In today’s briefing:
- BPlant/KLK: This Is Getting (Even More) Political
- Boustead Plantations (BPLANT MK): A Transaction Mired in Political Debate
- Yuanta/P-Shares Taiwan Dividend Plus ETF: 20% One-Way Turnover & US$2.72bn Trade
- Alpha Generation Through Share Buybacks in Korea: August & September 2023
- Hollysys (HOLI US): Board Starts a Formal Sale Process
- Symbio: Aussie Broadband Lobs Competing NBIO
- Quiddity A/H Premium Tracker (To Sep28): Hs Suffer Vs As Despite Inflows
- EQD | S&P/ASX200 Index Stuck, But Could Bounce Soon
BPlant/KLK: This Is Getting (Even More) Political
- On the 24 August, Kuala Lumpur Kepong (KLK MK) entered an agreement with Boustead Holdings (BHB), Boustead Plantations (BPLANT MK)‘s largest shareholder, to acquire a 33% plus 1 share stake.
- Upon the completion of the agreement, KLK – together with BHB and LTAT – would make a Mandatory Offer for BPlant. The Offer Price would be RM1.55/share, a lifetime high
- It all looked pretty straightforward. However the BHB/LTAT agreement has twice been delayed. This may still get done. But there remain a number of political kinks to be ironed out.
Boustead Plantations (BPLANT MK): A Transaction Mired in Political Debate
- Boustead Plantations (BPLANT MK) shares are down 16%, resulting in proprietary day trading and intraday short selling being suspended. The transaction is mired in political debate.
- The bull case is that Kuala Lumpur Kepong (KLK MK) continues on-market purchases and the opposition will compromise, paving the way for deal completion. Timing is the key risk.
- The bear case is a deal break. The downside is limited as the government will need another buyer, the shares trade below the undisturbed price, and the undemanding valuation.
Yuanta/P-Shares Taiwan Dividend Plus ETF: 20% One-Way Turnover & US$2.72bn Trade
- Using data from the close on 28 September, there could be 6 adds and 5 deletes to the Yuanta/P-Shares Taiwan Dividend Plus ETF in December.
- There will also be capping and funding flows that will lead to a one-way turnover of 19.8% and a one-way trade of US$1.36bn.
- There are 15 stocks with at least 3 days ADV to trade from passive trackers and another 10 stocks that have at least 1-day ADV to trade.
Alpha Generation Through Share Buybacks in Korea: August & September 2023
- In this insight, we discuss the alpha generation through companies that announced share buybacks in Korea in August and September 2023.
- We provide a list of 18 stocks in the Korean stock market that have announced share buyback programs in August and September 2023.
- The top three market cap stocks that have announced share repurchases include Celltrion Inc (068270 KS), Celltrion Healthcare (091990 KS), and KT&G Corporation (033780 KS).
Hollysys (HOLI US): Board Starts a Formal Sale Process
- The Hollysys Automation Technologies (HOLI US) Board succumbs to shareholder pressure by announcing the formation of a special committee to conduct a formal sale process.
- Hollysys has received non-binding proposals from six parties since December 2020. The most recent is a non-binding proposal from the Recco consortium at US$25.00 per share.
- The Board’s change of heart should encourage previous bidders to re-engage. Recco’s offer, while attractive, is not a knockout bid, suggesting a possible bidding war.
Symbio: Aussie Broadband Lobs Competing NBIO
- On the 22 September, Symbio Holdings (SYM AU) received a best and final NBIO from Superloop Ltd (SLC AU) : A$1.425 cash and 2.14 Superloop shares for each Symbio share.
- Those indicative terms backed out an implied price of A$2.85/share, or a 20% premium to undisturbed. Now Aussie Broadband (ABB AU) has snuck in with a superior cash/scrip Offer.
- The competing Offer’s implied consideration of A$3.151/share boasts a larger cash component vs. Superloop. Symbio’s board is supportive if terms are firmed. Superloop’s Offer has now lapsed.
Quiddity A/H Premium Tracker (To Sep28): Hs Suffer Vs As Despite Inflows
- The Brand-Spanking New (8 weeks old) A-H Monitor has tables, charts, measures galore to track A/H premium positioning, southbound and northbound positioning in pairs over time, etc.
- We used to do it. We brought it back better, with lots of cool interactive tables, and charts, heat maps, and comparative data. And 47 Trade Recommendations.
- The last 7 weeks (since the start of the new Trcker and Portfolio 8 weeks ago) have seen net portfolio performance of +0.50%, +1.35%, +0.14%, +0.47%, +0.15%, +0.12%.
EQD | S&P/ASX200 Index Stuck, But Could Bounce Soon
- The S&P/ASX 200 INDEX is trading below the Q3 WEEKLY support at 7072 (OVERSOLD). It closed down 2 weeks in a row (CC=-2) and this week is also down (CC=-3).
- As previously discussed the index is stuck in a range since August 2021, but from a short-term tactical viewpoint it could bounce soon, still remaining in range.
- Current support range is 7072-6900, there is a good chance to see a bounce from this area within 2 weeks.
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