Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Aussie gold miners <a href="https://www.smartkarma.com/entities/red-5-ltd" target="_blank" data-smartkarma-citation="entities:7940:1" rel="noopener">Red 5 Ltd (RED AU)</a> and <a href="https://www.smartkarma.com/entities/silver-lake-resources-ltd" target="_blank" data-smartkarma-citation="entities:6529:1" rel="noopener">Silver Lake Resources (SLR AU)</a> have <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02769196-6A1192661" target="_blank" rel="noopener">announced</a> a "merger of equals" via a Scheme of Arrangement.</li>
<li>Red is offering 3.434 new shares for every SLR share, and will hold ~51.7% of the merged entity, with SLR shareholders holding the remaining 48.3%.</li>
<li>This has the unanimous backing of both boards. Yet SLR appears to be given short shrift on the merger ratio. Plus SLR holds ~11.9% of shares out in Red.</li>
</ul>


Aussie gold miners Red 5 Ltd (RED AU) and Silver Lake Resources (SLR AU) have announced a "merger of equals" via a Scheme of Arrangement.
Red is offering 3.434 new shares for every SLR share, and will hold ~51.7% of the merged entity, with SLR shareholders holding the remaining 48.3%.
This has the unanimous backing of both boards. Yet SLR appears to be given short shrift on the merger ratio. Plus SLR holds ~11.9% of shares out in Red.


Red 5/Silver Lake: US$1.5bn Aussie Gold Merger

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.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/silver-lake-resources-ltd" target="_blank" data-smartkarma-citation="entities:6529:1" rel="noopener">Silver Lake Resources (SLR AU)</a> and <a href="https://www.smartkarma.com/entities/red-5-ltd" target="_blank" data-smartkarma-citation="entities:7940:1" rel="noopener">Red 5 Ltd (RED AU)</a> will merge. SLR shareholders receive 3.434 RED shares per SLR share, implying A$1.133, a 10.4% discount to the undisturbed price. </li>
<li>The merger is strategically sensible as the combined entity should re-rate due to scale, diversification and better cash flow generation.</li>
<li>The merger terms are more favourable for RED shareholders than SLR shareholders, posing a risk for the vote. The merger may draw out rival suitors.  </li>
</ul>



Silver Lake Resources (SLR AU) and Red 5 Ltd (RED AU) will merge. SLR shareholders receive 3.434 RED shares per SLR share, implying A$1.133, a 10.4% discount to the undisturbed price. 
The merger is strategically sensible as the combined entity should re-rate due to scale, diversification and better cash flow generation.
The merger terms are more favourable for RED shareholders than SLR shareholders, posing a risk for the vote. The merger may draw out rival suitors.  


Silver Lake (SLR AU): Merger Terms Favour Red 5 (RED AU)

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

<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>'s holding 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> continues to increase and that could lead to an index change at the June rebalance, if not earlier.</li>
<li>The <a href="https://www.smartkarma.com/entities/silver-lake-resources-ltd" target="_blank" data-smartkarma-citation="entities:6529:1" rel="noopener">Silver Lake Resources (SLR AU)</a>/ <a href="https://www.smartkarma.com/entities/red-5-ltd" target="_blank" data-smartkarma-citation="entities:7940:1" rel="noopener">Red 5 Ltd (RED AU)</a> merger could lead to an index change early June.</li>
<li>
<a href="https://www.smartkarma.com/entities/cie-de-saint-gobain" target="_blank" data-smartkarma-citation="entities:21547:1" rel="noopener">Cie De Saint-Gobain (SGO FP)</a>'s acquisition of <a href="https://www.smartkarma.com/entities/csr-ltd" target="_blank" data-smartkarma-citation="entities:17380:1" rel="noopener">CSR Ltd (CSR AU)</a> could lead to another index change just ahead of the regular June rebalance.</li>
</ul>



Seven Group Holdings (SVW AU)'s holding in Boral Ltd (BLD AU) continues to increase and that could lead to an index change at the June rebalance, if not earlier.
The Silver Lake Resources (SLR AU)/ Red 5 Ltd (RED AU) merger could lead to an index change early June.

