Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Pan-Asia Index Flows & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

Nuvoton Technology Corp. manudfactures a wide range of semiconductor products. The Company's products lines are Consumer Electronics integrated Circuits (IC) and Computer IC.

<ul>
<li>The T50 index represents the top 50 largest stocks by market capitalization in the Taiwan Stock Exchange (TWSE). The T100 index represents the next 100 largest names (51-150 ranks).</li>
<li>These indices are rebalanced quarterly. In this insight, we take a look at the names leading the race to become ADDs/DELs for the September 2024 index rebal event.</li>
<li>T50/100 index changes can also trigger TDIV index changes. <a href="https://www.smartkarma.com/entities/nuvoton-technology-corp" target="_blank" data-smartkarma-citation="entities:15913:1" rel="noopener">Nuvoton Technology (4919 TT)</a> could be involved in such a move in September 2024.</li>
</ul>


The T50 index represents the top 50 largest stocks by market capitalization in the Taiwan Stock Exchange (TWSE). The T100 index represents the next 100 largest names (51-150 ranks).
These indices are rebalanced quarterly. In this insight, we take a look at the names leading the race to become ADDs/DELs for the September 2024 index rebal event.
T50/100 index changes can also trigger TDIV index changes. Nuvoton Technology (4919 TT) could be involved in such a move in September 2024.


Quiddity Leaderboard T50/​​​100 Sep 24: Nuvoton Tech TDIV Deletion Is the Talking Point

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

The Warehouse Group Limited operates general merchandise and stationery supply retail stores throughout New Zealand.

<ul>
<li>General merchandise retailer <a href="https://www.smartkarma.com/entities/warehouse-group-limited-the" target="_blank" data-smartkarma-citation="entities:1721:1" rel="noopener">Warehouse Group Limited (WHS NZ)</a> (TWG) has <a href="https://www.nzx.com/announcements/434820" target="_blank" rel="noopener">announced</a> it has received an approach from Stephen Tindall and PE outfit, Adamantem Capital Partners</li>
<li>Founder and major shareholder Tindall holds a shade over 50%. He launched a $1.6bn privatisation attempt in 2006, but Foodstuffs and <a href="https://www.smartkarma.com/entities/woolworths-ltd" target="_blank" data-smartkarma-citation="entities:500:1" rel="noopener">Woolworths Ltd (WOW AU)</a> effectively blocked the Offer.</li>
<li>The approach arrives after TWG's shares trade around multi-year lows. </li>
</ul>


General merchandise retailer Warehouse Group Limited (WHS NZ) (TWG) has announced it has received an approach from Stephen Tindall and PE outfit, Adamantem Capital Partners
Founder and major shareholder Tindall holds a shade over 50%. He launched a $1.6bn privatisation attempt in 2006, but Foodstuffs and Woolworths Ltd (WOW AU) effectively blocked the Offer.
The approach arrives after TWG's shares trade around multi-year lows. 


The Warehouse Group (WHS NZ): Tindall (Potentially) Reloads

Pacific Smiles Group Limited owns and operates dental centers. The Company's centers provide preventative care, diagnosis and treatment for patients with a broad range of dental care requirements.

<ul>
<li>After what appeared indecisiveness from Genesis Capital, Crescent Capital's National Dental Care snuck in on the 29th April and entered into a Scheme with <a href="https://www.smartkarma.com/entities/pacific-smiles-group-ltd" target="_blank" data-smartkarma-citation="entities:2891:1" rel="noopener">Pacific Smiles (PSQ AU)</a> at A$1.90/share. </li>
<li>The Scheme Meeting is the 1st August with expected implementation on the 19th August. The IE (Deloitte) reckoned terms are fair &amp; reasonable. All good right? Not quite.</li>
<li>The Takeovers Panel has concluded Genesis Capital, with 19.9% of shares out, is free to vote. Assuming Genesis votes against the Scheme, Crescent Capital's Offer is effectively dead.</li>
</ul>


After what appeared indecisiveness from Genesis Capital, Crescent Capital's National Dental Care snuck in on the 29th April and entered into a Scheme with Pacific Smiles (PSQ AU) at A$1.90/share. 
The Scheme Meeting is the 1st August with expected implementation on the 19th August. The IE (Deloitte) reckoned terms are fair &amp; reasonable. All good right? Not quite.
The Takeovers Panel has concluded Genesis Capital, with 19.9% of shares out, is free to vote. Assuming Genesis votes against the Scheme, Crescent Capital's Offer is effectively dead.


Pacific Smiles' (PSQ AU) Scheme Vote: Say “aaaarrrghhhh”?!

Travis Lundy

Tatsuta Electric Wire & Cable / Event-Driven

TATSUTA ELECTRIC WIRE AND CABLE CO., LTD. manufactures wires and cables. The Company's products include power cables, optic fiber cables and its related devices, bonding wires, and water leakage detection systems.  Tatsuta Wire & Cable also produces environmentally friendly cables.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/eneos-holdings-inc" target="_blank" data-smartkarma-citation="entities:638:1" rel="noopener">ENEOS Holdings (5020 JP)</a> announced its deal for affiliate <a href="https://www.smartkarma.com/entities/tatsuta-electric-wire-cable-co-ltd" target="_blank" data-smartkarma-citation="entities:12509:1" rel="noopener">Tatsuta Electric Wire &amp; Cable (5809 JP)</a> 18-plus months ago. China approvals held it up more than a year.</li>
<li>Last month, they launched. The sector was up a lot. TOPIX was up a lot. The stock had recently been trading through terms. But ENEOS didn't bump the price.</li>
<li>A month later, and the tender was supposed to have closed Friday 19 July. It didn't. ENEOS extended, for no reason, which suggests they don't have the shares. </li>
</ul>



ENEOS Holdings (5020 JP) announced its deal for affiliate Tatsuta Electric Wire &amp; Cable (5809 JP) 18-plus months ago. China approvals held it up more than a year.
Last month, they launched. The sector was up a lot. TOPIX was up a lot. The stock had recently been trading through terms. But ENEOS didn't bump the price.
A month later, and the tender was supposed to have closed Friday 19 July. It didn't. ENEOS extended, for no reason, which suggests they don't have the shares. 


