Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/seven-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:803:1" rel="noopener">Seven Group Holdings (SVW AU)</a> holds 71.59% in <a href="https://www.smartkarma.com/entities/boral-ltd" target="_blank" data-smartkarma-citation="entities:1487:1" rel="noopener">Boral Ltd (BLD AU)</a> and is looking to acquire the remaining shares at A$6.05/share via a mix of SVW stock and cash.</li>
<li>The offer consideration ratchets higher to A$6.15/share if SVW's aggregate shareholding reaches 80% and to A$6.25/share if SVW's aggregate shareholding reaches 90.6%.</li>
<li>
<a href="https://www.smartkarma.com/entities/seven-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:803:1" rel="noopener">Seven Group Holdings (SVW AU)</a> is an addition to a global index at the end of the month and a drop in the stock post inclusion will affect <a href="https://www.smartkarma.com/entities/boral-ltd" target="_blank" data-smartkarma-citation="entities:1487:1" rel="noopener">Boral Ltd</a>.</li>
</ul>



Seven Group Holdings (SVW AU) holds 71.59% in Boral Ltd (BLD AU) and is looking to acquire the remaining shares at A$6.05/share via a mix of SVW stock and cash.
The offer consideration ratchets higher to A$6.15/share if SVW's aggregate shareholding reaches 80% and to A$6.25/share if SVW's aggregate shareholding reaches 90.6%.

Seven Group Holdings (SVW AU) is an addition to a global index at the end of the month and a drop in the stock post inclusion will affect Boral Ltd.


Boral (BLD AU): Seven Group (SVW AU)'s Best & Final Offer

<ul>
<li>
<a href="https://www.smartkarma.com/entities/renesas-electronics-corp" target="_blank" data-smartkarma-citation="entities:15933:1" rel="noopener">Renesas Electronics (6723 JP)</a> has entered a Scheme Implementation Agreement to acquire <a href="https://www.smartkarma.com/entities/altium-ltd" target="_blank" data-smartkarma-citation="entities:18626:1" rel="noopener">Altium Ltd (ALU AU)</a> at A$68.5/share implying an equity value of A$9.1bn and an Enterprise Value of A$8.8bn.</li>
<li>The offer price is a 33.6% premium to the last close and a larger premium to VWAPs ranging from 30 days to 180 days.</li>
<li>There will be ad hoc inclusions to the S&amp;P/ASX 100 Index and the <a href="https://www.smartkarma.com/entities/s-p-asx-200" target="_blank" data-smartkarma-citation="entities:22901:1" rel="noopener">S&amp;P/ASX 200 (AS51 INDEX)</a> on <a href="https://www.smartkarma.com/entities/altium-ltd" target="_blank" data-smartkarma-citation="entities:18626:1" rel="noopener">Altium Ltd (ALU AU)</a>'s last trading day (expected second half of 2024).</li>
</ul>



Renesas Electronics (6723 JP) has entered a Scheme Implementation Agreement to acquire Altium Ltd (ALU AU) at A$68.5/share implying an equity value of A$9.1bn and an Enterprise Value of A$8.8bn.
The offer price is a 33.6% premium to the last close and a larger premium to VWAPs ranging from 30 days to 180 days.
There will be ad hoc inclusions to the S&amp;P/ASX 100 Index and the S&amp;P/ASX 200 (AS51 INDEX) on Altium Ltd (ALU AU)'s last trading day (expected second half of 2024).


Renesas (6723 JP) To Acquire Altium (ALU AU) In a A$9.1bn Deal

<ul>
<li>With two days left in the review period, there could be 28 adds/deletes across the S&amp;P/ASX family of indices in March.</li>
<li>There is nearly A$1bn to sell in <a href="https://www.smartkarma.com/entities/newmont-corp" target="_blank" data-smartkarma-citation="entities:40416:1" rel="noopener">Newmont (NEM AU)</a> due to the potential S&amp;P/ASX 20 Index deletion and a large decrease in the number of shares held in Australia.</li>
<li>There could be 2-41 days of ADV to buy in the index inclusions while the impact on the deletions will range between 0.7-24 days of ADV.</li>
</ul>


With two days left in the review period, there could be 28 adds/deletes across the S&amp;P/ASX family of indices in March.
There is nearly A$1bn to sell in Newmont (NEM AU) due to the potential S&amp;P/ASX 20 Index deletion and a large decrease in the number of shares held in Australia.
There could be 2-41 days of ADV to buy in the index inclusions while the impact on the deletions will range between 0.7-24 days of ADV.


