In today’s briefing:
- EOFlow: Insulet’s Injunction Doesn’t Thwart Medtronic’s Acquisition
- Aeon (8267) Partial Tender at ¥1610 for Inageya (8182) Aiming for Takeover Next Year
- Long Short Flow Trading Opportunity: TIGER Semicon Top 10 ETF Rebalancing Next Friday
- Inageya (8182 JP): Aeon’s JPY1,610 Partial Tender Offer
- EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades-Good News Is Good News
EOFlow: Insulet’s Injunction Doesn’t Thwart Medtronic’s Acquisition
- After Insulet Corp (PODD US) lodged a lawsuit against EOFlow (294090 KS), Flex, inter alia, on the 3rd August, the judge has thrice extended the temporary restraining order.
- But the big (ger) news is that a preliminary injunction comes into force today. Shares are down 2.5% as I type.
- This latest development should have been expected. And put simply: a proposed preliminary injunction doesn’t prevent Medtronic Plc (MDT US) from acquiring EOFlow.
Aeon (8267) Partial Tender at ¥1610 for Inageya (8182) Aiming for Takeover Next Year
- Aeon Co Ltd (8267 JP) and Inageya Co Ltd (8182 JP) agreed in late April to prepare a plan so Aeon would buy 51% this year.
- They would combine Inageya with 53+%-owned United Super Markets (3222 JP) aiming for a ¥1trln sales supermarket chain in Kanto. That is due end- calendar 2024.
- There is a partial offer to buy 33+% of Inageya at a small premium, and inadequate price before merging next year. Cross-holders determine pro-ration.
Long Short Flow Trading Opportunity: TIGER Semicon Top 10 ETF Rebalancing Next Friday
- LX Semicon and Tokai Carbon Korea will be excluded, and these two positions will be filled by Eo Technics and either HPSP or ISC Co Ltd.
- The effective date is October 16th, and the rebalancing trading by the TIGER ETF occurs towards the closing (likely to start around 2 p.m.) on Friday, October 13th.
- The practical setup would entail an EO Technics-TCK Long Short pair. For a more aggressive strategy, we could explore the inclusion of HPSP in this setup.
Inageya (8182 JP): Aeon’s JPY1,610 Partial Tender Offer
- Aeon Co Ltd (8267 JP) has announced a partial tender offer for Inageya Co Ltd (8182 JP) to make it a consolidated subsidiary. Aeon flagged this intention on 25 April.
- The tender offer is for a maximum of 15.7 million shares (33.78% ownership ratio) at JPY1,610, a 23.2% premium to the undisturbed price. There is no minimum acceptance condition.
- The offer price is reasonable. Longer-term, Aeon aims to make Inageya a wholly-owned subsidiary of United Super Markets (3222 JP) by November 2024.
EQD | Volatility Update: Weekly Review of Vol Changes and Best Trades-Good News Is Good News
- Weekly summary of vol changes and moves across Global Markets
- Analysing ATM volatility and skew changes over the last 5 days
- We suggest a few trades to take advantage of the implied vol surfaces
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