Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>#2 shareholder and erstwhile activist 3D Investment Partners writes a letter to <a href="https://www.smartkarma.com/entities/toshiba-corp" target="_blank" data-smartkarma-citation="entities:637:1" rel="noopener">Toshiba Corp (6502 JP)</a>'s Board demanding 3 measures before the AGM. </li>
<li>
<a href="https://www.smartkarma.com/entities/pendal-group-ltd" target="_blank" data-smartkarma-citation="entities:15795:1" rel="noopener">Pendal Group (PDL AU)</a> is assessing Perpetual's cash/scrip Offer provides an indicative price of $6.23/share; however, the wording in the announcement suggests the bid is opportunistic and will be rejected. </li>
<li>Because of rising regulatory requirements for NBFCs, a <a href="https://www.smartkarma.com/entities/hdfc-bank-ltd-4b6b7a92-9087-468d-9dbe-ab169e77f014" target="_blank" data-smartkarma-citation="entities:558:1" rel="noopener">HDFC Bank (HDFCB IN)</a> /<a href="https://www.smartkarma.com/entities/housing-development-finance" target="_blank" data-smartkarma-citation="entities:252:1" rel="noopener">HDFC Limited (HDFC IN)</a> was to be expected at some point.</li>
</ul>


#2 shareholder and erstwhile activist 3D Investment Partners writes a letter to Toshiba Corp (6502 JP)'s Board demanding 3 measures before the AGM. 

Pendal Group (PDL AU) is assessing Perpetual's cash/scrip Offer provides an indicative price of $6.23/share; however, the wording in the announcement suggests the bid is opportunistic and will be rejected. 
Because of rising regulatory requirements for NBFCs, a HDFC Bank (HDFCB IN) /HDFC Limited (HDFC IN) was to be expected at some point.


Last Week in Event SPACE: Toshiba, Pendal, HDFC Bank, YZJ Shipbuilding, BHP, Virtus

Travis Lundy

<ul>
<li>
<a href="https://www.smartkarma.com/entities/woodside-petroleum-ltd" target="_blank" data-smartkarma-citation="entities:177:1" rel="noopener">Woodside Petroleum (WPL AU)</a> and <a href="https://www.smartkarma.com/entities/bhp-group-ltd" target="_blank" data-smartkarma-citation="entities:147:1" rel="noopener">BHP Group Ltd (BHP AU)</a> proposed a merger between Woodside and BHP Petroleum in August 2021, and signed the deal in November 2021.</li>
<li>It required regulatory approvals (of which it already has some) and Woodside shareholder approval, and the Woodside shares to be received by BHP would be distributed to BHP Shareholders.</li>
<li>Today, Woodside presented the <a href="https://www.asx.com.au/asxpdf/20220408/pdf/457vkgr3tsd00s.pdf" target="_blank" rel="noopener">Explanatory Memorandum</a>, the <a href="https://www.asx.com.au/asxpdf/20220408/pdf/457vkk523x0q8z.pdf" target="_blank" rel="noopener">Independent Expert Report</a> ("fair and reasonable"), and <a href="https://www.asx.com.au/asxpdf/20220408/pdf/457vkbn81yv3cr.pdf" target="_blank" rel="noopener">information about the 19 May AGM vote</a>. This deal could be done 1 June.</li>
</ul>



Woodside Petroleum (WPL AU) and BHP Group Ltd (BHP AU) proposed a merger between Woodside and BHP Petroleum in August 2021, and signed the deal in November 2021.
It required regulatory approvals (of which it already has some) and Woodside shareholder approval, and the Woodside shares to be received by BHP would be distributed to BHP Shareholders.
Today, Woodside presented the Explanatory Memorandum, the Independent Expert Report ("fair and reasonable"), and information about the 19 May AGM vote. This deal could be done 1 June.


Woodside / BHP Petroleum Merger On Tap; Index Impact Minimal but Flowback May Not Be

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

<ul>
<li>ZIP announced that it would acquire Sezzle in an all-stock deal. It also announced its earnings and that it would raise A$149m (A$107m) from a placement.</li>
<li>We have also covered the Oct 2020 placements in our earlier note, <a href="https://www.smartkarma.com/insights/zip-placement-sorry-it-s-not-you-it-s-me" target="_blank" data-smartkarma-citation="insights:44380" rel="noopener">Zip Placement - Sorry, It's Not You. It's Me</a>. </li>
<li>In this note we will talk about the recent developments and run the deal through our ECM framework.</li>
</ul>


ZIP announced that it would acquire Sezzle in an all-stock deal. It also announced its earnings and that it would raise A$149m (A$107m) from a placement.
We have also covered the Oct 2020 placements in our earlier note, Zip Placement - Sorry, It's Not You. It's Me. 
In this note we will talk about the recent developments and run the deal through our ECM framework.


