Antelope Enterprise Holdings Limited · NASDAQ:AEHL
Antelope Enterprise — China Ceramics — Merger or Acquisition (October 2011)
42 slides from Antelope Enterprise's merger presentation, Oct 7, 2011
Slide 1: Project Ceramics
Project Ceramics CONFIDENTIAL July 2011
Slide 2: Disclaimer
DISCLAIMER: This presentation was prepared exclusively for the benefit and internal use of the recipient to whom it is directly addressed and delivered (including such recipient's affiliates, directors, employees and advisers, collectively “Recipient") in order to assist the Recipient in evaluating,
Slide 3: Project Ceramics Overview
Project Ceramics Overview > China Ceramics (the “Company” as a publicly traded company on the NASDAQ is severely limited in its ability to create value for shareholders and raise capital at a reasonable cost to fund its growth Growth story of China Ceramics is not currently understood or appropriate
Slide 4: Project Ceramics Overview
Project Ceramics Overview v The solution that we are proposing is not just an idea, it is real and actionable now ~ We sought advice and have had discussions with a small group of very reputable firms both in NY and HK ~ The Dunning Group used it considerable influence and reputation to raise the si
Slide 5: The Project Ceramics team consists of Jim Dunning, Byron Sproule and Gordon Chin
» The Project Ceramics team consists of Jim Dunning, Byron Sproule and Gordon Chin and a Financial Sponsor Project Ceramics needs to be kept highly confidential at this time = Jim Dunning has previously taken one of his companies private and strongly believes this is the right answer for China Ceram
Slide 6: Project Ceramics Overview
Project Ceramics Overview > Jim Dunning, Alan Hassenfeld and Greg Smith have so much confidence in Project Ceramics that they will be rolling their equity with Mr. Huang in the take private = Represents 1.1mm shares — We will ask Paul Kelly and Cheng Davis to roll their shares > There are a number o
Slide 7: Why does Project Ceramics make sense for Mr. Huang and China Ceramics (cont.)
> Why does Project Ceramics makes sense for Mr. Huang and China Ceramics (cont.) = Upfront expenses of legal, financial and commercial due diligence will initially be paid by The Dunning Group and the Financial Sponsor - Low risk of execution since it is primarily the timing of the IPO in HK ~ The P
Slide 8: Current Shareholder Structure
Current Shareholder Structure > Mr. Huang currently owns 39.3% of the Company and the Founders of China Holdings own 10.6% Current Shareholders Mr. Huang Closing of China Holdings 4,163,227 Current 2009 Net Income Earn-out 1,214,127 % 2010 Net Income Earn-out 1,794,800 __Shares___ Outstanding —_Note
Slide 9: Financial Analysis - Take Private
Financial Analysis - Take Private > We have used the following assumptions for the take-private analysis - Financial Sponsor will want to diligence China Ceramics’ business plan for 2011 to 2013 - The Special Committee will also require a 3 to 5 yr business plan to evaluate the offer Take Private To
Slide 10: Financial Analysis - Take Private
Financial Analysis - Take Private > The take-private could require funding in excess of $80mm to acquire the outstanding shares Take Private Price/Share__ $7.00 $8.00 Premium to Current 55.656 77.8% Equity Value of Total Shares Outstanding $127,78014 ——_$146,032,016, Net Cost to Purchase Warrants 0
Slide 11: Ownership Post-Take Private and Post IPO
‘Ownership ‘Ownership Post-Take Private Post IPO (10x P/E) |r, Huang existing 7,472,154 32.0% 2011 Net income Earn-out 2,176,836 9.7% Share Price Eam-out 2,000,000___ Shares 8.9% [Total Mr. Huang 11,348,990 50.6% Shares Acquired 9,144,350 40.8% [china Holdings Founders - Rolling 1,937,498 _ 8.6% Tot
Slide 12: Financial Analysis - IPO
Financial Analysis - IPO Project Ceramics should create value of $160mm to $380mm to Mr. Huang > Mr. Huang’s ownership would be +40% after the IPO, within his current ownership range ~ Will be much easier for the Company to raise capital in the future at reasonable valuations > Assumes $40mm of the
Slide 13: Project Ceramics Timeline
Project Ceramics Timeline We would expect the take private to be completed by the end of 2011 > The Board of Directors will have to set up a Special Committee and hire their own legal and financial advisor = The Special Committee will consist of the independent and disinterested board members: Bill
Slide 14: Summary Terms
Summary Terms > The Consortium will use a Special Purpose Vehicle (“SPV”) to purchase the ~9 million shares owned by the pubic = Mr. Huang and other the other rolling shareholders would contribute their shares in exchange for ordinary shares of the SPV ~The Financial Sponsor will contribute cash to
Slide 15: Summary Terms (continued)
Summary Terms (continued) > If the take private Is successful, then the Financial Sponsor and The Dunning Group will earn fees = The Financial Sponsor will earn a success fee of $3 million ~ The Dunning Group will earn a success fee of $500,000 > All fees, costs and expenses incurred by Consortium w
Slide 16: Summary Terms (continued)
Summary Terms (continued) > The Financial Sponsor will have the right to sell the Preferred Shares at any time > If secondary shares are sold in the IPO, both the Financial Sponsor and The Dunning Group will have a priority right to sell their shares > In the event there is a breakup fee payable to
Slide 17: Case Study - Sihuan Pharmaceutical Holdings
The Company has the largest cardio-cerebral vascular drug franchise in China by market share In December 2009, led by a consortium comprising Morgan Stanley and Sihuan’s founders, Sihuan Pharmaceutical Holdings Group Ltd. delisted from the SGX at a P/E of 8.1x. ‘SGX Delisting (December 2009) Offer P
Slide 18: Case Study - Sihuan Pharmaceutical Holdings (cont.)
Case Study - Sihuan Pharmaceutical Holdings (cont.) The Delisting = Morgan Stanley and Sihuan’s founders formed an SPV to tender for all the shares of the listed company © Morgan Stanley contributed US$48.67 million cash © The founders contributed 76.62% of the outstanding shares of Sihuan and US$15
Slide 19: Case Study - Man Wah Holdings
Case Study - Man Wah Holdings Man Wah Holdings is a manufacturer of sofas, mattresses, panel furniture In September 2009 Man Wah Holdings Limited was delisted from the SGX by its founders and major shareholders at a P/E of 3,96x. The financing for the transaction was a combination of bank debt and f
Slide 20: Case Study - Man Wah Holdings (cont.)
Case Study - Man Wah Holdings (cont.) The Delisting = Man Wah’s founders and major shareholders formed an SPV with the intention of acquiring 100% of the shares of the listed company o The consortium contributed 81.52% of the shares of the listed company and the founders contributed cash and secured
Slide 21: Team Overview
Team Overview Gordon Chin Gordon Chin is based in Shanghal. Prior to joining The Dunning Group as a Managing Director, he was a Managing Director at ARC China. ‘At ARC China he was responsible for all facets of ARC China's business, Including deal origination and execution, portfolio management and
Slide 22: Project Ceramics (Chinese cover)
Slide 23: Se Fe:
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Slide 24: Vig BER AIS
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Slide 25: Meg EO ABS
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Slide 27: Ma (BR)
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Slide 29: China Holdings EID 4,263,227 ai
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China Ceramics — Merger or Acquisition (October 2011) on 6ix