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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/aventus-group" target="_blank" data-smartkarma-citation="entities:25897:1" rel="noopener">Aventus Group (AVN AU)</a> securityholders vote on the proposed merger with <a href="https://www.smartkarma.com/entities/homeco-daily-needs-reit" target="_blank" data-smartkarma-citation="entities:33526:1" rel="noopener">HomeCo Daily Needs REIT (HDN AU)</a>/ <a href="https://www.smartkarma.com/entities/home-consortium-ltd" target="_blank" data-smartkarma-citation="entities:29082:1" rel="noopener">Home Consortium Ltd (HMC AU)</a> on 25 January.</li>
<li>If approved, <a href="https://www.smartkarma.com/entities/aventus-group" target="_blank" data-smartkarma-citation="entities:25897:1" rel="noopener">Aventus Group (AVN AU)</a> will stop trading after the close on 3 February and the shares in issue for <a href="https://www.smartkarma.com/entities/homeco-daily-needs-reit" target="_blank" data-smartkarma-citation="entities:33526:1" rel="noopener">HomeCo Daily Needs REIT (HDN AU)</a> will increase substantially.</li>
<li>That will make <a href="https://www.smartkarma.com/entities/homeco-daily-needs-reit" target="_blank" data-smartkarma-citation="entities:33526:1" rel="noopener">HDN AU</a> the highest ranked non-ASX200 constituent and a high probability add for March. There could be an earlier inclusion to replace <a href="https://www.smartkarma.com/entities/sydney-airport" target="_blank" data-smartkarma-citation="entities:19063:1" rel="noopener">SYD AU</a> in the index.</li>
</ul>



Aventus Group (AVN AU) securityholders vote on the proposed merger with HomeCo Daily Needs REIT (HDN AU)/ Home Consortium Ltd (HMC AU) on 25 January.
If approved, Aventus Group (AVN AU) will stop trading after the close on 3 February and the shares in issue for HomeCo Daily Needs REIT (HDN AU) will increase substantially.
That will make HDN AU the highest ranked non-ASX200 constituent and a high probability add for March. There could be an earlier inclusion to replace SYD AU in the index.


HDN/AVN Merger & Potential ASX200 Inclusion in March (Or Earlier)

<ul>
<li>There could be 2 changes to the ASX100 and ASX200 prior to the March rebalance due to the acquisitions of <a href="https://www.smartkarma.com/entities/ausnet-services" target="_blank" data-smartkarma-citation="entities:10293:1" rel="noopener">Ausnet Services (AST AU)</a> and <a href="https://www.smartkarma.com/entities/sydney-airport" target="_blank" data-smartkarma-citation="entities:19063:1" rel="noopener">Sydney Airport (SYD AU)</a>. </li>
<li>There will also be the large <a href="https://www.smartkarma.com/entities/bhp-group-ltd" target="_blank" data-smartkarma-citation="entities:147:1" rel="noopener">BHP Group (BHP AU)</a> upweight and funding trade following unification, and possibly the <a href="https://www.smartkarma.com/entities/afterpay-limited" target="_blank" data-smartkarma-citation="entities:26940:1" rel="noopener">Afterpay Touch (APT AU)</a> acquisition by <a href="https://www.smartkarma.com/entities/square-inc" target="_blank" data-smartkarma-citation="entities:23755:1" rel="noopener">Square Inc (SQ US)</a>. </li>
<li>Then there will be more changes to the ASX200 and ASX300 at the March rebalance. There could be a lot of new listings included in the ASX300.</li>
</ul>


There could be 2 changes to the ASX100 and ASX200 prior to the March rebalance due to the acquisitions of Ausnet Services (AST AU) and Sydney Airport (SYD AU). 
There will also be the large BHP Group (BHP AU) upweight and funding trade following unification, and possibly the Afterpay Touch (APT AU) acquisition by Square Inc (SQ US). 
Then there will be more changes to the ASX200 and ASX300 at the March rebalance. There could be a lot of new listings included in the ASX300.


ASX100/​200/300 Index Rebalance Preview (March 2022): A Lot Happening From Now to March

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>
<a href="https://www.smartkarma.com/entities/ausnet-services" target="_blank" data-smartkarma-citation="entities:10293:1" rel="noopener">AusNet Services (AST AU)</a>'s Scheme Booklet is now <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02467964-3A583994?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">out</a>. The Offer Price is A$2.6025/share. The FY22 interim dividend of $0.0475/share has already been netted.</li>
<li>The Scheme Meeting will be held on the 28 January.  The Independent Expert has concluded the Offer is fair and reasonable.</li>
<li>The Offer price implies an EV/R&amp;CAB multiple of 1.61x and an FY22E EV/EBITDA multiple of 15.3x. The Offer consideration is at a life-time high.</li>
</ul>



AusNet Services (AST AU)'s Scheme Booklet is now out. The Offer Price is A$2.6025/share. The FY22 interim dividend of $0.0475/share has already been netted.
The Scheme Meeting will be held on the 28 January.  The Independent Expert has concluded the Offer is fair and reasonable.
The Offer price implies an EV/R&amp;CAB multiple of 1.61x and an FY22E EV/EBITDA multiple of 15.3x. The Offer consideration is at a life-time high.


