In today’s briefing:
- Thoughts On Webjet (WEB AU)’s Demerger
- S&P/ASX Index Rebalance Preview: Review Period Nearly Done; Big Impact Changes
- Was it Worth it, Yancoal?
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Thoughts On Webjet (WEB AU)’s Demerger
- Back on the 22 May, global travel outfit Webjet (WEB AU) announced it was exploring the separation of its two divisions – Webjet and Webjet B2C – via a demerger.
- If the demerger is implemented, shareholders will receive one Webjet B2C share for every Webjet share; plus retain their existing shares in Webjet (to be renamed WEB Travel Group).
- A demerger booklet has been dispatched, with a 17th September vote on the in-specie distribution. If approved, WEB Travel (ex-entitlement) and Webjet B2C commence trading on the 23rd September.
S&P/ASX Index Rebalance Preview: Review Period Nearly Done; Big Impact Changes
- With 2 trading days left in the review period, there could be 30 adds/deletes across the S&P/ASX family of indices in September.
- Passive trackers will need to trade a lot of stock in the forecast changes, with the impact being especially large for the changes to the S&P/ASX 200 and S&P/ASX 300.
- The forecast adds have hugely outperformed the forecast deletes. Borrow recall on the deletes and increased borrow availability on the adds could result in underperformance following announcement of the changes.
Was it Worth it, Yancoal?
- Company had strong half year results with 990 million in operating EBITDA and 420 million NPAT
- They have 1.55 billion in cash and are debt-free, with majority of revenue from thermal coal production
- Despite recent 20% drop in share price, company is on track and has good long-term prospects
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