In today’s briefing:
- Liontown Resources Placement – While Discount Is Wide, It Is at a Premium to Its Pre-Takeover Price
- Another Hidden Passive Flow Trading Opportunity Is Captured in Korea: SOL Semicon ETF December Rebal
- Golden Eagle Energy: Share Sale Done. MTO Price Bumped
- ZJLD Lock-Up – KKR’s US$680m Stake to Be Unlocked, Although the PE Could Opt to Wait
- Liontown Resources (LTR AU): State of Play
- Origin/Brookfield: Bump Expected Ahead Of 23 Nov Scheme Meeting
- A Merger Share Swap Between Kolmar Korea and Yonwoo
- Quiddity Leaderboard SE600 Dec 23: Novartis-Sandoz, Dechra, CHR, and Others
Liontown Resources Placement – While Discount Is Wide, It Is at a Premium to Its Pre-Takeover Price
- Liontown Resources (LTR AU) is looking to raise A$365m (US$230m) for capital expenditure and to plug its funding gap for the Kathleen Valley Lithium (KVL) project.
- Together, the combined A$1.14bn equity/debt raising comes after Albemarle abandoned its A$6.6bn (US$4.2bn) acquisition bid for Liontown Resources earlier in the week.
- In this note, we will talk about the deal dynamics and run the deal through our ECM framework.
Another Hidden Passive Flow Trading Opportunity Is Captured in Korea: SOL Semicon ETF December Rebal
- For the impending December rebalancing, the effective date is set for December 18th, while the ETF rebalancing trading will take place on December 15th.
- Jusung Engineering and Eugene Technology are likely to be added, while Lake Materials and SFA Semicon are expected to exit the index.
- Aside from constituent changes, Hansol Chemical is anticipated to significantly benefit from the passive impact as the primary beneficiary of the ceiling reversion.
Golden Eagle Energy: Share Sale Done. MTO Price Bumped
- This transaction just keeps on giving. First, you received an additional dividend. Now the Offer price has been increased.
- On the 26 July, Geo Energy Resources (GERL SP) announced an intention to acquire a 58.65% stake in coal miner Golden Eagle Energy (SMMT IJ) (GEE).
- Geo shareholders approved the purchase on the October 13 and the acquisition was completed on the 18 October. This triggered an MTO, which has been revised upward to IDR 1,305.50.
ZJLD Lock-Up – KKR’s US$680m Stake to Be Unlocked, Although the PE Could Opt to Wait
- ZJLD Group (6979 HK) raised US$676m in its Hong Kong IPO in April 2023. Its six-month lockup will expire on 26th Oct 2023.
- ZJLD is a Chinese liquor company producing baijiu. As per F&S, the firm ranked third among all baijiu companies with three or more aroma types in terms of FY21 sales.
- In this note, we will talk about the lock-up dynamics and updates since our last note.
Liontown Resources (LTR AU): State of Play
- Liontown Resources (LTR AU) resumes trading today after announcing a raise of up to A$1.18bn to fully fund the Kathleen Valley Lithium Project to first production and beyond.
- The equity component is up to A$421m and the placement price of A$1.8/share is a 35.5% discount to the last close.
- The placement price is higher than the stock price prior to the Albemarle Corp (ALB US) offer and during a period when its peers have performed poorly.
Origin/Brookfield: Bump Expected Ahead Of 23 Nov Scheme Meeting
- On 20th October, the ACCC cleared Brookfield to take over Origin Energy (ORG AU).
- The transaction still needs shareholder approval and AustralianSuper with its too-big-to-ignore 13.68% stake reckons terms are below long-term value.
- The Scheme Booklet is out with a 23 November Scheme Meeting. The IE backs out a fair value range of $8.45-$9.48/share, but as at June 30. A bump is imminent.
A Merger Share Swap Between Kolmar Korea and Yonwoo
- On 19 October, Kolmar Korea announced that it will conduct a merger share swap with Yonwoo early next year to make it into a 100% wholly owned subsidiary.
- We believe the merger share swap agreement between Kolmar Korea and Yonwoo is likely to have positive impact on both Kolmar Korea and Yonwoo.
- After this share swap is completed, Yonwoo will be delisted. This merger is aimed at improving the inefficient governance structure caused by duplicate listings and improve management efficiency.
Quiddity Leaderboard SE600 Dec 23: Novartis-Sandoz, Dechra, CHR, and Others
- The SE600 index is one of the most widely followed benchmark indices in Europe. This index is rebalanced on a quarterly basis.
- In this insight, we take a look at the potential index changes that could take place between now and the end of the December 2023 rebalance.
- This includes a couple of intra-review index changes that could be triggered by the Dechra Pharmaceuticals (DPH LN) and Chr Hansen Holding A/S (CHR DC) takeover situations.
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