In today’s briefing:
- Last Week in Event SPACE: Toshiba, Swire, SOHO, Link Admin, DIDI Global, 51job
- Index Rebalance & ETF Flow Recap: STAR50, NIFTY50/100, KRX, Tianqi Lithium, Kotak Bank, Emperador
- What We Should Know About the Nexon Inheritance Tax Dilemmas
- (Mostly) Asia-Pac Weekly Risk Arb Wrap: Pendal, Link Ad, Toshiba, Excelpoint, Cocoaland, True/DTAC
Last Week in Event SPACE: Toshiba, Swire, SOHO, Link Admin, DIDI Global, 51job
- Toshiba Corp (6502 JP)‘s bidder list is out. It is Bain, Brookfield, JIP-JIC, and CVC. Overall, the impression of this pool of candidates is negative
- Swire Pacific (A) (19 HK) is trading cheap at a look-through forward P/B of 0.26x compared to its five-year average of 0.38x, and the two-year average pre-Covid of 0.48x.
- Soho China (410 HK)‘s name was toxic after SAMR dinged Blackstone’s deal. It is no less toxic now. Arguably the upside is greater than the downside. But on what timeframe?
Index Rebalance & ETF Flow Recap: STAR50, NIFTY50/100, KRX, Tianqi Lithium, Kotak Bank, Emperador
- We have gone through days 1-5 of the review period for the MSCI September rebalance. There are multiple review cutoffs in the coming week.
- The announcement of the changes to the LQ45/IDX30/IDX80 indices should be made early in the coming week and implemented at the close on 29 July.
- China had the largest ETF inflows over the last week, while there were outflows from Korea focused ETFs.
What We Should Know About the Nexon Inheritance Tax Dilemmas
- A critical issue arose lately. The Nexon heirs do not have collateral for installment payment. The Korea NTS doesn’t accept shares of an unlisted company as collateral for tax payment.
- So, the contingency plan is a direct equity sale. The more feasible would be for NXC to sell its stake in Nexon for the convenience of valuation and finding buyers.
- The deal size is so large that it can come out in multiple block deals rather than a single buyer deal by the end of October.
(Mostly) Asia-Pac Weekly Risk Arb Wrap: Pendal, Link Ad, Toshiba, Excelpoint, Cocoaland, True/DTAC
- There are 43 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
- I see no new transactions were discussed this week on Smartkarma.
- Key updates took place for: Pendal Group (PDL AU),Link Administration (LNK AU), Toshiba Corp (6502 JP), Excelpoint Technology (EXLP SP), and Cocoaland Holdings (COLA MK).
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