In today’s briefing:
- Allkem/Livent: Enlarged Charging Unit
- Greatview (468 HK): Bickering And Stalling
- St Barbara (SBM AU): Silver Lake and Genesis Minerals Brewing Battle Creates Option Value
- Delving into the Nature of the Legal Risks that Ecopro Is Facing After Yesterday’s Court Verdict
- Aekyung Chemical: Sodium-Ion Battery Materials & Candidate for KOSPI200 Inclusion in 2H23/2024
Allkem/Livent: Enlarged Charging Unit
- Aussie lithium miner Allkem Ltd (AKE AU) has inked a $US10bn+ merger with Livent (LTHM US) to form the world’s fifth largest lithium producer.
- Travis Lundy tackled this “merger-of-equals” and the index implications in Allkem/Livent (AKE AU | LTHM US) Merger Of Lithium Equals Has Index Surprises.
- The spoils of ongoing lithium demand for electric vehicle batteries will ostensibly go to the prevalent, low-cost producer. Yet Livent shareholders may question the lack of premium in the transaction.
Greatview (468 HK): Bickering And Stalling
- Back on the 1 January, Shandong Xinjufeng Technology Packaging (301296 CH) sought to acquire Jardine Matheson Holdings (JM SP)‘s 28.22% stake in Greatview Aseptic Packaging (468 HK) at HK$2.65/share.
- It was hardly a knockout price. However, Mathson had been itching to exit. Even if it involved selling its stake to one of Greatview’s competitor.
- Greatview’s board is unimpressed, and now reckons Matheson’s initial buy-in may be in breach of PRC anti-monopoly laws.
St Barbara (SBM AU): Silver Lake and Genesis Minerals Brewing Battle Creates Option Value
- A battle is brewing between Genesis Minerals (GMD AU) and Silver Lake Resources (SLR AU) for St Barbara Ltd (SBM AU)’s Leonora assets. SLR’s revised proposal addresses some Board’s concerns.
- SLR’s revised offer which shortens the completion timeline, is fully funded and higher than GMD’s offer, pressures the Board to engage to create a bidding war.
- Irrespective of the winning bidder, SBM is attractive, and the shares offer a free option on realising value from its remaining assets and investment portfolio.
Delving into the Nature of the Legal Risks that Ecopro Is Facing After Yesterday’s Court Verdict
- The severity of yesterday’s ruling has caught the market’s attention as it may provide insight into an ongoing investigation into insider trading based on undisclosed internal information.
- This matter is not limited to the operational risk caused by the imprisonment of Lee Dong-chae. There is a possibility that it could lead to delisting, depending on the circumstances.
- The substantial legal risk that could lead to delisting will further amplify price volatility. Adopting a more segmented approach appears crucial, like specific setups in each tighter interval.
Aekyung Chemical: Sodium-Ion Battery Materials & Candidate for KOSPI200 Inclusion in 2H23/2024
- Aekyung Chemical produces materials and additives for sodium-ion batteries. If sodium-ion batteries become more popular for EV batteries, Aekyung Chemical could benefit from this trend.
- Aekyung Chemical is increasingly likely to be included in KOSPI 200 index in 2H 2023 or 2024.
- The Aekyung Group completed the merger of three chemical businesses (Aekyung Petrochemical, AK ChemTech, and Aekyung Chemical) into one entity (Aekyung Chemical) in 2021.
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