In today’s briefing:
- Plenus (9945) To Go Private in MBO – Looks Like a Done Deal
- Kingston’s All-Time Lows to Draw an Offer from Mrs Chu?
- MSCI Korea November SAIR: Three Adds & Four Deletes
- Index Rebalance & ETF Flow Recap: CSI500, SSE180, KOSPI2, Sensex, MSCI IN/KR, TW Div+, Socionext
- Last Week In Event SPACE: Renault/Nissan, Toshiba, Golden Energy, Bilibili, Shinsei, Macau Casinos
- FTSE TWSE Dividend+ Quiddity Leaderboard Dec 22: New Methodology! Massive Flow Implications!
- (Mostly) Asia-Pac Weekly Risk Arb Wrap: Elmo Software; Golden Energy, Kingston Financial, Pushpay
- Hong Kong CEO & Director Dealings: 14th Oct: Lion Rock, VCredit, Zhongsheng, Concord New Energy
- FTSE TWSE 50 & 100 Quiddity Leaderboard Dec 22: Greatek Facing Div+ Index Deletion
Plenus (9945) To Go Private in MBO – Looks Like a Done Deal
- Kyushu-Based food services business and restaurant operator Plenus Co Ltd (9945 JP) announced Friday that its main holder had announced a Tender Offer. The Board voted to support the effort.
- The Tender Offer is at ¥2,640/share, a 37.5% premium to last, and which is just higher than the highest closing price since listing.
- This looks like a deal easy to get done. Decent premium, well above book, lifetime high on a low vol stock, not an awful multiple, and founder+cross-holders have 50%.
Kingston’s All-Time Lows to Draw an Offer from Mrs Chu?
- Kingston Financial (1031 HK) entered a trading halt pending an announcement under the Hong Kong Code on Takeovers and Mergers on 14 October. The shares are at all-time lows.
- It is likely that Pollyanna Chu Yuet Wah (CEO and co-founder), the largest shareholder representing 75.61% of ordinary shares (80.09% of diluted shares), is seeking to privatise Kingston.
- As privatisation through a Bermuda scheme involves the headcount test, a decent premium is required – an offer at the 1-year average price of HK$0.33 implies a 63% premium.
MSCI Korea November SAIR: Three Adds & Four Deletes
- As the recent share price volatility has grown, there have been significant changes in those on the borderline at the MSCI November SAIR.
- Additions: Hyundai Mipo Dockyard (010620), LOTTE Corp (004990), and Ecopro (086520) & Deletions: Meritz Financial Group (138040), Amorepacific Group (002790), SK Chemicals (285130), and Green Cross (006280).
- We must wait on many names until the end, making the price impact more dramatic than usual, as the flow can be concentrated after the announcement.
Index Rebalance & ETF Flow Recap: CSI500, SSE180, KOSPI2, Sensex, MSCI IN/KR, TW Div+, Socionext
- The review period for the MSCI November SAIR starts this week and will run till 31 October. We also near the end of the review period for many local indices.
- AIPL has announced a S&P BSE SENSEX Index market consultation while FTSE has announced the result of the FTSE TWSE Taiwan Dividend+ Index market consultation.
- There were big weekly inflows to ETFs that track China, Taiwan, Korea and Hong Kong equities.
Last Week In Event SPACE: Renault/Nissan, Toshiba, Golden Energy, Bilibili, Shinsei, Macau Casinos
- In April, reportedly Renault (RNO FP) might sell Nissan (7201 JP) shares to support EV investments. We have news talks are coming to a head. The results won’t be pretty.
- The Nikkei says the JIP consortium is the “Preferred Bidder” for Toshiba Corp (6502 JP). That is a stalking horse. The proposed price of ¥2.5trn is also a stalking horse
- Reportedly the Widjaja Family may be looking to take Indonesian/Australian energy/met coal play Golden Energy & Resources (GER SP) private.
FTSE TWSE Dividend+ Quiddity Leaderboard Dec 22: New Methodology! Massive Flow Implications!
- On 20th September 2022, FTSE Russell commenced a market consultation with a goal of increasing the constituent count of the FTSE TWSE Taiwan Dividend+ Index from 30 to 50.
- On 13th October 2022, FTSE Russell confirmed that the number of constituents in the FTSE TWSE Taiwan Dividend+ Index will be increased from 30 to 50.
- In this insight, we take a look at the updated Ground Rules and Quiddity’s expectations for index flows during the December 2022 Rebalance.
(Mostly) Asia-Pac Weekly Risk Arb Wrap: Elmo Software; Golden Energy, Kingston Financial, Pushpay
- There are 49 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
- Three new (possible) deals discussed this week: KKR’s tilt for Elmo (ELO AU); Widjaja Family’s move on Golden Energy & Resources (GER SP), Chu’s bid for Kingston Financial (1031 HK)
- Key updates took place for Toshiba Corp (6502 JP), Pushpay Holdings (PPH NZ), True Corp Pcl (TRUE TB) / Total Access Communication (DTAC TB), and PTB Group (PTB AU).
Hong Kong CEO & Director Dealings: 14th Oct: Lion Rock, VCredit, Zhongsheng, Concord New Energy
- The data in this insight is collated from the “shareholding disclosure” link on the HKEx website.
- Often there is a corresponding HKEx announcement on the increase – or decrease – in the shareholding by directors. However, such disclosures are by no means an absolute.
- These insights may flag those companies where shares have been pledged. Stocks mentioned include Lion Rock (1127 HK), VCredit (2003 HK), Zhongsheng (881 HK), and Concord New Energy (182 HK).
FTSE TWSE 50 & 100 Quiddity Leaderboard Dec 22: Greatek Facing Div+ Index Deletion
- In this insight, we take a look at the names leading the race to become ADDITIONs/DELETIONs for the Taiwan 50 and Taiwan Mid-Cap 100 Indices for the December 2022 Rebalance.
- There could be one change in the Taiwan 50 Index and three changes in the Taiwan Mid-Cap 100 index.
- There are multiple names close to the borders and there could be more ranking changes before the base date for review (21st November 2022).
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