In today’s briefing:
- Itoen Pref (25935 JP) – Big Discount, Big Buyback, No Big Governance Change
- Sapporo Holdings: Activist Investor 3D Investment Partners Assumes Majority Ownership
- GAPack (468 HK): Unpacking XJF’s Move To Send The Board Packing
- SET50 Index Rebalance Preview: KCE Could Replace TIDLOR
- (Mostly) Asia M&A, Nov 2023: Taisho Pharma, CIMC Vehicle, CMIC, Japan Best Rescue, Shidax
Itoen Pref (25935 JP) – Big Discount, Big Buyback, No Big Governance Change
- This is always a tough subject, but every now and then I throw myself on the mercy of the ho-humming crowd and write about the Ito En Prefs (25935 JP).
- No strong catalyst. Limited capacity for strongly better governance. Even less apparent corporate interest in good governance.
- But we have a mini-catalyst, and it has been a while, and I think there IS a good way to think about this stock, so here’s another crack at it.
Sapporo Holdings: Activist Investor 3D Investment Partners Assumes Majority Ownership
- Last week, activist investor 3D Investment Partners raised its stake in Sapporo Holdings (2501 JP) by an additional 13%, cementing its position as the majority shareholder in the business.
- This suggests the activist investor is optimistic about successfully advancing their proposals.
- If investment properties are sold or spun off, and Alcoholic Beverages and Food & Soft Drinks undergo the suggested turnaround, we anticipate an additional 80-100% upside in the near term.
GAPack (468 HK): Unpacking XJF’s Move To Send The Board Packing
- Back on the 27 January 2023, Jardine Matheson (JM SP) entered an agreement with Shandong Xinjufeng (301296 CH) (XJF) to sell its 28.22% stake in GAPack (468 HK).
- That sale completed in September. Last week, XJF requisitioned an EGM to consider appointing five new (& friendly) directors, all-but taking control of the board.
- CEO and founder Jeff Bi holds 9.65%. The question is: what are his options?
SET50 Index Rebalance Preview: KCE Could Replace TIDLOR
- With the review period complete, KCE Electronics PCL (KCE TB) should replace Ngern Tid Lor (TIDLOR TB) in the SET50 INDEX at the December rebalance.
- Liquidity is poor in Intouch Holdings (INTUCH TB) and Thai Life Insurance (TLI TB) but the stocks should be maintained in the index.
- Passive trackers will need to buy 0.9x ADV (1.2% of float) of KCE Electronics PCL (KCE TB) and sell 0.8x ADV (1.6% of float) of Ngern Tid Lor (TIDLOR TB).
(Mostly) Asia M&A, Nov 2023: Taisho Pharma, CIMC Vehicle, CMIC, Japan Best Rescue, Shidax
- For the month of November 2023, 16 new deals (firm and non-binding) were discussed on Smartkarma with an overall announced deal size of ~US$13bn.
- The average premium for the new deals announced (or first discussed) in November was 41%. The average YTD is 38% (97 deals).
- This compares to the average premium for all deals in 2022 (106 deals), 2021 (165 deals), 2020 (158 deals), and 2019 (145 deals) of 41%, 33%, 31%, and 31% respectively.
💡 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
