In today’s briefing:
- Link REIT (823) – Nil Paid Rights Start Trading Tomorrow – The Trades
- Sosei Group (4565 JP) TSE Prime Promotion and TOPIX Inclusion… Finally
- Meritz Merger Approved: Let’s Now Discuss Key Dates & Entry Points For LONG DGB Financial
- HYBE: May Be Seeking to Raise As Much as 1 Trillion Won (Will Investors Support This Plan)?
- HSCEI Dividend Futures: Fair Value Estimates as Result Season Looms
- Sabana REIT (SSREIT SP): Volare’s Partial Offer Unconditional
- Hong Kong CEO & Director Dealings (9 Mar): Lenovo, CLP Holdings, GoFintech, North Asia Strategic
Link REIT (823) – Nil Paid Rights Start Trading Tomorrow – The Trades
- In early February, Link REIT (823 HK) announced it would do a 1 for 5 rights offering, with the Exercise Price well below TERP.
- The REIT units dropped in price as the already unlevered REIT was not seen to be needing further deleverage and early debt repayment in a rising rate environment.
- Units went ex-Rights on 24 February. The rights start trading tomorrow. That means flows. Of multiple kinds. Worth thinking about.
Sosei Group (4565 JP) TSE Prime Promotion and TOPIX Inclusion… Finally
- Sosei Group (4565 JP) is a Tokyo-based biopharma group which started small, got big and exciting, and hasn’t grown in market cap in years, while it has grown in ambition.
- It has strategic relationships with AbbVie, Biohaven, Genentech, GSK, Takeda, Pfizer, AstraZeneca, and Takeda and a market cap near ¥200bn.
- It has always had impressive shareholder support. Now after nearly 20 years on TSE Mothers/Growth (the limit was supposed to be 10yrs), it moves to TSE Prime and TOPIX.
Meritz Merger Approved: Let’s Now Discuss Key Dates & Entry Points For LONG DGB Financial
- K200 ad hoc change announcement date should be March 30 as the buyback ends on March 28, and rebalancing trading should occur on March 31.
- From a juice-level perspective, the entry point and timing for JB Financial showed much better performance from EGM approval rather than the announcement.
- We should consider gradually building up positions from this point until March 30 announcement or one day after (T-1 effective) while utilizing Kodex Banks ETF to hedge our long positions.
HYBE: May Be Seeking to Raise As Much as 1 Trillion Won (Will Investors Support This Plan)?
- In the last few days, there have been local media accounts that mentioned that HYBE may be seeking as much as 1 trillion won (US$760 million) from investors.
- The more likely scenario is that HYBE encounters a greater backlash from the global investors in its attempts to raise nearly 1 trillion won.
- We maintain our existing stance of Kakao eventually winning this M&A battle for the controlling stake in SM Entertainment.
HSCEI Dividend Futures: Fair Value Estimates as Result Season Looms
- The HSCEI 2023 dividend futures have moved up over the last few months though there was a sharp move lower in the last couple of weeks.
- With results and dividends scheduled to be announced in the next few weeks, we take a look at the fair value estimate for the 2023 dividend futures.
- We also list out the things to watch for over the next few weeks and months that could impact the 2023 dividend futures and the 2023/24 dividend steepener.
Sabana REIT (SSREIT SP): Volare’s Partial Offer Unconditional
- Sabana Industrial REIT (SSREIT SP)’s partial offer from Volare of S$0.4504 per unit (S$0.465 in cash – S$0.0146 2H2022 distribution) is now unconditional. The final closing date is 24 March.
- On the assumption that ESR Cayman and Quarz Capital did not tender, acceptances representing 16.16% of outstanding units imply current proration is 61.87%.
- Based on the current proration of 61.87% and at the last close price of S$0.420 per unit, the breakeven price is S$0.373 per unit.
Hong Kong CEO & Director Dealings (9 Mar): Lenovo, CLP Holdings, GoFintech, North Asia Strategic
- The data in this insight is collated from the “shareholding disclosure” link on the HKEx website.
- Often there is a corresponding HKEx announcement on the increase – or decrease – in the shareholding by directors. Or pledging. However, such disclosures are by no means an absolute.
- Stocks mentioned include Lenovo (992 HK), CLP Holdings (2 HK), GoFintech (290 HK), and North Asia Strategic Holdings (8080 HK).
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