In today’s briefing:
- MVIS Global Rare Earth/Strategic Metals Index Rebalance: Three Adds; Float & Capping Changes
- MVIS US Listed Semiconductor 25 Index Rebalance: Chipping Away
- Quiddity HSTECH Sep 23 Flow Expectations: Two ADDs/DELs Possible
- Weekly Deals Digest (11 Jun) – Toshiba, Chindata, Yitai Coal, Eoflow, Estia, Origin, Amman Mineral
- Quiddity HSCEI Sep 23 Flow Expectations: Two Changes Likely, US$276mn One-Way
- Mason Group (273 HK): Privatisation Bid at HK$0.0338 Per Share
- Merger Arb Mondays (12 Jun) – Chindata, Mason, Yitai, Toshiba, Estia, Origin, Musgrave, Toyo
- Mason (273 HK): Red Emerald’s Scheme
MVIS Global Rare Earth/Strategic Metals Index Rebalance: Three Adds; Float & Capping Changes
- There are 3 inclusions for the MVIS Global Rare Earth/Strategic Metals Index at the June rebalance. Plus there are free float and capping changes.
- One way turnover is estimated at 10.6% and will result in a one-way trade of US$66m. There are a few stocks with over 0.5 days of ADV to trade.
- Yunnan Chihong Zinc&Germanium Co, Ltd. (600497 CH) was not added to the index while ioneer Ltd (INR AU) has avoided deletion in June.
MVIS US Listed Semiconductor 25 Index Rebalance: Chipping Away
- The upcoming rebalance of the MVIS US Listed Semiconductor 25 Index will be implemented on 16 June. There are no constituent changes, but there are float and capping changes.
- The VanEck Vectors Semiconductor (SMH US) ETF tracks the index and has an AUM of US$9.26bn.
- Estimated one-way turnover is 3.9% resulting in a one-way trade of US$358m. The stocks are extremely liquid, the impact on the stock in terms of ADV to trade is small.
Quiddity HSTECH Sep 23 Flow Expectations: Two ADDs/DELs Possible
- In this insight, we take a look at the potential index changes and the resultant capping flows for the HSTECH Index in September 2023.
- Based on the latest available data, I see two ADDs and two DELs.
- For the September 2023 rebalance, I expect one-way capping flows to be around US$234mn.
Weekly Deals Digest (11 Jun) – Toshiba, Chindata, Yitai Coal, Eoflow, Estia, Origin, Amman Mineral
- A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
- ECM developments – Amman Mineral Internasional (1416286D IJ), Tata Technologies (TATATECH IN), JD Industrials (2231713D CH) IPOs.
- Event-Driven developments – Toshiba Corp (6502 JP), Chindata Group (CD US), Eoflow (294090 KS), Inner Mongolia Yitai Coal Company Ltd (3948 HK), Estia Health (EHE AU), Origin Energy (ORG AU).
Quiddity HSCEI Sep 23 Flow Expectations: Two Changes Likely, US$276mn One-Way
- In this insight, we take a look at the potential index changes and the resultant capping flows for HSCEI in September 2023.
- Based on the latest available data, I expect two ADDs and two DELs for HSCEI in the September 2023 Rebalance.
- I estimate one-way flow to be US$276mn. Only the two ADDs and two DELs involved in the index changes are likely to have more than one day to trade.
Mason Group (273 HK): Privatisation Bid at HK$0.0338 Per Share
- Mason Group Holdings (273 HK) announced a privatisation offer from Red Emerald Capital at HK$0.0338 per share, a 20.7% premium to the undisturbed price of HK$0.0280 per share (30 May).
- The key conditions are SFC approval and the scheme being approved by at least 75% disinterested shareholders (<10% disinterested shareholders rejection). The offer price has not been declared final.
- Four shareholders hold a blocking stake – three have provided irrevocables while the other will accept due to the attractive ROI. Therefore, there is a clear pathway to completion.
Merger Arb Mondays (12 Jun) – Chindata, Mason, Yitai, Toshiba, Estia, Origin, Musgrave, Toyo
- We summarise the latest spreads and newsflow of merger arb situations covered by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
- Highest spreads 111 Inc (YI US), Mason Group Holdings (273 HK), United Malt Group Ltd (UMG AU), HKBN Ltd (1310 HK), Silk Laser Australia (SLA AU), Chindata Group (CD US).
- Lowest spreads – Healius (HLS AU), Liontown Resources (LTR AU), Musgrave Minerals (MGV AU), Lian Beng (LBG SP), Toyo Construction (1890 JP), Mincor Resources NL (MCR AU).
Mason (273 HK): Red Emerald’s Scheme
- After broker Mason Group (273 HK) was suspended pursuant to Hong Kong’s Takeovers Code on the 31 May, it has now announced a privatisation by way of Scheme at HK$0.0338/share.
- The Offer price is only a 20.7% premium to last close, and a 12.7% premium to the three-month average closing price. It has not been declared final.
- The Offeror is Red Emerald. Shareholders with 47.55% of shares out have given irrevocables in support of the Scheme.
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