In today’s briefing:
- Ryoyo (8068) – Ryosan (8140): Recent and Former Activist Targets To Merge
- Newcrest/Newmont & Potential S&P/ASX Changes
- Pan Ocean To Sell 5.8% Stake in Hanjin Kal To Secure Funds to Acquire HMM
- Liontown Resources (LTR AU): Trading Halt Extended; Passive Selling Update
- Liquid Universe of European Ordinary and Preferred Shares: October‘23 Report
- Quiddity Leaderboard F100/250 Dec 23: ~7 Changes Possible; LONG Playtech SHORT 888 Interesting
- Lithium Power (LPI AU): Cedelco’s Offer
Ryoyo (8068) – Ryosan (8140): Recent and Former Activist Targets To Merge
- Today post-close, Ryoyo Electro (8068 JP) and larger equity affiliate (20.1%) Ryosan Co Ltd (8140 JP) announced their final Management Integration Plan (merger by holdco) after signalling a deal May23.
- Activist-Ish-Y Silchester sold their stake in Ryosan to Ryoyo in February at a 20% premium. Activist Murakami-san had a top10 Ryosan stake end-March, went substantial 27 June, now owns 10%.
- Both low-margin/ROE electronics traders have been subject to activist campaigns over the years. Both “survived”. Now they are banding together to be a bigger independent low-margin electronics trader.
Newcrest/Newmont & Potential S&P/ASX Changes
- Newcrest Mining (NCM AU) shares stop trading after the close on 26 October and Newmont Mining (NEM US) CDIs will start trading from the open on 27 October.
- Newmont Mining (NEM US) CDIs should replace Newcrest Mining (NCM AU) in the S&P/ASX indices from 27 October. But there could be index changes at the subsequent rebalances.
- Based on the case of Block (SQ2 AU), we could see Newmont Mining (NEM US) CDIs deleted from the ASX20 Index in December and from the ASX50 Index in March/June.
Pan Ocean To Sell 5.8% Stake in Hanjin Kal To Secure Funds to Acquire HMM
- On 17 October, Pan Ocean (028670 KS) announced that it will sell its 3.9 million shares (5.85% stake) in Hanjin KAL Corp (180640 KS) for about 163 billion won.
- The main purpose of this stake sale is to secure more funds for Pan Ocean to potentially acquire HMM Co., Ltd. (011200 KS).
- As evidenced by the recent increase in Baltic Dry Index, the potential expansion of the war in Israel could benefit major bulk shipping companies such as Pan Ocean.
Liontown Resources (LTR AU): Trading Halt Extended; Passive Selling Update
- Liontown Resources‘ Suspension from Quotation “pending the release of an announcement regarding the finalisation of funding arrangements associated with the Kathleen Valley Project” could last till the open 20 October.
- Short interest continued to increase prior to the trading halt and passive selling will be higher following Hancock increasing its stake to 19.9%.
- The immediate funding for Liontown Resources (LTR AU) could come from debt sources with an equity raise coming later this year or early next year.
Liquid Universe of European Ordinary and Preferred Shares: October‘23 Report
- Since mid-September, spreads have generally tightened across our European liquid universe of ordinary and preferred shares (12 have tightened, 7 widened).
- Recommended trades long preferred / short ordinary shares: Media-for-Europe, Sixt, Volkswagen (still the most interesting situation), Grifols, Atlas Copco.
- Recommended trades long ordinary / short preferred shares: Fuchs, SSAB Svenska Stal.
Quiddity Leaderboard F100/250 Dec 23: ~7 Changes Possible; LONG Playtech SHORT 888 Interesting
- In this insight, we take a look at the potential index changes for F100 and F250 in the run-up to the December 2023 Rebalance.
- Dechra Pharmaceuticals (DPH LN) and Network International Holdings (NETW LN) are currently involved in takeover situations. When those deals close, intra-review changes can be triggered.
- Including these changes, there could be up to one F100 change and seven F250 changes between now and the end of the year.
Lithium Power (LPI AU): Cedelco’s Offer
- Lithium Power International (LPI AU) has announced it has entered into a Scheme Implementation Deed with Chilean state miner Codelco, the world’s largest copper producer.
- Codelco is offering LPI shareholders A$0.57/share, a whopping 119% premium to last close. LPI’s major shareholder, Minera Salar Blanco SpA with 28.25%, is supportive. As is LPI’s board.
- The Scheme Meeting is expected to be held on the 23 January with implementation on the 8 February. Clean deal.
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