In today’s briefing:
- Newmont Proposes Taking Newcrest Back Into The Fold
- Korea: Upcoming Changes to Dividend Rules & Implications
- Korea NPS Reportedly Finalized Additional 50 KOSPI Stocks in Its BM for Direct Management
- Quiddity Leaderboard-S&P/ASX Mar 23: Time to Be Bullish ASX 200 & 300 Potential ADDs
- Renault & Nissan Deal Done: Still a Trading Nothing🍔 So Far, OK Framework but Need Shaq Fingerguns
- Newcrest Mining (NCM AU): Newmont’s Light All-Scrip Offer
- Boustead Projects (BOCJ SP): Unconditional Offer at S$0.90 from Boustead Singapore
- Iwasaki Electric (6924 JP): JPY4,460 MBO Tender Offer from Carlyle
- Delta Electronics (DELTA TB / 2308 TT): Waiting for a Reversal
Newmont Proposes Taking Newcrest Back Into The Fold
- Newmont Mining (NEM US), the world’s largest gold miner, has pitched a non-binding, all-scrip proposal for Newcrest Mining (NCM AU), Australia’s largest listed gold company.
- The proposal offers 0.38 Newmont shares for every Newcrest share, or an indicative Offer price of A$27.16/share, a 21% premium to last close. An earlier proposal from Newmont was rejected.
- The proposal is subject to a raft of conditions, including granting of exclusivity to Newmont, due diligence, Newmont shareholder approval, and regulatory approvals, including FIRB.
Korea: Upcoming Changes to Dividend Rules & Implications
- On 31 January, Korea’s Financial Services Commission (FSC) and the Ministry of Justice announced plans to improve rules regarding dividends to bring them in line with international standards.
- Companies will be able to decide the dividend amount prior to the record dates for quarterly dividends, while the ex-date of the final dividend will be post the AGM.
- This was one of the issues highlighted by MSCI for Korea’s upgrade from EM to DM. There are also implications for the KOSPI200 futures basis and futures rolls.
Korea NPS Reportedly Finalized Additional 50 KOSPI Stocks in Its BM for Direct Management
- NPS said it would add 50 KOSPI stocks to KOSPI 200 for direct management. However, the key was when this would be implemented and which ones would be included.
- SBS, one of Korea’s major networks, exclusively reported that NPS finalized the constituent stocks of the NPS-KR250 and started rebalancing trading on the 50 additional KOSPI stocks from January.
- Hence, tracing and identifying who these additional 50 KOSPI stocks are is becoming the hottest topic in Korea’s local market at this point.
Quiddity Leaderboard-S&P/ASX Mar 23: Time to Be Bullish ASX 200 & 300 Potential ADDs
- In this insight, we take a look at the potential index changes for S&P ASX 20, 50, 100, 200, 300 in the run up to the March 2023 Rebalance.
- There could be one change for ASX 20 and one change for ASX 100 while ASX 200 could see four ADDs/DELs.
- For ASX 300, there could be 15 ADDs and 12 DELs in the March 2023 Rebalance including some high impact names based on days-to-trade.
Renault & Nissan Deal Done: Still a Trading Nothing🍔 So Far, OK Framework but Need Shaq Fingerguns
- As “disclosed” recently, we have a deal. Nissan Motor (7201 JP) will invest “up to 15%” in Ampere. Mitsubishi Motors (7211 JP) may join. They have many potential joint projects.
- The key is the Governance Framework, which replaces RAMA. Renault SA (RNO FP) puts 28.4% of Nissan in an open-ended Trust. Renault and Nissan have 15% reciprocal voting rights.
- The webcast is more optimistic than I am. Luca de Meo made special mention of the joint projects. This sounds good. It sounds like what has always been promised.
Newcrest Mining (NCM AU): Newmont’s Light All-Scrip Offer
- Newcrest Mining (NCM AU) confirmed a non-binding indicative privatisation proposal from Newmont Mining (NEM US) at 0.380 Newmont shares per Newcrest share.
- The offer values Newcrest at a discount to Tier 1 gold producer EV/Resource multiples. Also, the offer carries the volatility risk around Newmont shares and FX rates.
- The offer underscores Newcrest’s value and helps the Board seek better terms. There is a possibility of a counterbid from other Tier 1 producers such as Barrick Gold (GOLD US).
Boustead Projects (BOCJ SP): Unconditional Offer at S$0.90 from Boustead Singapore
- Boustead Projects (BOCJ SP)/BPL has disclosed a voluntary unconditional offer from Boustead Singapore Limited (BOCS SP) at S$0.90 per share, a 7.8% premium to the undisturbed price (3 February).
- The offer price is unattractive in comparison to peer multiples, historical trading ranges and precedent transactions. However, the offer price is not final.
- As Boustead Singapore aims to privatise BPL there is a possibility of a bump. The offer document will be despatched and the offer opens by 27 February.
Iwasaki Electric (6924 JP): JPY4,460 MBO Tender Offer from Carlyle
- Iwasaki Electric (6924 JP) has recommended an MBO tender offer, sponsored by Carlyle Group Inc (CG US), of JPY4,460 per share, an 86.1% premium to the undisturbed price (6 February).
- The transaction is a two-step acquisition through a cash tender offer and subsequent squeeze-out. The lower limit of the offer has been set to meet the 66.67% ownership ratio.
- The tender offer is attractive and represents a ten-year share price high. This suggests a done deal. The tender offer period is from 7 February to 22 March.
Delta Electronics (DELTA TB / 2308 TT): Waiting for a Reversal
- Delta Electronics Thai (DELTA TB) is now the largest stock in Thailand by market cap. The recent SET50 INDEX inclusion has set the stock on fire.
- The Delta Electronics Thai (DELTA TB) / Delta Electronics (2308 TT) spread is very wide now, but still well within the historical highs.
- We’d put on a placeholder position and monitor the spread for an entry once there is a clearer indication of a reversal in the spread.
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