In today’s briefing:
- Surging Buzz Around the Potential Split of Samsung Electronics
- Tokyo Metro (9023 JP): One Miss; A Bigger Index Inclusion Coming?
- India: Potential Free Float Changes & Passive Flows in November
- Auswide Bank (ABA AU)/ MyState (MYS AU) Merger: A Done Deal
- Quiddity Leaderboard F100/F250 Dec 24: Thoughts Deliveroo and Coca-Cola; More Intra-Review Changes
Surging Buzz Around the Potential Split of Samsung Electronics
- We’re starting to see some local market players getting ready and setting up trades that bet on a potential split for Samsung Electronics.
- Samsung could leverage the buzz around spinning off its foundry business to split key units—foundry, memory chips, and others—into two or three separate companies at the shareholder meeting.
- Additionally, the valuation gap between Samsung Electronics and Biologics has narrowed more than it has in the last decade, making it an even more attractive opportunity.
Tokyo Metro (9023 JP): One Miss; A Bigger Index Inclusion Coming?
- Tokyo Metro (9023 JP) had a blockbuster listing yesterday, finishing the day 45% higher. That took the estimated div yield down from 3.33% (at the IPO price) to 2.3%.
- One expected index inclusion will not take place due to insufficient information on IPO allocations and that leads to a much lower free float than expected.
- That inclusion will now be deferred to June; BUT there could be two other (bigger) index inclusions on the cards prior to that.
India: Potential Free Float Changes & Passive Flows in November
- Companies in India have disclosed their shareholding pattern as of end-September in October. There are companies with significant float changes from end-March and/or end-June.
- The changes in free float could be reflected in domestic and global indices over the next few weeks and months resulting in action from passive trackers.
- Depending on the date that the shareholding was published, there could be 11 stocks with passive inflows from global trackers while 6 could see passive outflows in November.
Auswide Bank (ABA AU)/ MyState (MYS AU) Merger: A Done Deal
- The Auswide Bank (ABA AU) IE has considered Mystate Ltd (MYS AU)’s all-scrip merger offer in the best interests of the Auswide shareholders. However, the opinion comes with caveats.
- The offer is conditional on Auswide shareholder and regulatory approvals (ACCC, Treasury). The scheme meeting is on 2 December.
- Vote risk is low due to the lack of substantial shareholders and the disinterested retail base. At the last close and for 18 December payment, the gross/annualised spread was 1.6%/10.3%.
Quiddity Leaderboard F100/F250 Dec 24: Thoughts Deliveroo and Coca-Cola; More Intra-Review Changes
- In this insight, we take a look at the potential ADDs and DELs for the F100 and F250 indices during the December 2024 index rebal event.
- Separately, we see multiple M&A-related intra-review changes in the next few months.
- There could also be more regular changes during the December 2024 rebalanced event
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