In today’s briefing:
- End of Mandatory Lock-Up Periods for 41 Companies in Korea in July 2023
- Quiddity Leaderboard JPX-Nikkei 400: Final Predictions for August 2023
- Take Private Looming
- Axel Johnson/Dustin Group AB: Mandatory Offer
End of Mandatory Lock-Up Periods for 41 Companies in Korea in July 2023
- We discuss the end of the mandatory lock-up periods for 41 stocks in Korea in July 2023, among which 6 are in KOSPI and 35 are in KOSDAQ.
- These 41 stocks on average could be subject to further selling pressures in June and could underperform relative to the market.
- Among these 41 stocks, the top five market cap stocks include Lunit, Sungeel Hitech, KG Mobility, Enchem, and E&D Co.
Quiddity Leaderboard JPX-Nikkei 400: Final Predictions for August 2023
- The JPX-Nikkei 400 is composed of common stocks listed on the Tokyo Stock Exchange. It is a free-float-adjusted (capped) market-value-weighted index composed of 400 constituents.
- A periodic review is conducted by the Index providers, the JPX Group and Nikkei Inc, in August every year. We look at the potential forward inclusions and removals every month.
- Below is a look at potential Inclusions and Removals for the JPX-Nikkei 400 Rebalance to be announced in early August 2023 based on trading data as of end-June 2023.
Take Private Looming
- On 28 June, after market close Fomento De Construcciones Y Co (FCC SM) announced the repurchase and redemption of 7% of its shares at €12.5/share (38% premium, €5.4 billion implied market cap).
- According to my calculations, Carlos Slim will hold, directly and indirectly, c. 88.2% of the share capital post repurchase. That, to me, heralds a delisting offer further down the road.
- The offer represents 7.1x EV/Fwd EBITDA, 8.9x Fwd P/E (on IBES forecasts). Median TP is €14.7. Gross spread is 5.3% (plus the €0.5 dividend). It seems a safe long.
Axel Johnson/Dustin Group AB: Mandatory Offer
- On 27 June, Axel Johnson said it had crossed the 30% threshold and would launch a mandatory offer for all shares of Dustin Group AB (DUST SS) at SEK 28.5/share
- Axel Johnson doesn’t seem particularly interested in completing a takeover, rather being able to increase its stake after offer completion. The offer document isn’t even available in English.
- The offer represents -4.2% to 1-month VWAP, 0.31x EV/Fwd sales (vs. 0.66x average since IPO). I wouldn’t get involved unless the share price drops below SEK 28.5.
💡 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
