In today’s briefing:
- Doosan Group: Index Implications of the Corporate Restructuring
- Samson Holding (531 HK): Chairman’s Scheme Privatisation at HK$0.48
- Further “SGX Listing & HKEx Withdrawal” Musings
- Medi Assist US$180m Lock-Up Expiry – Multibagger Gains Are Ripe for the Taking
- SSE50 Index Rebalance Preview: Potential Inclusions Outperforming (And How!)
- S&P/ASX Index Rebalance Preview: Potential Changes from Now to September
Doosan Group: Index Implications of the Corporate Restructuring
- The Doosan Group are planning to restructure Doosan Enerbility (034020 KS), Doosan Bobcat Inc (241560 KS) and Doosan Robotics (454910 KS) by reorganizing the business structure to find synergies.
- Doosan Enerbility will spin-off its stake in Doosan Bobcat and merge it with Doosan Robotics. Doosan Robotics will then look to acquire full control of Doosan Bobcat via a share swap.
- There could be an adhoc inclusion to the KOSPI200 INDEX at the end of October and global passives will buy Doosan Robotics (454910 KS) at the time of merger completion.
Samson Holding (531 HK): Chairman’s Scheme Privatisation at HK$0.48
- Samson Holding (531 HK) disclosed a Cayman scheme privatisation offer from Mr Samuel Kuo (Chairman) at HK$0.48 per share, a 77.8% and 50.0% premium to undisturbed and last close price, respectively.
- The key condition will be approval by at least 75% of disinterested shareholders (<10% of all disinterested shareholders rejection). The offer price is final.
- The attractive takeover premium, lack of shareholders holding a blocking stake, and low AGM minority participation rate point to a done deal. However, this is a small cap illiquid stock.
Further “SGX Listing & HKEx Withdrawal” Musings
- Back on the 18th June, personal computer parts and accessories play PC Partner (1263 HK) announced a SGX listing was under consideration; and a possible withdrawal of the HKEx listing.
- This development was discussed in PC Partner (1263 HK) Muses SGX Listing & HKEx Withdrawal. PC Partner subsequently announced a privatisation would not accompany any proposed withdrawal (should it happens).
- My recent discussions with SFC confirms this is possible. And there was a recent precedent. But there may be caveats.
Medi Assist US$180m Lock-Up Expiry – Multibagger Gains Are Ripe for the Taking
- Medi Assist Healthcare Services (0886371D IN) was listed on 23rd Jan 2024 after raising US$140m. The IPO had been 100% secondary, with the promoters and pre-IPO investors trimming their stakes.
- Medi Assist Healthcare Services (Medi Assist) provides third party administration services to insurance companies via its subsidiaries.
- Coming up for six-month lockup expiry are the firm’s pre-IPO shareholders and a portion of the promoters’ stakes.
SSE50 Index Rebalance Preview: Potential Inclusions Outperforming (And How!)
- With 70% of the review period complete, 4 non-constituents are in inclusion zone and 5 constituents are in deletion zone.
- We estimate one-way turnover of 6.5% at the December rebalance leading to a one-way trade of CNY 8.8bn (US$1.2bn). Index arb balances could increase the impact on the stocks.
- The potential adds have outperformed the potential deletes. With multiple days ADV to trade on the changes and the recent short selling clampdown, there could be further outperformance.
S&P/ASX Index Rebalance Preview: Potential Changes from Now to September
- With nearly 80% of the review period complete, there could be 28 adds/deletes across the S&P/ASX family of indices in September.
- There is a lot of stocks for passive trackers to trade on the index changes with the largest impacts on the potential changes to the S&P/ASX 200 (AS51 INDEX).
- The potential adds have outperformed the potential deletions by a LOT over the last few months and continued positioning could lead to further gains.
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