In today’s briefing:
- Chagee Holdings (CHA US) IPO: Global Index Inclusion Timeline
- After Squaring Away Japfa, The Santosa Family Looks To PT Japfa
- [Japan Activism] – Strategic Capital Shareholder Proposals to WAKITA (8125) And Their Response
- StubWorld: Swire Is “Rich” To Cathay; And Cathay “Cheap” To Air China
- Canvest (1381 HK): 12th May Vote On Grandblue’s Offer
- Naturgy’s Tender Offer: Exploring Spanish ‘Odd-Lot’ Priority and Potential €500 Upside for Shareholders
- Liquid Universe of European Ordinary and Preferred Shares: April ’25 Report
Chagee Holdings (CHA US) IPO: Global Index Inclusion Timeline
- Chagee Holdings (CHA US) is looking to raise up to US$473m in its IPO, valuing the company at up to US$5.2bn. The offering is expected to price today, list tomorrow.
- Media reports indicate that cornerstone investors have indicated demand for US$205m of the offering. There is no mention of a lock-up on those investors yet.
- The stock could be added in one global index in August (with a higher probability of inclusion in November), while inclusion in the other global index is likely in December.
After Squaring Away Japfa, The Santosa Family Looks To PT Japfa
- On the 24th January, Renaldo Santosa and his family, who controlled ~75.5% of agri-play Japfa Ltd (JAP SP), pitched a Scheme Offer at S$0.62/share, a 34.8% premium to undisturbed.
- Yesterday (15th April), disinterested shareholders overwhelmingly (in terms of shares) backed the Scheme. The last day of trading is around the 9th May, and payment around the 30th May.
- The question now is whether the family now seeks to take 55.4%-held Japfa Comfeed Indonesia (JPFA IJ) private.
[Japan Activism] – Strategic Capital Shareholder Proposals to WAKITA (8125) And Their Response
- Tsuyoshi Maruki’s Strategic Capital has gone after a number of cash-rich companies in the past. This is Year 5 going after Wakita & Co Ltd (8125 JP).
- Wakita is cash-rich, and has been for years, but it is also asset-rich. The former CEO, after he retired, decided he wanted to play in real estate.
- At the end of last month, Strategic Capital made proposals (English, Japanese) to Wakita. Again. Today, the company responded (only in Japanese). Time for more.
StubWorld: Swire Is “Rich” To Cathay; And Cathay “Cheap” To Air China
- Swire Pacific (A) (19 HK) is coming up “rich” on my monitor vs. Cathay Pacific Airways (293 HK); and Cathay “cheap” to Air China Ltd (H) (753 HK).
- Preceding my comments on Swire and Cathay are the current setup/unwind tables for Asia-Pacific Holdcos.
- These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.
Canvest (1381 HK): 12th May Vote On Grandblue’s Offer
- On the 22 July 2024, waste-to-energy play Canvest Environmental (1381 HK)announced a pre-conditional Offer from Grandblue Environment (600323 CH) at $4.90/share (best & final), by way of a Scheme.
- On the 17th March 2025, all pre-conditions were (finally) satisfied.
- The Scheme Doc is now out, with a Court Meeting on the 12th May, with payment on or before the 10th June. The IFA (Somerley) says “fair & reasonable“.
Naturgy’s Tender Offer: Exploring Spanish ‘Odd-Lot’ Priority and Potential €500 Upside for Shareholders
- Naturgy plans to repurchase 9% of shares at €26.5/share, with a potential €1.5/share profit opportunity.
- Spanish tender law Article 38.1 allows a linear distribution of 25% of shares among tendering shareholders.
- Previous similar tenders by Abertis and Duro Felguera saw priority allocations of 660 and 683 shares, respectively.
Liquid Universe of European Ordinary and Preferred Shares: April ’25 Report
- Since mid-March, amid sessions of significant volatility, share-price spreads have generally tightened across the European liquid universe of ordinary and preferred shares, with 10 tightening and 9 widening.
- The discount of Grifols B has widened although Brookfield is again knocking at the door; Handelsbanken B shares trade at 48% premium to A shares.
- Recommended trades long preferred/short ords: Atlas Copco, Grifols. Recommended trades long ordinary / short preferred shares: Henkel, SSAB Svenska Stal.
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