In today’s briefing:
- ASMPT (522 HK): PAG Potential Privatisation?
- Swire Back To Buying Back – One-Third To Go
- Last Week in Event SPACE: Dai Nippon Printing, Melco, Hosokawa Micron,Tencent/Meituan, Ihara Science
- ECM Weekly (12th Mar 2023) – Meituan, Japan Post Bank, SBI Sumishin, JFW, Ventia, Doosan, DXN, DPC
- EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades
ASMPT (522 HK): PAG Potential Privatisation?
- Bloomberg reported that PAG and other parties have expressed interest in taking ASM Pacific Technology (522 HK) private. PAG also sounded out several lenders.
- ASMPT has three substantial shareholders (Asm International Nv (ASM NA), FIL Limited and Schroders PLC (SDR LN)) which suggests a requirement for a reasonable takeover premium.
- ASMPT previously denied a privatisation rumour in 2020. Nevertheless, peers and historical multiples imply a fair price range of HK$82-97 per share, 11-31% premium to the last close.
Swire Back To Buying Back – One-Third To Go
- After two months of zero buybacks under their HK$4bn buyback programme, on Friday Swire Pacific (A) (19 HK) | Swire Pacific (B) (87 HK) again bought back shares.
- Ostensibly, it was as Swire A shares fell below HK$60/share. They were 65% of B volume and 51% of A volume on Friday – not shy about their return.
- Assuming participation patterns normalise and the shares don’t bounce back above the self-imposed limit, the buyback will probably last 6-7 weeks more. The div arb is real if you hold.
Last Week in Event SPACE: Dai Nippon Printing, Melco, Hosokawa Micron,Tencent/Meituan, Ihara Science
- Dai Nippon Printing (7912 JP) is a range trade. The juice is in the speed of the Corporate Buyback and how excited people get.
- With the renewal of the gaming concession in the bag and Melco Resorts (MLCO US) up 128% in the past six months, Melco (200 HK) has extracted ~HK$2.5bn from MLCO.
- Hosokawa Micron (6277 JP)‘s current PER of 9.9x ignores that net cash and securities holdings is about half of market cap. This is a cheap stock.
ECM Weekly (12th Mar 2023) – Meituan, Japan Post Bank, SBI Sumishin, JFW, Ventia, Doosan, DXN, DPC
- Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
- IPO activity appears to be picking up across the region, with deal in Japan, Hong Kong, US and Indonesia being lined up.
- Placements as well picked up pace, despite the ongoing Japan Post Bank (7182 JP)‘s mega deal set to suck liquidity out of the system for a while.
EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades
- Weekly summary of vol changes and moves across Global Markets
- Analysing ATM volatility and skew changes over the last 5 days
- We suggest a few trades to take advantage of the implied vol surfaces
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