AusNet (AST AU): Scheme Booklet Out. Meeting on 28 January

Earlier today, <a href="https://www.smartkarma.com/entities/sydney-airport" target="_blank" data-smartkarma-citation="entities:19063:1" rel="noopener">Sydney Airport (SYD AU)</a> announced that it had entered into a Scheme Implementation Deed with a consortium of investors including IFM, AustralianSuper, QSuper and Global Infrastructure Partners.<a href="https://www.smartkarma.com/entities/sydney-airport" target="_blank" data-smartkarma-citation="entities:19063:1" rel="noopener">Sydney Airport (SYD AU)</a> shareholders will receive A$8.75 in cash, except for UniSuper where its 15.01% shareholding will be converted into an equivalent interest in the holding structure of the consortium.The <a href="https://www.smartkarma.com/entities/sydney-airport" target="_blank" data-smartkarma-citation="entities:19063:1" rel="noopener">Sydney Airport (SYD AU)</a> Board has unanimously recommended that shareholders vote in favour of the Schemes at the Scheme Meetings that are expected to be held in January with the scheme becoming effective at the end of that month.The implementation of the Scheme depends on an Independent Expert concluding that the Scheme is in the best interest of <a href="https://www.smartkarma.com/entities/sydney-airport" target="_blank" data-smartkarma-citation="entities:19063:1" rel="noopener">Sydney Airport (SYD AU)</a> shareholders, ACCC approval, FIRB approval, European Union merger clearance, approval of <a href="https://www.smartkarma.com/entities/sydney-airport" target="_blank" data-smartkarma-citation="entities:19063:1" rel="noopener">Sydney Airport (SYD AU)</a> shareholders and the Supreme Court of NSW, MAC clauses and other customary conditions.We feel the scheme is highly likely to go through and the stock will trade higher today and near the offer price as we move closer to the effective date.

Earlier today, Sydney Airport (SYD AU) announced that it had entered into a Scheme Implementation Deed with a consortium of investors including IFM, AustralianSuper, QSuper and Global Infrastructure Partners.Sydney Airport (SYD AU) shareholders will receive A$8.75 in cash, except for UniSuper where its 15.01% shareholding will be converted into an equivalent interest in the holding structure of the consortium.The Sydney Airport (SYD AU) Board has unanimously recommended that shareholders vote in favour of the Schemes at the Scheme Meetings that are expected to be held in January with the scheme becoming effective at the end of that month.The implementation of the Scheme depends on an Independent Expert concluding that the Scheme is in the best interest of Sydney Airport (SYD AU) shareholders, ACCC approval, FIRB approval, European Union merger clearance, approval of Sydney Airport (SYD AU) shareholders and the Supreme Court of NSW, MAC clauses and other customary conditions.We feel the scheme is highly likely to go through and the stock will trade higher today and near the offer price as we move closer to the effective date.

Sydney Airport (SYD AU): Scheme Implementation Deed Out; Index Impact

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<a href="https://www.smartkarma.com/entities/ausnet-services" target="_blank" data-smartkarma-citation="entities:10293:1" rel="noopener">Ausnet Services (AST AU)</a> is a diversified Australian energy infrastructure business with over $11 billion of electricity and gas network and connection assets. AusNet has received a binding proposal and entered a scheme implementation deed (SID) with a Brookfield-led consortium. The Brookfield offer of A$2.65 cash per share is a 33.8% premium to the unaffected price of A$1.98 (17 September), a 6.0% premium to Brookfield’s previous offer of A$2.50 per share and a 4.3% premium to the implied value of <a href="https://www.smartkarma.com/entities/apa-group" target="_blank" data-smartkarma-citation="entities:18658:1" rel="noopener">APA Group (APA AU)</a>’s offer of A$2.54 per share on 29 October (prior to the announcement of Brookfield’s binding offer). As outlined in <a href="https://www.smartkarma.com/insights/ausnet-s-in-a-contested-takeover-battle-between-brookfield-and-apa" target="_blank" data-smartkarma-citation="insights:57906" rel="noopener">AusNet’s in a Contested Takeover Battle Between Brookfield and APA</a>, AusNet is the subject of a contested takeover battle. A day after AusNet first revealed a conditional, non-binding indicative offer from Brookfield for A$2.50 per share, APA lobbed a non-binding indicative offer comprising A$1.820 cash and 0.0878 stapled securities in Australian Pipeline Trust and APT Investment Trust per AusNet share. Following final orders made by the Takeovers Panel, AusNet was forced to grant APA due diligence on 23 October.   In response to AusNet entering a SID with Brookfield, APA responded that it considers AusNet to be highly attractive but “will remain financially disciplined.” Due to the entry into a SID, APA’s due diligence access will be terminated. We also note that Singapore Power, a 32.74% shareholder, has expressed a preference for cash consideration and the break fee stands at A$101.7 million. AusNet states that APA has not indicated that it will be able to offer a full cash alternative or the value level at which any improvement to its offer could be made. Consequently, we think it is likely that APA will call it a day and walk away. <div class="content-highlight">Brookfield’s offer is conditional on FIRB approval. We think that presence of Australia’s Sunsuper and Canadian pension funds in the consortium should help secure FIRB approval. At the last close price of A$2.56, AusNet’s shares are trading at a 3.5% premium to Brookfield’s cash offer of A$2.65.</div>

