In today’s briefing:
- KRX Plans to List Single-Stock Futures of All KS200 & KQ150 Constituents
- Asian Defence Contractors: Up In Arms
- KRX New Deal Index Rebalance Preview: Potential & Close Changes in September
- Lian Beng (LBG SP): Ong Family’s Final, Unconditional and Derisory S$0.68 Offer
- Oishi Group (OISHI TB): Shareholders Approve the THB59.00 Delisting Offer
- Lian Beng: The Family Bumps. Still <50% of NAV
KRX Plans to List Single-Stock Futures of All KS200 & KQ150 Constituents
- According to Chosun, KRX plans to list the single-stock futures of all constituents of KOSPI 200 and KOSDAQ 150 within 2-3 years.
- This information comes from a KRX official, who directly confirmed it. As Chosun is the most well-established news outlet in Korea, the credibility of this article is quite high.
- We should consider screening those with a high proportion of short-selling positions and devising a positioning strategy in conjunction with the new listing event of single stock futures in July.
Asian Defence Contractors: Up In Arms
- According to the Stockholm International Peace Research Institute (SIPRI), total global military expenditure increased by 3.7% in real terms in 2022, to reach a new high of $2,240bn.
- A number of European states significantly increased their military spending following Russia’s invasion of Ukraine. Elsewhere, Japan’s 2022 military spending accounts for 1.1% of GDP, the highest level since 1960.
- South Korea had four companies inside the world’s top 100 arms manufacturers in 2021. These conglomerates are expected to move up the ranking in 2022.
KRX New Deal Index Rebalance Preview: Potential & Close Changes in September
- The review period for the September rebalance ends on 31 July, the changes will be announced towards end August and implemented at the close of trading on 7 September.
- There are potential changes to some of the indices and then there are close changes that will result in big flows if they eventuate.
- The March rebalance saw some funky moves on the stocks that had big flows and we could see more of that at the September rebalance.
Lian Beng (LBG SP): Ong Family’s Final, Unconditional and Derisory S$0.68 Offer
- Lian Beng (LBG SP)/LBG disclosed a revised final voluntary unconditional offer from the Ong family at S$0.68 per share, a 9.7% premium to the previous offer of S$0.62 per share.
- The final offer price remains unattractive in comparison to peer multiples and precedent transactions. The offer is open and closes on 26 May.
- The Ong Family aims to privatise LBG. Hitting the 90% compulsory acquisition threshold implies a minority acceptance rate of around 64%, which could prove to be a challenge.
Oishi Group (OISHI TB): Shareholders Approve the THB59.00 Delisting Offer
- Oishi Group PCL (OISHI TB)’s shareholders overwhelmingly approved Thai Beverage (THBEV SP)’s delisting tender offer of THB59.00 per share. The approval was expected as ThaiBev was allowed to vote.
- The offer is attractive compared to historical share prices, multiples and the IFA’s fair value of THB53.48-56.42 per share.
- The delisting now requires SET approval. At the last close and for an end of July completion, the gross and annualised spread is 2.2% and 9.4%, respectively.
Lian Beng: The Family Bumps. Still <50% of NAV
- On the 11th April, construction firm Lian Beng (LBG SP) announced an Offer from the controlling Ong family of S$0.62/share, a 59.7% discount to the November 2022 NAV of S$1.538/share.
- After media articles judged the Offer price as being too low – it is – the Ongs have now bumped the Offer Price 9.7% to S$0.68/share and declared terms final.
- It’s still the wrong price. Yet Lian Beng is illiquid, And the revised price is a lifetime high.
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