In today’s briefing:
- IJTT (7315) – Last Trading Day for Still Truly Offensive Tender Offer
- Taisho Pharmaceutical (4581 JP): Calm as Offer Heads for the 15 January Close
- Quiddity Leaderboard CSI 300/500 Jun 24: Some Changes in Rankings; US$2.3bn One-Way
- VinFast’s Global Expansion As Shares Stall
- SENSEX Index Rebalance Preview: Likely Wipro Deletion Opens an Index Spot
- An Early Look at the Potential KOSDAQ150 Rebalance Candidates in June 2024
IJTT (7315) – Last Trading Day for Still Truly Offensive Tender Offer
- In IJTT (7315 JP) – A Truly Offensive Takeover Price and Process To Buy Out Minorities at 0.46x Book I laid it out like it was. It needed a bump.
- It got a bump (IJTT (7315 JP) – Truly Offensive Takeover Price Gets Bumped, Offensively) to ¥850/share. From 0.46x PBR it got bumped to 0.48x PBR. For a cash-rich company.
- Taking out net cash and securities, paying off deferred tax assets and UPBOs the deal is at 0.41x operating asset book for minorities. Still offensive. Beyond negligent.
Taisho Pharmaceutical (4581 JP): Calm as Offer Heads for the 15 January Close
- Taisho Pharmaceutical Holdin (4581 JP)’s MBO JPY8,620 offer closes on 15 January. Since announcing the offer, the shares have traded above terms for 21 out of the 30 trading days.
- Japan Catalyst has called the offer’s P/B of 0.85x too low. While shares trading above terms does not guarantee that the tender fails, it does increase the risk of failure.
- The offeror has no compelling reason to bump as other activists have not publicly supported Japan Catalyst, the high 55.5% premium to undisturbed price and an achievable minority acceptance rate.
Quiddity Leaderboard CSI 300/500 Jun 24: Some Changes in Rankings; US$2.3bn One-Way
- CSI 300 represents the 300 largest stocks by market capitalization and liquidity from the entire universe of Shanghai and Shenzhen Stock Exchanges. CSI 500 represents the next largest 500 names.
- In this insight, we take a look at the potential ADDs/DELs for the CSI 300 and CSI 500 rebalance in June 2024.
- Since my December 2023 insight, a couple of names have left the CSI 300 Expected ADDs basket and have been replaced by two other names.
VinFast’s Global Expansion As Shares Stall
- After de-SPACing last August, shares in VinFast (VFS US), the EV arm of Vietnamese conglomerate Vingroup Jsc (VIC VN), went orbital, as discussed in Vingroup: VinFast’s Valuation Makes No Sense
- VinFast cratered shortly thereafter. But still trades at a hefty ~25x P/S, well above industry peers.
- Last Friday VinFast announced it was replacing both its CEO and CFO. Not a great look five months after IPOing. Even less attractive is the incoming CEO is VinGroup’s founder.
SENSEX Index Rebalance Preview: Likely Wipro Deletion Opens an Index Spot
- Over a third of the way through the review period of the June rebalance, we see one potential index change with Wipro Ltd (WPRO IN) in deletion zone.
- There are a bunch of stocks that could be added to the index as a replacement and price changes over the rest of the review period are important.
- Passive trackers will need to trade over 1x ADV and over 7x of delivery volume on the index changes, so there will be decent impact on the stocks.
An Early Look at the Potential KOSDAQ150 Rebalance Candidates in June 2024
- In this insight, we discuss the potential KOSDAQ150 rebalance candidates in June 2024.
- The following companies are likely candidates to be included in KOSDAQ150 rebalance in June 2024, including LS Materials, Gigavis, and Cafe24 Corp.
- We also provide a list of 10 companies that are potential exclusion candidates from KOSDAQ150 rebalance in June 2024.
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