Utilities Sector

• KKR is pursuing the acquisition and delisting of the Portuguese renewable energy company Greenvolt-Energias Renovaveis (GVOLT PL) at €8.30/share in cash, an 11.5% premium to CSP, 95.3% premium to IPO price.
• The price also represents 30% discount to the highest closing share price, but core shareholders (60.86%) seem happy to sell, which will trigger a mandatory offer.
• The offer doesn’t seem generous. Although KKR could sweeten the price to encourage minorities to tender, precedents of Solarpack and Opdenergy do not invite much optimism. Long.

• TLNE is an independent power producer that has emerged from bankruptcy as a public company with the stock not reflecting the intrinsic value of the assets the Company owns
• The reduced leverage profile creates a valuation appeal. However, it is the catalyst from what TLNE could achieve at its Susquehanna nuclear plant that could enhance shareholder value
• TLNE has been private for more than six years and is now trading on the OTC Markets making it likely that many investors have yet to hear about the Company

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.

• Adani Green Energy
• Adani Ports & Special Economic Zone
• ENN Natural Gas
• Greentown China
• Innergex Renewable Energy
• SK Hynix
• Tata Motors ADR

• Iberdrola SA (IBE SM)‘s U.S. subsidiary Avangrid (AGR US) terminated its $8.3 billion deal for PNM Resources (PNM US) as it could not New Mexico regulatory approval by 31 December 2023.
• Iberdrola lost its patience but freed up €11.5 billion from that deal, together with €5.5 billion from assets sold to the Mexican Government. That’s a lot for inorganic growth. 
• PNM, at 9.7x EV/Fwd EBITDA, is trading in line with comparables, thus on a multiples basis there should be limited downside to the share price.

• The ES50 Index is one of the most highly-tracked indices in Europe and the annual index review takes place in September every year.
• This annual index review usually results in some of the most significant index flow events in Europe every year typically amounting to billions of dollars.
• In this insight, we take an early look the names leading the race to become ADDs/DELs for the upcoming index review in September 2024.

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.

• Adani Green Energy
• Azure Power Global Ltd
• China Jinmao Holdings
• Greentown China
• Hopson Development
• JSW Steel Ltd

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.

• China Jinmao Holdings
• China Oil And Gas
• Vedanta Resources

• There could be 18 changes for the Nifty200 Momentum 30 Index that will be implemented at the close on 28 December.
• If all changes are on expected lines, one-way turnover is estimated at 58.2% and that will result in a one-way trade of INR 20bn (US$240m).
• Since July, the potential adds to the index have outperformed the index and the potential deletes by a big margin. Momentum could keep the outperformance going till implementation date.

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.

• China Water Affairs

• The ES50 Index is one of the most highly-tracked indices in Europe and the annual index review takes place in September every year.
• This annual index review usually results in some of the most significant index flow events in Europe every year typically amounting to billions of dollars.
• In this insight, we take an early look the names leading the race to become ADDs/DELs for the upcoming index review in September 2024.

• The data in this insight is collated from the “shareholding disclosure” link on the HKEx website.
• Often there is a corresponding HKEx announcement on the increase – or decrease – in the shareholding by directors. Or pledging. However, such disclosures are by no means an absolute.
• The key stocks mentioned in this regular insight are ENN Energy (2688 HK), PCCW Ltd (8 HK) and Wuxi Biologics (2269 HK).