In today’s briefing:
- Fengxiang’s Unconditional MGO at HK$ 1.5132 from PAG
- Elon Has “Freed” Twitter: Send The Ravens
- Suzuki (7269 JT) | Way Too Cheap Ahead of 2Q Earnings – India’s Maruti (MSIL IN) Shows the Way
- ECM Weekly (30th Oct 2022) – Giant Biogene, Sunshine, I-Tail, Global Health, Lygend, Fusion, Blibli
- Hong Kong CEO & Director Dealings: 28th Oct: Haichang Ocean Park, CC Land, GBA
Fengxiang’s Unconditional MGO at HK$ 1.5132 from PAG
- PAG is the successful bidder for Shandong Fengxiang (9977 HK)‘s controlling shareholder’s 70.92% stake at HK$1.5132 per H Share (RMB1.3822 per domestic share).
- As PAG has no compulsory acquisition rights, it will also seek shareholder delisting approval. The MGO is not conditional on the approval of the delisting resolution.
- The share sale transfer requires SAMR approval which will be forthcoming. Our best guess is the MGO completes end-January 2023. At the last close, the gross spread is 14.6%.
Elon Has “Freed” Twitter: Send The Ravens
- Elon Musk closed his Twitter deal Thursday as confirmed today via a filing with the SEC to delist its stock.
- We don’t know if Elon sold more Tesla to cover his cash shortfall. If not, where did he get it?
- He also sent Tesla’s engineers to assess how to fix Twitter. Like, sharing resources. Establishing synergies. Maybe creating an excuse to direct Tesla to “invest” into Twitter, as I suspected.
Suzuki (7269 JT) | Way Too Cheap Ahead of 2Q Earnings – India’s Maruti (MSIL IN) Shows the Way
- Maruti Suzuki reported above Consensus 2Q driven by strong volumes and improved margins
- Earnings bode well for Suzuki’s 2Q earnings on Nov 8. Also, Maruti indicated significant easing of semi-driven supply constraints. Positive readacross for Suzuki.
- Suzuki’s ex-Maruti operations are now cheaper than ever at under 2.5x PER. We see upside to earnings vs. Consensus and keep our bullish stance on the stock.
ECM Weekly (30th Oct 2022) – Giant Biogene, Sunshine, I-Tail, Global Health, Lygend, Fusion, Blibli
- Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
- On the IPO front, Blibli managed to upsize its IPO, while a few companies will launch their Indian IPOs in the coming week.
- There were no notable placements this week, which wasn’t surprising after Monday’s market turmoil.
Hong Kong CEO & Director Dealings: 28th Oct: Haichang Ocean Park, CC Land, GBA
- 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. However, such disclosures are by no means an absolute.
- These insights may flag those companies where shares have been pledged. Stocks mentioned include Haichang Ocean Park Holdings (2255 HK), C C Land (1224 HK), and GBA Holdings (261 HK).
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