Cie De Saint-Gobain (SGO FP)'s acquisition of CSR Ltd (CSR AU) could lead to another index change just ahead of the regular June rebalance.


ASX200 Index Rebalance Preview: Potential Changes Prior to the June Rebalance

<ul>
<li>
<a href="https://www.smartkarma.com/entities/de-grey-mining-ltd" target="_blank" data-smartkarma-citation="entities:6192:1" rel="noopener">De Grey Mining (DEG AU)</a>, which boasts one of Australia's largest undeveloped gold projects, has <a href="https://announcements.asx.com.au/asxpdf/20241202/pdf/06c3wj280vb2r0.pdf" target="_blank" rel="noopener">announced</a> a merger, by way of  Scheme, with <a href="https://www.smartkarma.com/entities/northern-star-resources-ltd" target="_blank" data-smartkarma-citation="entities:4243:1" rel="noopener">Northern Star Resources (NST AU)</a>.</li>
<li>Northern Star is offering 0.119 new shares for every De Grey share, and will hold ~80.1% of the combined entity, with De Grey shareholders the remaining ~19.9%. </li>
<li>Terms back out an implied price of A$2.08/share, or a ~37% premium to last close. This Offer  has the unanimous backing of both boards. </li>
</ul>



De Grey Mining (DEG AU), which boasts one of Australia's largest undeveloped gold projects, has announced a merger, by way of  Scheme, with Northern Star Resources (NST AU).
Northern Star is offering 0.119 new shares for every De Grey share, and will hold ~80.1% of the combined entity, with De Grey shareholders the remaining ~19.9%. 
Terms back out an implied price of A$2.08/share, or a ~37% premium to last close. This Offer  has the unanimous backing of both boards. 


Northern Star’s A$5bn Tilt for De Grey (DEG AU)

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

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.

Quantitative Analysis

<ul>
<li>We analyzed the changes in short interest of ASX Stocks as of Jun 14th (reported today) which has an aggregated short interest worth USD19.3bn.</li>
<li>We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.</li>
<li>We highlight short interest changes in BHP, Champion Iron, Woolworths.</li>
</ul>


We analyzed the changes in short interest of ASX Stocks as of Jun 14th (reported today) which has an aggregated short interest worth USD19.3bn.
We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.
We highlight short interest changes in BHP, Champion Iron, Woolworths.


ASX Short Interest Weekly (Jun 14th): BHP, Champion Iron, Woolworths

Australia

Silver Lake Resources Limited is a mineral exploration company. The Company is focused on gold exploration in Western Australia.

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Silver Lake Resources (SLR AU)

Red 5/Silver Lake: US$1.5bn Aussie Gold Merger

Currently trading slightly through terms. IF you can take down borrow cheaply on Red, look to go long SLR, short Red here. There could still be a...

David Blennerhassett

Silver Lake (SLR AU): Merger Terms Favour Red 5 (RED AU)

The merger terms are more favourable for RED shareholders than SLR shareholders, posing a risk for the vote. The merger may draw out rival suitors.

Arun George

ASX200 Index Rebalance Preview: Potential Changes Prior to the June Rebalance

Upcoming M&A activity will result in ad hoc inclusions to the ASX200 prior to the June rebal. There could be 2-3 adds in the first few weeks of...

Brian Freitas

Northern Star’s A$5bn Tilt for De Grey (DEG AU)

Terms are fair. The implied Offer price for De Grey is a lifetime high. If you can take down borrow cheaply on Northern Star, do so. Expect the...

David Blennerhassett

ASX Short Interest Weekly (Jun 14th): BHP, Champion Iron, Woolworths

We analyzed ASX short interest report for the past week and highlight short interest changes in BHP, Champion Iron, Woolworths.

Ke Yan, CFA, FRM

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