Tender offer from Ping An oversubscribed

Shanghai Jahwa (Jahwa), whose trading was suspended on 1 Dec after itssubscription for the tender offer from its parent company Shanghai Jahwa Groupwas closed on 30 Nov, announced the results of the tender offer and resumedtrading on 4 Dec.

From 1 Nov to 30 Nov, 261m shares subscribed to the tender offer, accounting for39% of the total shares, surpassing the acquirer’s original plan (135m shares,i.e. 20% of total shares). Thus, for each shareholder, the no. of actual acquiredshares is 51.6% (135 shares /261 shares) for the subscribed shares. All the soldshares have been transferred and the payment was settled by 4 Dec.

The company also announced that Mr Huang Jian, vice president of Jahwa, sold23,226 shares to the Jahwa parent company, accounting for 0.0034% of totalJahwa's shares. After this transaction, he owns 0.026% of Jahwa.

Deutsche Bank View

As we mentioned in our report titled Shanghai Jahwa - Jahwa parent co. to buy20% stake of Jahwa listco at RMB38 per share published on 13 Oct 2017, webelieve the offer price (RMB38/share) is more attractive with a larger premiumvs the average price of the previous three/six months and the last tender offerin 2015. For now, Shanghai Jahwa Group has increased its share of the Jahwalistco from 27.09% to 47.09%. Ping An has also increased its shareholding from32.02% to 52.02% and has become a controlling shareholder of the company. Aswe mentioned earlier, we believe its share price will normalize after the exercise.We maintain our Hold recommendation on Jahwa.

更多精彩大盘资讯敬请期待！