In today’s briefing:
- HKBN (1310 HK): Another Sing Tao Article as Speculation Swirls on MBK’s Loan Notes Conversion
- The Backdrop Behind Today’s Pivot in Samsung’s Playbook
- Fengxiang (9977 HK): Privatisation by PAG?
- Canvest (1381 HK): Precondition Satisfied
- A Potential Family Feud At Dongjin Semichem Post Death of Founder Lee?
- DN Solutions IPO: Index Inclusion Timing Depends on Lock-Up Expiry Schedule
- StubWorld: Matheson Looks Stretched
HKBN (1310 HK): Another Sing Tao Article as Speculation Swirls on MBK’s Loan Notes Conversion
- A new Sing Tao Daily article on HKBN Ltd (1310 HK) claims that China Mobile (941 HK)’s offer is a stalemate, and a potential I Squared offer faces regulatory challenges.
- The article is being unduly alarmist. The concerns raised on the China Mobile offer remain premature, and there remains a medium-to-high probability of a competing offer from I Squared.
- Last Friday, MBK converted its vendor loan notes (VLN) into shares, which could signal that an I Squared competing offer is imminent.
The Backdrop Behind Today’s Pivot in Samsung’s Playbook
- Jay Lee flipping the switch signals Samsung’s pivot—no more playing defense, no more legal jitters. Market’s reading this as full send on the next phase.
- Near-Term, Samsung’s pushing hard—NVIDIA’s HBM qual tests are in focus. With NVIDIA’s event this week, traders are watching for bullish signals after earlier cautious moves.
- The real juice? Samsung might drop a bold value-up play and a no-nonsense shareholder message. The prime launchpad: AGM day, this Wednesday, 19th, 9 AM.
Fengxiang (9977 HK): Privatisation by PAG?
- Shandong Fengxiang (9977 HK) entered a trading halt “pending the release of an announcement pursuant to the Code on Takeovers and Mergers.” PAG, the controlling shareholder, likely aims to privatise Fengxiang.
- The offer will likely be structured as a privatisation by merger by absorption requiring approval by at least 75% of independent H Shareholders (<10% of all independent H Shareholders rejection).
- The presence of several substantial shareholders necessitates a reasonable offer. An offer of HK$1.80-2.00 (a 21%—33% premium to the last close) could win over these shareholders’ backing.
Canvest (1381 HK): Precondition Satisfied
- Grandblue Environment Co A (600323 CH) has satisfied the precondition related to its privatisation offer for Canvest Environmental Protection Group (1381 HK).
- The offer remains attractive despite the re-rating of peers since announcing the deal. The vote risk is low as the two shareholders holding blocking stakes will be supportive.
- This is a done deal. At the last close, the gross/annualised spread for a mid-June payment is 3.8%/13.0%.
A Potential Family Feud At Dongjin Semichem Post Death of Founder Lee?
- After the death of Dongjin Semichem’s founder Lee on 25 February, the company has yet to reveal the details of the succession plan.
- There is a potential for a family feud between the two sons of founder Lee if indeed there was no will directing the late chairman Lee’s ownership of Dongjin Holdings.
- A potential family feud for the control of Dongjin Semichem could lead to a grab for shares by both the family members as well as the general investors.
DN Solutions IPO: Index Inclusion Timing Depends on Lock-Up Expiry Schedule
- DN Solutions (298440 KS) is looking to raise up to KRW 1,573bn (US$1.08bn), valuing the company at KRW 5.66 trillion (US$3.9bn) at the top end of the IPO price range.
- The highest probability of DN Solutions being added to the KOSPI200 Index is at the June 2026 rebalance. The stock needs to move 60% higher to be added in December 2025.
- Inclusion in global indices could commence in August/November and will depend on institutional investor lock-up schedules. Flows are small unless the stock moves higher and is included in bigger indices.
StubWorld: Matheson Looks Stretched
- Jardine Matheson Holdings (JM SP) posted a 11% drop in FY24 underlying profit; but has promptly gained 9% since.
- Preceding my comments on Matheson are the current setup/unwind tables for Asia-Pacific Holdcos.
- These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.
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
Unlock all research summaries