Z Fin (1168 HK): Ou's "Fair" HK$6.60/Share Offer

• As discussed in Z Fin (1168 HK)’s Suspension: Expect Ou To Make An Offer, following Z Fin (1168 HK)‘s suspension, an Offer from Ou Yaping, Z Fin’s founder, was expected.

• And that is what unfolded late last night (21st July). Ou is Offering HK$6.60/share, by way of a Scheme. Terms are final.

• Terms are a 61.37% premium to undisturbed. Yet a 72.13% discount to NAV. Minorities are somewhat active looking at recent AGM voting. Yet terms are fair to listed peers.

Z Fin (1168 HK) is illiquid. Look away now if this is not your thing.

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Trade:

• This is an awful space to invest.

• 0.28x P/B appears a steal; but it’s above the peer average.

• If illiquid arbs are your thing, pay up to HK$6.25/share, assuming early December completion.