S&P/​​​​​​​​​ASX Index Rebalance Preview: Newmont Still Has Nearly A$1bn to Sell

Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Pan-Asia Index Flows & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

<ul>
<li>In this insight, we take a look at the potential index changes for ASX 300, 200, 100, 50, and 20 in the run-up to the March 2024 index review.</li>
<li>The conclusion of the <a href="https://www.smartkarma.com/entities/costa-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:22632:1" rel="noopener">Costa Group Holdings (CGC AU)</a> M&amp;A deal could trigger an index change in February 2024.</li>
<li>Separately, there could be a "surprise" index change in March 2024 caused by a long-term trading suspension. </li>
</ul>


In this insight, we take a look at the potential index changes for ASX 300, 200, 100, 50, and 20 in the run-up to the March 2024 index review.
The conclusion of the Costa Group Holdings (CGC AU) M&amp;A deal could trigger an index change in February 2024.
Separately, there could be a "surprise" index change in March 2024 caused by a long-term trading suspension. 


Quiddity Leaderboard ASX Mar 24: Exp ADDs Vs DELs Trade Successful; More to Come?

<ul>
<li>The review period for a global index commenced last week and will run through this week as well.</li>
<li>The announcement of the changes for the LQ45 Index should be announced in the coming week and will be implemented at the close on 31 January.</li>
<li>Huge inflows to <a href="https://www.smartkarma.com/entities/shanghai-shenzhen-csi-300-inde" target="_blank" data-smartkarma-citation="entities:22906:1" rel="noopener">CSI 300 Index</a> trackers during the week while there was a big outflow from <a href="https://www.smartkarma.com/entities/tracker-fund-of-hong-kong-ltd" target="_blank" data-smartkarma-citation="entities:29257:1" rel="noopener">Tracker Fund of Hong Kong (2800 HK)</a>. </li>
</ul>


The review period for a global index commenced last week and will run through this week as well.
The announcement of the changes for the LQ45 Index should be announced in the coming week and will be implemented at the close on 31 January.
Huge inflows to CSI 300 Index trackers during the week while there was a big outflow from Tracker Fund of Hong Kong (2800 HK). 


Index Rebalance & ETF Flow Recap: ASX, KS200, KQ150, HSIII, STTF, L&F, Costa Group, Japan, Bud APAC

Australia

Audinate Group Limited develops software. The Company offers digital media networking solutions in commercial installed systems, live sound, broadcasting, houses of worship, corporate systems, professional recording, and transportation. Audinate Group serves customers worldwide.

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Audinate (AD8 AU)

Boral (BLD AU): Seven Group (SVW AU)'s Best & Final Offer

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Brian Freitas

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Brian Freitas

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There could be 28 adds/deletes across the S&P/ASX family of indices in March. Newmont will have around A$1bn to sell. Shorts have been soaring on...

Brian Freitas

Quiddity Leaderboard ASX Mar 24: Exp ADDs Vs DELs Trade Successful; More to Come?

I see 6 changes for ASX 200 between now and the March 2024 rebalance. Both ASX 20 and ASX 100 could see one change each. Many index changes...

Janaghan Jeyakumar, CFA

Index Rebalance & ETF Flow Recap: ASX, KS200, KQ150, HSIII, STTF, L&F, Costa Group, Japan, Bud APAC

This recap highlights Insights covering Asian index rebalances (announcements/ forecasts/ IPO Fast Entry/ M&A driven changes). We also highlight...

Brian Freitas

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Boral (BLD AU): Seven Group (SVW AU)'s Best & Final Offer

Seven Group is an index inclusion and is looking to buy ~28% of Boral via a mix of stock and cash. SVW could drop post the index inclusion and that...

Brian Freitas

Renesas (6723 JP) To Acquire Altium (ALU AU) In a A$9.1bn Deal

Renesas has entered a SIA to acquire Altium at A$68.5/share for an implied equity value of A$9.1bn. The offer price is a 33.6% premium to the last...

Brian Freitas

S&P/​​​​​​​​​ASX Index Rebalance Preview: Newmont Still Has Nearly A$1bn to Sell

There could be 28 adds/deletes across the S&P/ASX family of indices in March. Newmont will have around A$1bn to sell. Shorts have been soaring on...

Brian Freitas

Quiddity Leaderboard ASX Mar 24: Exp ADDs Vs DELs Trade Successful; More to Come?

I see 6 changes for ASX 200 between now and the March 2024 rebalance. Both ASX 20 and ASX 100 could see one change each. Many index changes...

Janaghan Jeyakumar, CFA

Index Rebalance & ETF Flow Recap: ASX, KS200, KQ150, HSIII, STTF, L&F, Costa Group, Japan, Bud APAC

This recap highlights Insights covering Asian index rebalances (announcements/ forecasts/ IPO Fast Entry/ M&A driven changes). We also highlight...

Brian Freitas

S&P/ASX Index Rebalance Preview: Newmont Still Has Nearly A$1bn to Sell