In today’s briefing:
- IRC Limited (1029 HK): Closing Date Extended as the Risk/Reward Turns Unattractive
- Costa Group (CGC AU): Potential ASX200 Replacements
- Morning Views Asia: Innergex Renewable Energy, Vedanta Resources
IRC Limited (1029 HK): Closing Date Extended as the Risk/Reward Turns Unattractive
- Irc Ltd (1029 HK) notes that the offeror (Nikolai Levitskii) and acceptances reached 35.77% at the first closing date, materially short of the 50% minimum acceptance condition.
- The offeror has extended the closing date by 39 days (30 business days) to 20 February, the last day the offer can become or be declared unconditional.
- The rise in iron ore prices and a light offer pose challenges. The risk/reward profile is unfavourable as the upside (5.4% spread) outweighs the downside (20.5% to the undistributed price).
Costa Group (CGC AU): Potential ASX200 Replacements
- The Scheme Meeting for PSP’s acquisition of Costa Group Holdings (CGC AU) will be held on 30 January and Costa Group could stop trading after the close on 8 February.
- Strike Energy (STX AU), SiteMinder (SDR AU) and Audinate (AD8 AU) are potential inclusions to the S&P/ASX 200 (AS51 INDEX) at an ad hoc rebalance.
- For the stocks that are not added at the ad hoc rebalance, there is a very high probability of S&P/ASX 200 (AS51 INDEX) inclusion at the March rebalance.
Morning Views Asia: Innergex Renewable Energy, Vedanta Resources
Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.