In today’s briefing:
- 3D Launches Partial Tender Offer on NTT UD REIT (8956)
- NTT UD REIT (8956 JP): 3D’s Unsolicited Partial Tender Offer
- Solactive Global Uranium & Nuclear Components Index Rebalance: DeepSeek Led Selloff & 1 Delete
- Fast Retailing (9983 JP): Double Capping & The Reverse Funding Trade
- Japfa (JAP SP): The Santosa Family (Finally) Makes A Move
- SLB Dev (SLB SP): Ong Family Offer By Way Of A Scheme.
- Shandong Hi-Speed New Energy (1250 HK)’s Unconditional MGO Now Open
- Venture Global (VG US): Excluded from Global & US Indices Despite $50B Market Cap
- Red Hawk (RHK AU): Fortescue’s Off-Market Offer
- Dada Nexus (DADA US): JD.Com’s US$2/ADS Non-Binding Offer
3D Launches Partial Tender Offer on NTT UD REIT (8956)
- Seemingly out of the blue, Singapore-based activist investment fund 3D Investment Partners has launched a partial tender offer at a small premium on NTT UD REIT Investment Corporation (8956 JP).
- 3DIP currently owns 2.2% and at maximum, will own 15.00% of the REIT units outstanding less treasury units. It intends to own the units for “pure investment purposes.”
- “Shareholder” structure is different for J-REITs vs companies. And this J-REIT has an interesting future possibility. But…
NTT UD REIT (8956 JP): 3D’s Unsolicited Partial Tender Offer
- 3D has announced an unsolicited partial tender offer for NTT UD REIT Investment Corporation (8956 JP) at JPY131,890 per unit, a 10.0% premium to the undisturbed price.
- The minimum number of units to be purchased is 115,279 (7.80% ownership ratio), and the maximum number of units to be purchased is 189,128 (12.80% ownership ratio).
- The modest premium and an implied P/NAV <1x suggest a lightish offer. 3D will have to rethink terms as shares are trading through terms.
Solactive Global Uranium & Nuclear Components Index Rebalance: DeepSeek Led Selloff & 1 Delete
- Solactive has announced the constituent changes for the Global Uranium & Nuclear Components Index. There is only 1 delete with implementation at the close on 31 January.
- As expected, GoviEx Uranium (GXU CN) will be deleted from the index and there will be a bunch of capping changes, especially for non-pure play stocks.
- Estimated one-way turnover is 5.8% resulting in a round-trip trade of US$386m. There are many stocks with multiple days of ADV to trade.
Fast Retailing (9983 JP): Double Capping & The Reverse Funding Trade
- With 3 days left in the review period, Fast Retailing (9983 JP) has a 11.29% weight in the Nikkei 225 (NKY INDEX). That means double capping in March.
- If Fast Retailing (9983 JP) underperforms the other index stocks by 1.8% from now to the close on 31 January, there will only be a single level of capping.
- Double capping will result in big selling on Fast Retailing (9983 JP) and big inflows into the other index constituents. Smaller impact for single level capping.
Japfa (JAP SP): The Santosa Family (Finally) Makes A Move
- Back in March of last year, Bloomberg reported,that Renaldo Santosa and his family, who collectively controlled ~75.5% of agri-play Japfa Ltd (JAP SP), were considering taking Japfa private.
- This was discussed in Japfa (JAP SP): Impressive Gain. But No Firm Offer. Then crickets.
- The family has now pitched an Offer of S$0.62/share, by way of a Scheme, a 34.8% premium to undisturbed. That’s probably enough to get this over the line.
SLB Dev (SLB SP): Ong Family Offer By Way Of A Scheme.
- Singaporean property play SLB Development (SLB SP) has announced an Offer, by way of a Scheme, from Lian Beng (LBG SP)‘s Ong family, at S$0.23/share, a 36.1% premium to undisturbed.
- Lian Beng, which was privatised by the Ong family in 2023 – see Lian Beng: Circ Out. IFA (Rightfully) Says Not Fair – holds 77.6% in SLB.
- This is done. No competing offer will emerge. I don’t think this needs a bump.
Shandong Hi-Speed New Energy (1250 HK)’s Unconditional MGO Now Open
- Back on the 27 December, Shandong Hi-Speed Holdings (412 HK) completed two SPAs, elevating its stake in Shandong Hi-Speed New Energy (1250 HK) to 56.97% from 43.45%, triggering an unconditional MGO.
- The Composite Doc is now out, and the Offer is open for tendering. The close of the Offer is the 18th Feb, 21 days out. Don’t expect an extension.
- The IFA has declared the terms fair & reasonable. Which is probably true.
Venture Global (VG US): Excluded from Global & US Indices Despite $50B Market Cap
- Venture Global (VG US) is forecasted to fail fast-entry to S&P TMI due to insufficient fcap but is expected to be added at the March 2025 review.
- Venture Global (VG US) is expected to be excluded from Global & US indices due to low fcap and public voting rights mainly caused by the company’s unlisted shares.
- The probability of inclusion in Global & US indices increases exponentially with the selling of Class B shares by Venture Global Partners.
Red Hawk (RHK AU): Fortescue’s Off-Market Offer
- Via an off-market offer, Fortescue Metals (FMG AU)is aiming to purchase all shares of iron-ore play Red Hawk Mining (RHK AU) at A$1.05/share, a 28% premium to last close.
- If Fortescue secures at least 75% of Red Hawk’s shares within seven days, the Offer Price increases to A$1.20/share, a 46% premium to last close
- Fortescue’s focus is on Red Hawk’s Blacksmith iron ore project, located ~30 kilometers west of Fortescue’s own Solomon project.
Dada Nexus (DADA US): JD.Com’s US$2/ADS Non-Binding Offer
- On the 27th January, Dada Nexus (DADA US), a Chinese on-demand retail and delivery platform, announced a preliminary non-binding proposal from JD.com (9618 HK).
- JD.com, a 63.2% shareholder, is offering US$0.50/share (US$2.00/ADS), a 42% premium to last close. Should a definitive agreement be inked, this is done.
- DADA has formed a committee to evaluate the proposal. The risk to the trade, as with many US-listed China plays, is one of timing. Trading at a 11.1% gross spread.
Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
Unlock all research summaries