In today’s briefing:
- End of Mandatory Lock-Up Periods for 49 Companies in Korea in September 2023
- MVIS Australia A-REITs Index Rebalance Preview: Abacus Group Could Be Deleted
- Unveiling the Potential of Korea Zinc’s Emerging Proxy Battle
- MVIS Australia Equal Weight Index Rebalance Preview: Potential Deletes & Capping Increase Turnover
- (Mostly) Asia M&A, Aug 2023: Celltrion Inc/Healthcare, Itochu Techno, UMW, Boustead, SK Rent
- Georg Fischer/Uponor: Extension of Offer Period
End of Mandatory Lock-Up Periods for 49 Companies in Korea in September 2023
- We discuss the end of the mandatory lock-up periods for 49 stocks in Korea in September 2023, among which 7 are in KOSPI and 42 are in KOSDAQ.
- These 49 stocks on average could be subject to further selling pressures in September and could underperform relative to the market.
- Among these 49 stocks, top five market cap stocks include Kakao Games (293490 KS), SK Oceanplant (100090 KS), Korea Zinc (010130 KS), Fadu (440110 KS), and Vaxcell-Bio Therapeutics (323990 KS).
MVIS Australia A-REITs Index Rebalance Preview: Abacus Group Could Be Deleted
- The review period for the September rebalance ended yesterday. There could be one deletion from the index and a bunch of capping changes.
- The index changes will lead to a one-way turnover of 3.4% resulting in a one-way trade of A$21m. There are two stocks with over A$5m to trade.
- Short interest has increased on a few REITs recently while decreasing on most of the other names.
Unveiling the Potential of Korea Zinc’s Emerging Proxy Battle
- Korea’s local market is perceiving the present HMG investment as a crucial indicator, signaling the initiation of an intense proxy battle for Korea Zinc.
- Given the relatively constrained nature of the neutral minority stakes, falling below 30%, there is considerable attention on the potential for a immediate-term share buying race.
- This is expected to trigger momentum trading flows directed at Korea Zinc. Such a scenario might lead the stock price to venture into an overshooting zone.
MVIS Australia Equal Weight Index Rebalance Preview: Potential Deletes & Capping Increase Turnover
- JB Hi-Fi Ltd (JBH AU) and Charter Hall (CHC AU) could be deleted as the lowest ranked current index constituents.
- There are three other stocks that are close to the deletion threshold and a change in the free float could result in the stocks being deleted.
- Short interest has been increasing on JB Hi-Fi Ltd (JBH AU), Charter Hall (CHC AU) and Lendlease Group (LLC AU) and could be partially driven by potential index deletions.
(Mostly) Asia M&A, Aug 2023: Celltrion Inc/Healthcare, Itochu Techno, UMW, Boustead, SK Rent
- For the month of August 2023, 11 new deals (firm and non-binding) were discussed on Smartkarma with an overall announced deal size of ~US$29bn.
- The average premium for the new deals announced (or first discussed) in August was 25%. The average YTD is 34%.
- This compares to the average premium for all deals in 2022 (106 deals), 2021 (165 deals), 2020 (158 deals), and 2019 (145 deals) of 41%, 33%, 31%, and 31% respectively.
Georg Fischer/Uponor: Extension of Offer Period
- Georg Fischer AG (FI/N SW) has so far purchased a 9.5% stake of Uponor OYJ (UNR1V FH) in the market. Georg Fischer’s shareholding plus irrevocable undertakings represent in total 46.4% (30 August).
- There has been no disclosure about the shares tendered so far. Georg Fischer has extended the offer period until 31 October, while waiting to receive clearance from the European Commission.
- Gross spread is 0.03%, so probably it is not worth becoming involved. The reason for this low spread is the acquisition of shares in the market by Georg Fischer.
💡 Before it’s here, it’s on Smartkarma
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