In today’s briefing:
- EVOC’s H Share Class Meeting on 19 October
- Tassal Scheme Meeting on 3 November
- BREAKING! Dog Loses To Mangalore – Idemitsu Kosan Does Its Deal for Toa Oil (5008)
- Last Week in Event SPACE: Swire Pacific, SATS/WFS, Hitachi Metal, Jinke Smart, Porsche
- Toyo Construction (1890 JP) – There’s Nuance in Them Thar Press Releases
- Hong Kong CEO & Director Dealings: 30th Sept – Swire Pac’s Bs, Joinn Laboratories, Techtronic
- Index Rebalance & ETF Flow Recap: S&P/ASX, China A50, SET50, Bilibili, Leapmotor, Onewo, CALB
- (Mostly) Asia-Pac Weekly Risk Arb Wrap: Jinke Smart, Pine Care, MACA, Hitachi Metals
EVOC’s H Share Class Meeting on 19 October
- EVOC Intelligent Technology Company Limited H (2308 HK)‘s H Shareholders’ class meeting is scheduled for 19 October. The IFA considers the offer to be fair and reasonable.
- The key conditions are approval by at least 75% of independent H Shareholders (<10% of all independent H Shareholders’ rejection). There is no minimum acceptance condition.
- The offer is attractive and should gain approval. At last close and for a 7 November payment, the gross and annualised spread to the offer is 2.9% and 26.0%, respectively.
Tassal Scheme Meeting on 3 November
- Tassal (TGR AU)‘s scheme meeting is scheduled for 3 November. The IE considers the A$5.23 per share offer fair and reasonable.
- The key condition is approval from shareholders – headcount test and approval by at least 75% of the votes cast on the scheme resolution. Cooke has received FIRB approval.
- We continue to think that offer is attractive. At the last close price and for the 21 November implementation date, the gross and annualised spread is 1.2% and 8.8%, respectively.
BREAKING! Dog Loses To Mangalore – Idemitsu Kosan Does Its Deal for Toa Oil (5008)
- Friday post-close, Idemitsu Kosan (5019 JP) announced a deal to buy out subsidiary Toa Oil Co Ltd (5008 JP). Cornwall has agreed to tender, so it’s a done deal.
- This is at ¥3,150/share, which is nearly 30% higher than the bid 21 months ago, where Cornwall bought enough to block, but it is a disappointing outcome for governance.
- A clearly problematic tolling agreement with the parent, and what could be ¥100bn of excess land value are ignored. Minority investors get hosed. One of the problems of minority investments.
Last Week in Event SPACE: Swire Pacific, SATS/WFS, Hitachi Metal, Jinke Smart, Porsche
- Historically, when Swire (B) (87 HK) / Swire (A) (19 HK) gets more than 6% from 3mo Avg VWAP Ratio, there is statistically significant reversion. We are now at 6.8%.
- The SATS (SATS SP) / WFS transaction appears all stitched up with major shareholder Temasek backing the deal. The acquisition is expected to close in 1Q23, subject to regulatory clearance.
- We had the heads up days (or a week plus) ago, and now it is official. Bain has now launched its Tender Offer for Hitachi Metals (5486 JP) at ¥2,181/share.
Toyo Construction (1890 JP) – There’s Nuance in Them Thar Press Releases
- On Friday, post-close, there was a flurry of excitement as YFO put out a press release amending the start date of the planned Tender Offer to early November.
- Not long after, there was another release by Toyo Construction (1890 JP) itself.
- You have to read both for what they are. And as they say…. Get your programs here!
Hong Kong CEO & Director Dealings: 30th Sept – Swire Pac’s Bs, Joinn Laboratories, Techtronic
- The data in this insight is collated from the “shareholding disclosure” link on the HKEx website.
- Often there is a corresponding HKEx announcement on the increase – or decrease – in the shareholding by directors. However, such disclosures are by no means an absolute.
- These insights may also flag those companies where shares have been pledged. Stocks mentioned include Swire Pacific (B) (87 HK), Joinn Laboratories (H) (6127 HK), and Techtronic Industries (669 HK).
Index Rebalance & ETF Flow Recap: S&P/ASX, China A50, SET50, Bilibili, Leapmotor, Onewo, CALB
- Last week we had the implementation of the first two tranches of the Nikkei 225 (NKY INDEX) rebalance with the third tranche to be implemented at the close on Monday.
- Thursday saw the NIFTY indices implementation while Friday marked the end of the review period for the December rebalance of the Hang Seng family of indices.
- There were large inflows to China, Taiwan, Korea and Hong Kong ETFs during the week while there were some outflows from Japan.
(Mostly) Asia-Pac Weekly Risk Arb Wrap: Jinke Smart, Pine Care, MACA, Hitachi Metals
- There are 49 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
- Three new deals were discussed this week: Boyu’s Offer for Jinke Smart Services (9666 HK); Chinachems’s Offer for Pine Care (1989 HK), & Accenture Japan bid for ALBERT (3906 JP).
- Key updates took place for Hitachi Metals (5486 JP) and MACA Ltd (MLD AU) .
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