In today’s briefing:
- Tencent (700 HK): Board Meets Next Week; In-Specie Dividend Candidates
- Block Deal Sale of HYBE by Netmarble
- Bajaj Finance QIP – Very Well Flagged US$1bn Raising, past Deals Have Done Well
- OreCorp/Silvercorp: 8th December Shareholder Vote
- OreCorp (ORR AU): A Wide Spread Heading into the 8 December Vote
Tencent (700 HK): Board Meets Next Week; In-Specie Dividend Candidates
- Tencent (700 HK) announced in-specie dividends of JD.com (9618 HK) (US$15bn+) in 2021 and Meituan (3690 HK) (US$20bn) in 2022.
- With the Tencent (700 HK) Board meeting on 15 November to approve Q3 results and considering the payment of a dividend, the pattern could repeat this year.
- Tencent (700 HK) owns stakes of US$1bn+ in 10 listed companies. We take a look at the stocks that could be next in line to be paid as in-specie dividends.
Block Deal Sale of HYBE by Netmarble
- After the market close on 6 November, Netmarble announced that it will sell 2.5 million shares of HYBE which represents 569 billion won in amount at current price.
- The actual block deal amount is likely to be less than 569 billion won as there will likely be a block deal discount rate.
- We would avoid this deal, mainly because we think HYBE is overvalued relative to its peers.
Bajaj Finance QIP – Very Well Flagged US$1bn Raising, past Deals Have Done Well
- Bajaj Finance Ltd (BAF IN) , one of India’s largest NBFCs, aims to raise around US$1bn via a QIP.
- Bajaj Finance is an NBFC offering auto, consumer and home loans, along with other products as well.
- In this note, we run the deal through our ECM framework and talk about the deal dynamics.
OreCorp/Silvercorp: 8th December Shareholder Vote
- Back on the 6 August, Western Australian-based miner OreCorp Ltd (ORR AU) signed a Scheme Implementation Deed with Canada’s Silvercorp Metals (SVM CN).
- OreCorp shareholders are offered A$0.15 in cash and 0.0967 new Silvercorp shares – or an implied value of A$0.60 – for each OreCorp share held.
- The Scheme Booklet is out with a shareholder vote on the 8 December. Implementation is the 22 December.
OreCorp (ORR AU): A Wide Spread Heading into the 8 December Vote
- The Orecorp Ltd (ORR AU) IE considers Silvercorp Metals (SVM US)’s A$0.15 cash per share and 0.0967 SVM shares per ORR share offer fair and reasonable.
- The offer is subject to the Tanzanian Fair Competition Commission and shareholder approval. The offer is attractive compared to the adjusted exchange ratios and historical prices.
- While the offer has suffered from the steep SVM share price decline, there has been no visible dissent from major shareholders. At the last close, the gross spread was 12.1%.
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