ZIP Acquisition and Unlinked Placement - Too Many Things at Once

Asset Allocation & Fund Positioning, Copley Fund Research

Steven Holden

Asset Allocation & Fund Positioning

Copley Fund Research

Copley Fund Research provide research and data on asset allocation among Global and Emerging Market equity funds.  The analysis details absolute and relative positioning across countries, sectors and industries together with highly granular data on single stock and single fund allocations.  The data is updated monthly with time series going back to January 2011.

Global Research - Analysis of 165 prominent Global equity funds, combined AUM $335bn
GEM Research - Analysis of 127 prominent global EM equity funds, combined AUM $250bn

Asset Allocation - Global and GEM Equity

Cross Asset Strategy

<ul>
<li>Less than half the active Global managers in our analysis have exposure to Australian stocks, the lowest levels in over a decade.</li>
<li>Versus the MSCI ACWI benchmark, Australia is the 3rd largest underweight country holding globally, with sector-wide declines in ownership occurring over the last 6-months, headed by Materials.</li>
<li>Underweights are driven by BHP Group (BHP AU) and Commonwealth Bank of Australia (CBA AU), with CSL Ltd (CSL AU) the most widely held stock in Australia.</li>
</ul>


Less than half the active Global managers in our analysis have exposure to Australian stocks, the lowest levels in over a decade.
Versus the MSCI ACWI benchmark, Australia is the 3rd largest underweight country holding globally, with sector-wide declines in ownership occurring over the last 6-months, headed by Materials.
Underweights are driven by BHP Group (BHP AU) and Commonwealth Bank of Australia (CBA AU), with CSL Ltd (CSL AU) the most widely held stock in Australia.


Australia:  Underweight & Underowned as Allocations Slip to All-Time Lows.

<ul>
<li>Andrew Forrest's Wyloo Consolidated, with 9.8% of shares out, will now support the <a href="https://www.smartkarma.com/entities/igo-ltd" target="_blank" data-smartkarma-citation="entities:462:1" rel="noopener">IGO Ltd (IGO AU)</a> / <a href="https://www.smartkarma.com/entities/western-areas-ltd" target="_blank" data-smartkarma-citation="entities:15497:1" rel="noopener">Western Areas (WSA AU)</a>, just three weeks after paying through terms. </li>
<li>That pledge pivots off a newly-inked side agreement between IGO and Wyloo to jointly evaluate opportunities for nickel downstream processing in Australia.</li>
<li>This removes the immediate prospect of a competing Offer from Wyloo, and in turn, IGO's need to bump terms. Yet <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> still waits in the wings.</li>
</ul>


Andrew Forrest's Wyloo Consolidated, with 9.8% of shares out, will now support the IGO Ltd (IGO AU) / Western Areas (WSA AU), just three weeks after paying through terms. 
That pledge pivots off a newly-inked side agreement between IGO and Wyloo to jointly evaluate opportunities for nickel downstream processing in Australia.
This removes the immediate prospect of a competing Offer from Wyloo, and in turn, IGO's need to bump terms. Yet BHP Group (BHP AU) still waits in the wings.


Investors Caught Out As Twiggy Backs IGO's Offer For Western Areas

Australia

BHP Group Ltd operates as an international resources company. The Company offers mineral exploration and production, including coal, iron ore, gold, titanium, ferroalloys, nickel, and copper concentrate, as well as petroleum exploration, production, and refining. BHP Group serves customers worldwide.

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BHP Group Ltd (BHP AU)

Last Week in Event SPACE: Toshiba, Pendal, HDFC Bank, YZJ Shipbuilding, BHP, Virtus

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

Woodside / BHP Petroleum Merger On Tap; Index Impact Minimal but Flowback May Not Be

Woodside has announced its Shareholder Meeting Date for the BHP Petroleum Merger Approval (it was already known). The IE has declared it "fair and...

Travis Lundy

ZIP Acquisition and Unlinked Placement - Too Many Things at Once

ZIP announced that it would acquire Sezzle in an all-stock deal. It also announced its earnings and that it would raise A$149m (A$107m) from a...

Sumeet Singh

Australia: Underweight & Underowned as Allocations Slip to All-Time Lows.

Less than half the active Global managers in our analysis have exposure to Australian stocks, the lowest levels in over a decade.

Steven Holden

Investors Caught Out As Twiggy Backs IGO's Offer For Western Areas

Trading tight at a gross/annualised return of 0.9%/4.7% assuming late April completion. Pricing for WSA appears full. But I would not rule out BHP...

David Blennerhassett

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