In today’s briefing:
- (Mostly) Asia-Pac M&A: Dyna Mac, Platinum Asset, Fuji Soft, JTower, Arvida, Korea Zinc, Sun Art
- Sun Art Retail (6808 HK): Alibaba’s Stake Draws PE Interest
- Last Week in Event SPACE: DFI/JD.com/Yonghui, Alibaba/Sun Art, New World Development, Austal
- Kum Yang: Rights Offering Capital Raise of 450 Billion Won
- Quiddity Leaderboard TDIV Dec 24: 5 ADDs/4 DELs Likely; US$1.38bn One-Way
- Quiddity Leaderboard T50/100 Dec 24: An Alternate Possibility for Formosa Sumco TDIV Deletion
(Mostly) Asia-Pac M&A: Dyna Mac, Platinum Asset, Fuji Soft, JTower, Arvida, Korea Zinc, Sun Art
- I tally 39 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
- Two new deals discussed on Smartkarma this week: Xingda International (1899 HK) and NSL Ltd (NSL SP). Sun Art Retail (6808 HK) also susppended due to the Takeovers Code.
- Key updates took place on: Dyna Mac Holdings (DMHL SP), Platinum Asset Management (PTM AU), Fuji Soft (9749 JP), JTower (4485 JP), Arvida (ARV NZ), and Korea Zinc (010130 KS).
Sun Art Retail (6808 HK): Alibaba’s Stake Draws PE Interest
- Sun Art Retail (6808 HK) entered a trading halt under the Code on Takeovers and Mergers. Bloomberg suggests Alibaba Group Holding (BABA US)’s stake is attracting preliminary interest from PE.
- Alibaba built its 78.70% stake through two purchases in 2017 (HK$6.50) and 2021 (HK$8.10). An exit would align with the strategy to focus on the core business segments.
- The recent Miniso-Yonghui transaction could have prompted PE to act. An offer at book value would imply HK$2.50, a 40% premium to the last close price.
Last Week in Event SPACE: DFI/JD.com/Yonghui, Alibaba/Sun Art, New World Development, Austal
- Hypermarket reshuffles as JD.com (9618 HK) and DFI Retail (DFI SP) exit Yonghui Superstores (601933 CH); and Alibaba Group (9988 HK) potentially exits Sun Art Retail (6808 HK).
- Evidently the influence of a younger hip third-generation tycoon-scion wasn’t the panacea for New World Development (17 HK) and its ongoing issues in the HK/China property space.
- MBK bumps the Tender Offer prices for Korea Zinc (010130 KS) by 13.6% to ₩750,000 and Young Poong Precision (036560 KS) by 25% to ₩25,000. What with the Choi’s do?
Kum Yang: Rights Offering Capital Raise of 450 Billion Won
- Kum Yang announced a rights offering capital raise of 450 billion won which will be used for facility investments and debt repayment.
- The estimated rights offering price is 38,950 won, which is 31% lower than current price (56,500 won).
- We remain negative on Kum Yang. Despite the sharply lower rights offering price relative to current price, we would avoid the rights offering.
Quiddity Leaderboard TDIV Dec 24: 5 ADDs/4 DELs Likely; US$1.38bn One-Way
- In this insight, we take look at Quiddity’s expectations for index changes and capping flows for the TDIV Index for the December 2024 index rebal event.
- I currently see 5 ADDs and 4 DELs but there are several names close to the border and expectations could change before the base date as prices move around.
- The current estimate for one-way flow in December 2024 is US$1.38bn.
Quiddity Leaderboard T50/100 Dec 24: An Alternate Possibility for Formosa Sumco TDIV Deletion
- The T50 index represents the top 50 largest stocks by market capitalization in the Taiwan Stock Exchange (TWSE). The T100 index represents the next 100 largest names (51-150 ranks).
- In this insight, we take a look at the potential ADDs and DELs for the December 2024 index rebal event.
- Currently, we see one change for T50 and one change for T100 but there are two more months to the base date and our expectations can change until then.
💡 Before it’s here, it’s on Smartkarma
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