In today’s briefing:
- Solactive Lithium Index Rebalancing: Noteworthy Names in Korea Before the Announcement
- Bank of Kyoto (8369 JP) Holdco Maybe Rich-Ish – Watch for TOPIX Rebal SELL Flow
- Singapore Medical (SMG SP): “Not Fair But Reasonable” Says IFA. TLW Needs To Bump
- HDFC/HDFC Bank Mega Merger: End Game in Sight
- S&P/ASX Quiddity Leaderboard Dec 22: Top Ranked ASX200 ADDs Look Interesting
- EVOC’s H Share Class Meeting – And that Is a Pass
Solactive Lithium Index Rebalancing: Noteworthy Names in Korea Before the Announcement
- LG Chem’s deletion is almost a done deal. The pouch-type pack goes to LG Energy, and the cathode business is not big enough to beat L&F.
- Chunbo is an additive field that this index has not included so far. So, Chunbo will be added as a new addition rather than replacing someone else.
- SK IE Tech is quite tricky. The key is to see separator and elecfoil as the same field. If so, SK IET is likely to replace Iljin Materials.
Bank of Kyoto (8369 JP) Holdco Maybe Rich-Ish – Watch for TOPIX Rebal SELL Flow
- Bank of Kyoto (8369 JP) is currently at a 51% discount to the After Tax Value of its Equity Portfolio assuming its banking ops are priced at a RegionalBankAveragePBR.
- That is, believe it or not, relatively narrow, and given the nature of the risks making it a range trade, it makes short-term timing probably a sell.
- There is, helpfully, 6 days of ADV to sell in the TOPIX FFW adjustment on 28 April, and all five of the top holdings are also net sells (0.5-1.1 days).
Singapore Medical (SMG SP): “Not Fair But Reasonable” Says IFA. TLW Needs To Bump
- On the 14 September, healthcare provider Singapore Medical (SMG SP) announced a low-balled voluntary MBO from TLW at S$0.37/share, a 13.8% premium to last close.
- The Offer is conditional on 90% of shares out held by the Offeror, and the TLW shareholders plus irrevocables hold 51.67% all-in. This 90% conditionality is firm.
- The Circular is now out. The IFA (Zico Capital) says the Offer is “not fair but reasonable”. That seems reasonable. The Offer has NOT been declared final.
HDFC/HDFC Bank Mega Merger: End Game in Sight
- Foreign shareholding in HDFC Limited (HDFC IN) has inched higher while moving a tad lower on HDFC Bank (HDFCB IN). Overall, no change in foreign room on the merged entity.
- The merger could complete in Q1 2023 and there could be sizeable buying from MSCI trackers. There should be no change for FTSE trackers.
- The recently announced market consultation by NSE Indices should result in no buying/selling from passive trackers; there will be some additions to the NIFTY Index and Nifty Next 50 Index.
S&P/ASX Quiddity Leaderboard Dec 22: Top Ranked ASX200 ADDs Look Interesting
- In this insight, we take a look at the potential index changes for S&P ASX 200, 100, 50, and 20 in the run up to the December 2022 Rebalance.
- The top 5 highest ranked ASX 200 Potential ADDs have 10+ days to buy and a couple of these names could become intra-review additions.
- Pilbara Minerals (PLS AU) is an ASX 50 ADD and Lendlease Group (LLC AU) is an ASX 50 DEL as it stands.
EVOC’s H Share Class Meeting – And that Is a Pass
- EVOC Intelligent Technology Company Limited H (2308 HK)’s delisting resolution was approved – 81.20 % of independent H Share votes cast FOR (7.05% of all independent H Shareholders AGAINST).
- The gross spread recently increased from 2.9% (11 October) to 7.5% (13 October) due to nervousness about another failed privatisation attempt after two failed bids.
- The last trading date is 20 October. At last close and for the 7 November payment date, the gross and annualised spread to the offer is 5.4% and 164.7%, respectively.
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