ENEOS Extends Tatsuta Electric (5809) Tender Offer Means They Don't Have The Shares

Semiconductor Manufacturing International Corp (SMIC) / Event-Driven

Semiconductor Manufacturing International Corporation operates a semiconductor foundry. The Company provides integrated circuit foundry and technology services including the testing, development, design, manufacturing, packaging, and sale of integrated circuits. Semiconductor Manufacturing International offers its products and services around the world.

Semiconductor Manufacturing International Corp (SMIC) (981 HK)

Semiconductor Manufacturing International Corp (SMIC)

<ul>
<li>The New/Better A-H Premium Tracker has tables, charts, measures galore to track A/H premium positioning, southbound and northbound positioning/volatility in pairs over time, etc.</li>
<li>SOUTHBOUND inflow strong but SOEs not leading and Hang Seng down hard. Bank buying minimal. NORTHBOUND saw significant selling, but A-share indices generally strong on the week. Window-dressing?</li>
<li>AH Premia rose 3.3% on average. Really bad week for H vs A as Liquid Hs underperformed their As by 4%. Stunning week really. Relative performance a sea of red.</li>
</ul>


The New/Better A-H Premium Tracker has tables, charts, measures galore to track A/H premium positioning, southbound and northbound positioning/volatility in pairs over time, etc.
SOUTHBOUND inflow strong but SOEs not leading and Hang Seng down hard. Bank buying minimal. NORTHBOUND saw significant selling, but A-share indices generally strong on the week. Window-dressing?
AH Premia rose 3.3% on average. Really bad week for H vs A as Liquid Hs underperformed their As by 4%. Stunning week really. Relative performance a sea of red.


A/H Premium Tracker (To 19 Jul 2024): SB Bought, NB Sold, HK Crushed Vs A-Shares

Quiddity Advisors
Pan-Asia Catalysts/Events

Quiddity Leaderboard T50/100 Sep 24: Nuvoton Tech TDIV Deletion Is the Talking Point

We do not see any changes for the T50 index at present. However, we see three changes for the T100 index and one of the DELs - Nuvoton Tech - could...

Janaghan Jeyakumar, CFA

The Warehouse Group (WHS NZ): Tindall (Potentially) Reloads

Although there is no firm Offer on the table; given where shares are trading, and interest is apparent from the major shareholder, I'd look to get...

David Blennerhassett

Pacific Smiles' (PSQ AU) Scheme Vote: Say “aaaarrrghhhh”?!

HBF, with 10.03%, said it will vote in favour of the Scheme. Yet this transaction is effectively toast after Genesis announced the previous week it...

David Blennerhassett

ENEOS Extends Tatsuta Electric (5809) Tender Offer Means They Don't Have The Shares

ENEOS extends the Tatsuta Electric TOB. No technicality, suggesting they do not have the shares. But they say they aren't raising price. Maybe they...

Travis Lundy

A/H Premium Tracker (To 19 Jul 2024): SB Bought, NB Sold, HK Crushed Vs A-Shares

As HK stocks got crushed during the week and A-shares did well, and SOUTHBOUND did not seem to buy the banks or SOEs, AH Premia jumped. The carry...

Travis Lundy

Quiddity Leaderboard T50/​​​100 Sep 24: Nuvoton Tech TDIV Deletion Is the Talking Point

We do not see any changes for the T50 index at present. However, we see three changes for the T100 index and one of the DELs - Nuvoton Tech - could...

Janaghan Jeyakumar, CFA

The Warehouse Group (WHS NZ): Tindall (Potentially) Reloads

Although there is no firm Offer on the table; given where shares are trading, and interest is apparent from the major shareholder, I'd look to get...

David Blennerhassett

Pacific Smiles' (PSQ AU) Scheme Vote: Say “aaaarrrghhhh”?!

HBF, with 10.03%, said it will vote in favour of the Scheme. Yet this transaction is effectively toast after Genesis announced the previous week it...

David Blennerhassett

ENEOS Extends Tatsuta Electric (5809) Tender Offer Means They Don't Have The Shares

ENEOS extends the Tatsuta Electric TOB. No technicality, suggesting they do not have the shares. But they say they aren't raising price. Maybe they...

Travis Lundy

A/H Premium Tracker (To 19 Jul 2024): SB Bought, NB Sold, HK Crushed Vs A-Shares

As HK stocks got crushed during the week and A-shares did well, and SOUTHBOUND did not seem to buy the banks or SOEs, AH Premia jumped. The carry...

Travis Lundy

Quiddity Leaderboard T50/100 Sep 24: Nuvoton Tech TDIV Deletion Is the Talking Point