Ausnet Services (AST AU) is a diversified Australian energy infrastructure business with over $11 billion of electricity and gas network and connection assets. AusNet has received a binding proposal and entered a scheme implementation deed (SID) with a Brookfield-led consortium. The Brookfield offer of A$2.65 cash per share is a 33.8% premium to the unaffected price of A$1.98 (17 September), a 6.0% premium to Brookfield’s previous offer of A$2.50 per share and a 4.3% premium to the implied value of APA Group (APA AU)’s offer of A$2.54 per share on 29 October (prior to the announcement of Brookfield’s binding offer). As outlined in AusNet’s in a Contested Takeover Battle Between Brookfield and APA, AusNet is the subject of a contested takeover battle. A day after AusNet first revealed a conditional, non-binding indicative offer from Brookfield for A$2.50 per share, APA lobbed a non-binding indicative offer comprising A$1.820 cash and 0.0878 stapled securities in Australian Pipeline Trust and APT Investment Trust per AusNet share. Following final orders made by the Takeovers Panel, AusNet was forced to grant APA due diligence on 23 October.   In response to AusNet entering a SID with Brookfield, APA responded that it considers AusNet to be highly attractive but “will remain financially disciplined.” Due to the entry into a SID, APA’s due diligence access will be terminated. We also note that Singapore Power, a 32.74% shareholder, has expressed a preference for cash consideration and the break fee stands at A$101.7 million. AusNet states that APA has not indicated that it will be able to offer a full cash alternative or the value level at which any improvement to its offer could be made. Consequently, we think it is likely that APA will call it a day and walk away. Brookfield’s offer is conditional on FIRB approval. We think that presence of Australia’s Sunsuper and Canadian pension funds in the consortium should help secure FIRB approval. At the last close price of A$2.56, AusNet’s shares are trading at a 3.5% premium to Brookfield’s cash offer of A$2.65.

AusNet Enters into a Binding Agreement with Brookfield

Australia

AusNet Services is an energy delivery service provider. The Company engages in electricity distribution and transmission, and owns gas distribution assets in Victoria, Australia.

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Ausnet Services (AST AU)

HDN/AVN Merger & Potential ASX200 Inclusion in March (Or Earlier)

Aventus shareholders vote on the proposed merger with HDN/HMC on 25 Jan. Approval by AVN shareholders will see a huge increase in shares out on HDN...

Brian Freitas

ASX100/200/300 Index Rebalance Preview (March 2022): A Lot Happening From Now to March

There will be many changes to the ASX100/200/300 indices from now to March due to M&A activity & price moves. Plus a large funding trade following...

Brian Freitas

AusNet (AST AU): Scheme Booklet Out. Meeting on 28 January

Trading relatively tight at gross/annualised spread of 2.7%/17%, assuming late March completion. But this appears a done deal.

David Blennerhassett

Sydney Airport (SYD AU): Scheme Implementation Deed Out; Index Impact

The Scheme Implementation Deed between SYD & the consortium is out. SYD shareholders will receive A$8.75/share in cash & effective date is expected...

Brian Freitas

AusNet Enters into a Binding Agreement with Brookfield

AusNet has entered into a SID with a Brookfield-led consortium at A$2.65 cash per share. We think that the offer is attractive and it is likely a...

Arun George

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HDN/AVN Merger & Potential ASX200 Inclusion in March (Or Earlier)

Aventus shareholders vote on the proposed merger with HDN/HMC on 25 Jan. Approval by AVN shareholders will see a huge increase in shares out on HDN...

Brian Freitas

ASX100/​200/300 Index Rebalance Preview (March 2022): A Lot Happening From Now to March

There will be many changes to the ASX100/200/300 indices from now to March due to M&A activity & price moves. Plus a large funding trade following...

Brian Freitas

AusNet (AST AU): Scheme Booklet Out. Meeting on 28 January

Trading relatively tight at gross/annualised spread of 2.7%/17%, assuming late March completion. But this appears a done deal.

David Blennerhassett

Sydney Airport (SYD AU): Scheme Implementation Deed Out; Index Impact

The Scheme Implementation Deed between SYD & the consortium is out. SYD shareholders will receive A$8.75/share in cash & effective date is expected...

Brian Freitas

AusNet Enters into a Binding Agreement with Brookfield

AusNet has entered into a SID with a Brookfield-led consortium at A$2.65 cash per share. We think that the offer is attractive and it is likely a...

Arun George

ASX100/200/300 Index Rebalance Preview (March 2022): A Lot Happening From Now to March