK): Delisting/Spin-Off Terms Are Fair. Get Involved Here

• Skyworth Group Limited (751 HK) has announced an inter-conditional Scheme and concurrent listing of 70%-held Skyworth Photovoltaic on the HKEx by way of introduction.

• Independent shareholders are offered HK$4.03/share under the Scheme, or new scrip. All shareholders will be in-specied Skyworth Photovoltaic shares with a theoretical value of HK$6.13/share. Or HK$10.16/share all-in.

• Delisting the loss-making old school ops (TVs, set top boxes), and listing the now dominant photovoltaic ops, makes sense. Now it’s just a question of timing.

Conclusions

• The terms are fair.

• You are being in-specied the photovoltaic ops as per the correct ratio.

• You are being paid 0.4x P/B for the old school ops (TV, set top boxes, white goods), in line with the five-year trailing average. These ops are now loss-making (1H25). They are a drag on Skyworth’s overall numbers.

• The trade boils down to what value the market assigns the photovoltaic listing; and the timing of the listing and Scheme.

• This could be wrapped up in 6-8 months, contingent on PRC reg approvals (CSRC and SAFE (if needed)).

• I don’t see an issue on the Scheme vote.