Tian An Medicare (383 HK): Small But Interesting Buyback

• Hospital and nursing home operator Tian An Medicare (383 HK) has announced a small buyback, which could potentially lift Tian An China Investment (28 HK)‘s stake to 55% from 51.47%.

• The buyback is for 70mn shares or 6.48% of shares out, at HK$1.10/share, a 15.79% premium to last close. IF key shareholders do not tender, pro-ration could be >95%.

• The only condition is an ordinary resolution at an SGM, and no shareholder need abstain. Which means the vote is a formality. I’m surprised it even needs to take place.

Tian An Medicare is illiquid. Look away now if this is not your bag.

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The Trade:

• I’d buy Tian An Medicare, either for the back-end (if you have a strong opinion); or for what could potentially be a very high pro-ration.