In today’s briefing:
- Insiders Selling at Ecopro BM and Kum Yang
- Offshore China ETFs Rebalance Preview: Two Changes in September
- Superloop/Symbio’s Indicative Merger
- Nice Information Service: KRX Approves Switching Its Listing from KOSDAQ to KOSPI
- Symbio (SYM AU): Superloop’s Indicative Offer
- Selected European HoldCos and DLC: July’23 Report
Insiders Selling at Ecopro BM and Kum Yang
- Ecopro BM (247540 KS) and Kum Yang (001570 KS)’s shares are down 2.5% and 4.5%, respectively today, driven by news of insiders at these companies selling their shares.
- It is estimated that the total amount of Ecopro BM shares sold by insiders and related parties was about 20 billion won in July by more than 12 insiders/related parties.
- We are increasingly concerned about insiders selling at Ecopro BM and Kum Yang. Coupled with lofty valuations, we think there is a higher probability of downside risk on these names.
Offshore China ETFs Rebalance Preview: Two Changes in September
- As of 1 August, there could be two changes for the iShares A50 China (2823 HK)/ CSOP A50 (2822 HK) in September.
- There should be over 1x ADV to buy on NARI Technology Co Ltd A (600406 CH) and over 1x ADV to sell on Shaanxi Coal Industry (601225 CH).
- There are a few stocks bunched around similar market caps among the potential adds and there could be changes to the list over the next few weeks.
Superloop/Symbio’s Indicative Merger
- Broadband provider Superloop Ltd (SLC AU) has made an indicative Offer, by way of a Scheme, for cloud communication software outfit Symbio Holdings (SYM AU).
- Under the proposal, Symbio shareholders would receive A$1.425 (cash) and 2.14 new Superloop shares for each Symbio share held, for an implied price of A$2.85/share, a 20% premium to undisturbed.
- A four-week period of reciprocal exclusivity has been agreed to further progress the proposal.
Nice Information Service: KRX Approves Switching Its Listing from KOSDAQ to KOSPI
- On 1 August, the Korea Exchange approved the transfer of listing of Nice Information Service Co (030190 KS) from KOSDAQ to KOSPI.
- Nice Information Service will also be deleted from KOSDAQ 150 index and it will be replaced by Hydro Lithium (101670 KS).
- The recent share price decline in Nice Info Service has resulted in more attractive valuations for the company.
Symbio (SYM AU): Superloop’s Indicative Offer
- Symbio Holdings (SYM AU) has disclosed a non-binding indicative proposal from Superloop Ltd (SLC AU) at A$1.425 cash per share and 2.14 SLC shares per SYM share.
- The implied offer price of A$2.85 per share is a 19.7% premium to the undisturbed price of A$2.38 per share. A 4-week reciprocal exclusivity period starts on 1 August.
- The offer is not close to being a knockout bid. Superloop states that it will progress the transaction on “a disciplined basis“, suggesting some risk towards a binding proposal.
Selected European HoldCos and DLC: July’23 Report
- Discounts to NAV of covered holdcos have generally widened during July. Discounts to NAV: C.F.Alba, 47.5%; GBL, 39.1%; Heineken Holding, 16.4%; Industrivärden C, 6.6%; Investor B, 15%; Porsche Automobile Holding, 43.8%.
- The spread of Rio Tinto DLC tightened to 19%. Rio Tinto is a candidate for an Australian top hat structure.
- Interesting situations: Heineken Holding/Heineken, Porsche SE/vs. listed assets and Rio DLC.
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