In today’s briefing:
- Market Talk on the Five Stocks Hitting the Lower Limit Yesterday
- Abacus Offers ASK – The Back End Trade Is Still Better
- Great Eagle Holdings (41 HK): Copy That!
- ASK Listing – Asset Quality Seems to Trump It’s Peer, However Settlement Period Is Long
- Austal (ASB AU): Attracting Takeover Interest
Market Talk on the Five Stocks Hitting the Lower Limit Yesterday
- The trigger for yesterday’s sell-off was the sudden collective decision of the brokerages that had been allowing credit trading for these stocks to halt credit trading simultaneously.
- There is a possibility that the identities of the stocks under investigation were leaked, and these brokerages took preemptive actions.
- There have also been observations of large-cap stocks that may become the next targets. Some notable examples include Cosmo Chemical, Kum Yang, Posco International, and Ecopro Co.
Abacus Offers ASK – The Back End Trade Is Still Better
- This morning, Abacus Property (ABP AU) units were halted for trading and the Institutional Offer for Abacus Storage King (future ASK AU) units were launched.
- The Offer is underwritten by Barrenjoey and Morgan Stanley. The Institutional Offer will be completed by Friday, and results announced Monday 19 June, with trading halt lifted.
- Then the Retail portion of the Offer will be conducted til 27 July. EGM the same day. Delayed settlement trading of ASK and New ABP (ABG AU) will start 1Aug.
Great Eagle Holdings (41 HK): Copy That!
- Ever since Lo Ying-shek, the founder of Great Eagle (41 HK) passed away in 2006, as invariably happens, family relations deteriorated as the children sought to assert control over GE.
- Matters reached a crescendo when Lo’s wife brought legal action against HSBC International Trustee in 2016 as executor of a large % of shares into GE.
- That plaintiff action failed, as did subsequent appeals. The latest battle centers on a judge’s ruling which extensively incorporated (read copied) the defendant’s submission in his final decision.
ASK Listing – Asset Quality Seems to Trump It’s Peer, However Settlement Period Is Long
- Abacus Property (ABP AU) is looking to de-staple Abacus Storage King (ASK AU) , its self-storage business. The offer will be underwritten by Morgan Stanley and Barrenjoey.
- Offering 1 ASK share for every 5.6 ABP share, the REIT is looking to raise A$225m (US$153m) via offering 159.6m shares at a A$1.41-1.47/share price band.
- The deal is effectively an IPO, and after having been in the making for some time now, it is well flagged as well.
Austal (ASB AU): Attracting Takeover Interest
- Austal Ltd (ASB AU) is drawing takeover interest from Cerberus Capital, according to AFR. Cerebus joins Arlington Capital Partners and Bondi Partners as rumoured suitors, increasing the bid odds.
- Takeover interest in Austal is driven by the desire to capitalise on the opportunities presented by the AUKUS defence pact between Australia, the US and the UK.
- Andrew Forrest’s 19.34% stake can make or break a deal. Peer multiples point to an offer of at least A$2.80, a 22% premium to the last close.
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