Daily Brief Financials: Huafa Property Services Group, Invincible Investment, Kyoto Financial Group , iShares 20+ Year Treasury Bond ETF, Cls Holdings and more

• Huafa Property Services Group (982 HK)’s IFA opines that Huafa Industrial Co., Ltd. Zhuhai (600325 CH)’s HK$0.29 privatisation offer is fair and reasonable. The vote is on 28 August. 
• Key conditions include approval by at least 75% of independent shareholders (<10% of independent shareholders rejection) and a headcount test. The offer price is final.
• No shareholder holding a blocking stake, low AGM minority participation rate and calm retail boards suggest low vote risk. At the last close, the gross/annualised spread is 9.4%/52.5%. 

• Invincible Investment (8963 JP) is looking to raise around US$375m in its primary follow-on offering. The proceeds will be used to partially acquire 12 assets from its Sponsor’s affiliates. 
• The REIT has been very active on the acquisition front, and has highlighted its ongoing discussions with its Sponsor for acquisitions. Thus, the current deal should be well flagged.
• In this note, we talk about the deal dynamics and run the deal through our ECM framework.

• Kyoto Financial’s stakes in three key listed Japanese corporates are valued at over 85% of its market capitalization with its total equity holdings accounting for 130%+ of its market capitalization
• Kyoto management intends to retain the bulk of the bank’s equity holdings, opposing the growing trend for Japanese listed companies to unwind crossholdings; management will review this policy in November
• In the near term, we see no major catalyst for Kyoto to accelerate its equity holdings unwind and so, combined with its underwhelming fundamentals, we are negative on Kyoto Financial

• Consider purchasing Nov 15th 2024 calls with a $100 strike price for TLT as a hedge against inflation and US debt concerns
• Analyst behind recommendation has seen success with asymmetrical portfolio hedges in the past, turning small investments into significant returns
• Investing in these calls could provide a sanity hedge and offensive strategy for the future, potential for significant gains if market trends continue as predicted

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

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• We cover the CLS’ key assets including Oasis Cannabis Dispensary, a popular retail cannabis store for locals and visitors.