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  "docId": "019dd923-622c-750b-8b9c-492b0f1065ae",
  "docSlug": "f3f23ae4a447",
  "documentTitle": "Bank of East Asia, Limited (0023.HK)",
  "authorId": "02_Elliott_Management",
  "authorName": "Elliott",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2016-02-04 00:00:00",
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  "pageNumber": 4,
  "pageCount": 23,
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  "slideType": "closing_ask",
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  "nDataPoints": 8,
  "notes": "The slide frames the current situation as a 'cumulative damage' to shareholders and proposes a specific strategic exit (auction) as the solution.",
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  "components": [
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      "text": "The cumulative damage to shareholders’ interests must now be stopped and the BEA board needs to finally focus on delivering proper value for BEA shareholders, by conducting an auction process to explore the scope for a sale of BEA at an appropriate premium",
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      "text": "In addition, there has been ongoing strong strategic interest, from a broad range of potential buyers, in acquiring Hong Kong banks – meaning that BEA shareholders could achieve an exit at a level of between HK$52.97 to HK$70.33 per share (based on the average price for Hong Kong banking M&A transactions over the past 3 years, of between 1.77x and 2.35x P/B), representing a potential upside of between 153% to 236% to BEA’s current market price",
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      "kind": "list",
      "text": "Regardless of its poor performance and poor corporate governance, the scale and profile of BEA’s banking platform is attractive to any potential acquiror who wants to expand its operations in the Greater China region",
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      "kind": "list",
      "text": "CaixaBank is clearly willing to sell its stake, because it has currently conditionally agreed to sell it to its parent company, Criteria, at just HK$24.25(1) per BEA share - CaixaBank and Criteria could now agree to put that related party transaction aside and instead sell the BEA stake at a significantly better price if a takeover offer was to be made for BEA: a win-win outcome for the shareholders of both BEA and CaixaBank. We estimate that a sale of the BEA stake at HK$60 per share in cash in place of the announced intended share sale could enhance CaixaBank’s CET1 ratio by up to 200 basis points",
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      "kind": "list",
      "text": "BEA has reached the stage where the cumulative damage to shareholders’ interests must be stopped and the BEA board needs to finally focus on delivering proper value for BEA shareholders, by conducting an auction process to explore the scope for a sale of BEA at an appropriate premium",
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      "kind": "list",
      "text": "BEA announced on 19 January 2016 that the long-standing lock-in agreement, which had prevented CaixaBank (one of BEA’s largest shareholders) from accepting any non-recommended takeover offer for BEA without BEA board approval, had been removed",
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      "kind": "metric",
      "text": "share price: HK$52.97 to HK$70.33",
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      "toolName": "Quantification",
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      "kind": "source-note",
      "text": "Note: 1. Based on CaixaBank's announcement of 3 December 2015, adjusted for recent share price movements",
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      "kind": "title",
      "text": "The cumulative damage to shareholders’ interests must now be stopped – the BEA board needs to finally focus on delivering proper value for BEA shareholders",
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      "arcSlug": "problem-agitate-solution",
      "beatName": "Problem",
      "beatSlug": "problem-agitate-solution-problem-identify-pain",
      "evidence": "The document identifies BEA's poor returns and mismanagement as a problem.",
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      "bestFor": "Urgent budget requests, compliance, risk mitigation",
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      "evidence": "The document highlights the cumulative damage to shareholders' interests.",
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