In today’s briefing:
- Fast Retailing (9983) – Now At Double Downweight Levels
- Merger Arb Mondays (18 Mar) – Roland DG, JSR, YSK, CIMC Vehicles, Alumina, QV Equities, Qantm
- Aida Engineering (6118) Buyback – Not Big Enough, But Not Small; They Gotta Shrink E.
- Liquid Universe of European Ordinary and Preferred Shares: March‘24 Report
Fast Retailing (9983) – Now At Double Downweight Levels
- Fast Retailing (9983 JP) is the largest weight in the Nikkei 225. On Friday, it closed at 11.36% of the Nikkei 225, putting it well above the 10% cap level.
- If the stock is above 10% on a pro-forma basis on the base date of 31 July 2024, it will get a capping coefficient. 2.8mm shares (US$2.5bn) to sell.
- At Friday’s close, we were borderline above a double-downweight trigger. At Monday’s open, just below. 30mins later? Back well above. Lots of interesting issues and nuances here for a short.
Merger Arb Mondays (18 Mar) – Roland DG, JSR, YSK, CIMC Vehicles, Alumina, QV Equities, Qantm
- We summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
- Highest spreads: APM Human Services Internation (APM AU), Qantm Intellectual Property (QIP AU), Genex Power Ltd (GNX AU), Probiotec Ltd (PBP AU), Alumina Ltd (AWC AU), Silver Lake.
- Lowest spreads: Roland DG Corp (6789 JP), Tietto Minerals Ltd (TIE AU), CPMC Holdings (906 HK), Pact Group Holdings (PGH AU), Vinda International (3331 HK), Snow Peak Inc (7816 JP).
Aida Engineering (6118) Buyback – Not Big Enough, But Not Small; They Gotta Shrink E.
- Late last week, machine tool and press maker Aida Engineering (6118 JP) made an announcement of a share buyback. Up to 2.3mm shs (3.59%) spending up to ¥2bn.
- The company has filed a policy for “Action to Implement Management That is Conscious of Cost of Capital and Stock Price” in its most recent CorpGov report available (J/E) here.
- It will be a little smaller than that, but it is worth taking a closer look at the details, etc.
Liquid Universe of European Ordinary and Preferred Shares: March‘24 Report
- Since mid-February, spreads have not followed a clear pattern across our European liquid universe of ordinary and preferred shares (9 have tightened, 9 widened, 1 remained at same level).
- Recommended trades long preferred / short ordinary shares: Danieli, Grifols, Media-for-Europe, Sixt.
- Recommended trades long ordinary / short preferred shares: Fuchs, Henkel, SSAB Svenska Stal, Roche.
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