In today’s briefing:
- Toyota’s New Shareholder Benefit Program – Either a Bribe for Retail or Odd Advertising
- Biggest Gray Area in Korea’s Short-Selling Overhaul: What Should TRS Clients Do?
- Japan CorpGovReports: TSE “Mgmt Conscious Blah Blah” (Mar25),
Read TSE Update Doc 3 - PointsBet (PBH AU): A Tussle Between MIXI (2121 JP) And Bluebet (BBT AU)
- OneConnect Financial (6638 HK/OCFT US): Negative EV Play Draws an Opportunistic Offer from Ping An
- OneConnect Financial (6638 HK/OCFT US): Ping An’s Fair NBIO
- Selected European HoldCos and DLC: February 2025 Report
Toyota’s New Shareholder Benefit Program – Either a Bribe for Retail or Odd Advertising
- Today, Toyota Motor (7203 JP) announced a new Shareholder Benefit Program (株主優待 or kabunushiyutai). Often these programs are designed to give small unknown companies a way to build shareholder awareness/loyalty.
- Toyota, needless to say, is not a small, unknown company building awareness. So this is a bribe or inducement to own shares or get people to use higher value product.
- This is not a great look, and not great for shareholders. It smells of Toyota trying to buy votes as crossholders sell. But below we look at the math.
Biggest Gray Area in Korea’s Short-Selling Overhaul: What Should TRS Clients Do?
- If brokers let shorts exceed borrow, TRS end investors risk getting caught in the legal crossfire.
- Some TRS players are setting up short-book systems and reg numbers proactively, ensuring brokers share borrow data to stay ahead of any compliance risks.
- With most illegal shorts tied to TRS, and TRS dominating the market, the FSS will likely introduce TRS-specific rules rather than granting exemptions.
Japan CorpGovReports: TSE “Mgmt Conscious Blah Blah” (Mar25), Read TSE Update Doc 3
- TSE-Listed companies are asked to file “Management Conscious of Capital Cost/Stock Price” awareness reports/policies. Many have. Some are still working on it. And policies change, and CGR reports are updated.
- 161 new CGRs were filed in February 2025. Our tools show every report, links to every document, and now a new diff file tool. Input a name, see the changes.
- THE BIG NEWS: The “Document 3” (linked below) of the TSE’s 20th Council Meeting 18 Feb is worth reading carefully. This will set the stage for more takeover fun.
PointsBet (PBH AU): A Tussle Between MIXI (2121 JP) And Bluebet (BBT AU)
- On 26 February, PointsBet Holdings (PBH AU) entered a scheme implementation deed with Mixi Inc (2121 JP) at A$1.06, a 27.7% premium to the undisturbed price of A$0.83 (25 February).
- Subsequently, BlueBet Holdings (BBT AU) disclosed a competing non-binding cash-and-scrip offer worth a combined equity value of A$340-360 million or A$1.02-1.09 per PBT share.
- BlueBet has limited headroom to engage in a bidding war, particularly as its share price weakens. The share price already factors in a potential bump from Mixi.
OneConnect Financial (6638 HK/OCFT US): Negative EV Play Draws an Opportunistic Offer from Ping An
- Oneconnect Financial Technology (6638 HK) disclosed a preliminary non-binding privatisation offer from Ping An Insurance (H) (2318 HK) at HK$2.068 (US$7.98 per ADS), a 72.33% premium to the undisturbed price.
- Despite the hefty premium, the offer is opportunistic as it values OneConnect around net cash and is at a material discount to historical trading ranges.
- If a binding proposal materialises, the offer price will not be increased. A high minority participation rate could be an issue for the vote.
OneConnect Financial (6638 HK/OCFT US): Ping An’s Fair NBIO
- Dual-Listed OneConnect Financial Technology (6638 HK/OCFT US), a digital retail banking/commercial banking/ digital insurance play, has announced a non-binding proposal from Ping An, OneConnect’s controlling shareholder with 32.12%.
- Ping An is offering, by way of a Scheme, HK$2.068/share, or US$7.98/ADS, a 72.33% premium to last close, and a 131.66% premium to the 30-day average. The price is final.
- What now? Back in OneConnect’s boards’ court whether to engage or not. Which they should. No competing Offer will emerge.
Selected European HoldCos and DLC: February 2025 Report
- Discounts to NAV of covered holdcos didn’t follow a clear trend during February 2025. Discounts to NAV: C.F.Alba, 14.1% (vs. 12.9% as of 31 January 2025); GBL, 38.7% (vs. 40%);
- Heineken Holding, 13% (vs. 13.2%); Industrivärden C, 5.1% (vs. 3.0%); Investor B, 2.3% (vs. 4.5%); Porsche Automobile Holding, 38.1% (vs. 36%). Rio DLC spread tightened to 17% (vs. 20.3%).
- What seems interesting (unchanged views): Porsche SE vs. listed assets and the Rio DLC (long RIO LN/short RIO AU).
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