In today’s briefing:
- SBI Obtains Approval – Has Plan To Buy 0.965% of Shinsei – It Isn’t Strategic, It’s Technical
- Golden Energy & Resources: Widjaja Family Betting Ridiculous Cashflow Continues
- Clarifying KRX’s Confusing Heads-Up Designation System for KOSPI 200/KOSDAQ 150 Review
- Pushpay: BGH Resurrects The Catholic Opportunity
- MSCI Korea November SAIR: Potential Deletes Continue to Slide
- MSCI Korea: Potential Inclusions & Exclusions in November 2022 Highlighted by Locals
- Toshiba (6502) – JIP Gets Preferred Bidder Status and We Get The First Price Leak
- PTB Scheme Meeting on 16 November
- Lock & Lock – Announces Dividends Worth 25% of Market Cap
- Cyberattacks at Numerous US Airports by Suspects from Russia
SBI Obtains Approval – Has Plan To Buy 0.965% of Shinsei – It Isn’t Strategic, It’s Technical
- SBI Holdings (8473 JP)‘s unit SBI Regional Bank Holdings KK (SBI 地銀ホールディングス株式会社) today announced it had received FSA authorisation to turn the company into a Bank Holding Company.
- There are some technicalities involved. SBI announced it would buy 2.5mm shares of Shinsei on-market to get to 50.05% by end-March 2023. This will disappoint some, but…
- I expect investors should continue to look at the big picture. Technicalities are technicalities. Strategy is strategy. The big picture is unchanged and there isn’t that much room to manoeuvre.
Golden Energy & Resources: Widjaja Family Betting Ridiculous Cashflow Continues
- Golden Energy & Resources (GER SP), an Indonesian/Australian energy/met coal play, may be subject to an acquisition from its controlling shoulder, the Widjaja Family.
- GEAR reported 1H22 (to June) earnings of US$279mn, an 859% gain yoy, as contributions from the newly acquired stake in an Australian coal mine from BHP (BHP AU) kicked in.
- The family is potentially betting on one to two more years of outsized cashflow as the world’s coal habit remains healthy.
Clarifying KRX’s Confusing Heads-Up Designation System for KOSPI 200/KOSDAQ 150 Review
- The KRX gives three heads-up types: WARNING (illegal trading), ADMINISTRATIVE (insolvency), & ATTENTION (inappropriate accounting). Those losing eligibility are ADMINISTRATIVE (KOSPI 200) and ADMINISTRATIVE + ATTENTION (KOSDAQ 150).
- Those designated as WARNING keep the eligibility for KOSPI 200/KOSDAQ 150 unless delisting is decided. We can find these heads-up designations on the KRX website, which is available in English.
- Osstem is currently an ATTENTION issue, so ineligible at this point. Knotus was designated as a WARNING issue in June and underwent a trade suspension. Nevertheless, it maintains eligibility.
Pushpay: BGH Resurrects The Catholic Opportunity
- Back on the 26 April, church donor management tech play Pushpay Holdings (PPH NZ) announced “unsolicited, non-binding and conditional expressions of interest or approaches from third parties“. No price was mentioned.
- Roughly a month later, BGH Capital and Sixth Street, both existing shareholders, entered into a cooperation agreement with respect to a potential transaction for Pushpay. Again, no price was provided.
- Pushpay has now announced it has received a non-binding proposal. Word on the street this involves BGH. Still, no price was made public. A 30% premium to undisturbed is ~NZ$1.34/share.
MSCI Korea November SAIR: Potential Deletes Continue to Slide
- With a week to the start of the review period, we forecast one inclusion and a lot more deletions for the MSCI Korea Index at the November SAIR.
- The impact from passive fund trading is pretty large on the potential and close deletes while the impact is a lot more muted on the sole potential add.
- There will be pre-positioning on most of the names already and part of that shows up in sharply higher short interest on a few stocks.
MSCI Korea: Potential Inclusions & Exclusions in November 2022 Highlighted by Locals
- We discuss the potential inclusions and exclusions in the next MSCI Korea Index rebalance announcement (10 November) that are being highlighted by the locals.
- The potential inclusion candidates in the MSCI Korea Index emphasized by the locals in November 2022 include Hyundai Mipo Dockyard (010620 KS) and Hanwha Aerospace (012450 KS).
- Potential exclusion candidates include Seegene Inc (096530 KS), Meritz Financial Group (138040 KS), and Green Cross (006280 KS).
Toshiba (6502) – JIP Gets Preferred Bidder Status and We Get The First Price Leak
- Overnight, a few news outlets are running with the story that Toshiba Corp (6502 JP) has granted “preferred bidder” status to the Japan Industrial Partners (JIP)-led consortium bid.
- JIP had originally signed up with public-private fund JIC, forming one of the four bids (the other three being CVC, Bain, and Brookfield) but JIP and JIC split last month.
- “Preferred Bidder status” is just that. It’s not exclusive, but one can read between the lines. But the articles have interesting details, including the first trial ballon price leak.
PTB Scheme Meeting on 16 November
- PTB Group Ltd (PTB AU)‘s scheme meeting is on 16 November. The IE considers the offer of A$1.595 + dividend up to A$0.03 per share (total of A$1.625) fair.
- The key condition is approval from shareholders – headcount test and approval by at least 75% of the votes cast on the resolution. The two largest shareholders will vote YES.
- We continue to think that offer is attractive. At the last close price and for the 9 December payment, the gross and annualised spread is 2.2% and 13.8%, respectively.
Lock & Lock – Announces Dividends Worth 25% of Market Cap
- After the market close today, Lock&Lock announced that it will pay out dividends per share of 1,653 won worth 83 billion won, representing 25% of the company’s market cap.
- The shareholders date of record that could receive the dividends is as of 30 September 2022.
- Although the high dividend payment should benefit the existing shareholders, we are not sure on the company’s ability to continue to maintain high dividend payout ratio.
Cyberattacks at Numerous US Airports by Suspects from Russia
- In the past 24 hours, there have been many news flow about numerous US airports that have been cyber attacked by suspects from Russia.
- The increasing media attention on cyberattack threat could result in greater concerns about cybersecurity inducing higher global spending on software and other services that help to protect against cyber attacks.
- Global cybersecurity stocks that could benefit from greater media attention on cyberattacks include Palo Alto Networks (PANW US) Crowdstrike Holdings Inc (CRWD US) CloudFlare (NET US).
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