In today’s briefing:
- Metro Pac (MPI PM): Delisting Offer from First Pac & Co
- We Should Aim at Kiwoom Securities’ Potential Legal Risk-Induced Stock Price Decline
- Metro Pacific Investments (MPI PM): PHP4.63 Delisting Tender Offer
- Bank Negara Indonesia (BBNI IJ) – Quality Focus by Digital Means
- Leveraging LSDs: The Next Era of Lending and Borrowing
Metro Pac (MPI PM): Delisting Offer from First Pac & Co
- First Pacific Co (142 HK), together with three other entities, are proposing to delist Metro Pacific Investments Co (MPI PM) at PHP 4.63/share, a 22% premium to the 12-month VWAP.
- The four bidders hold a combined stake in MPIC of 63.4%. The Offer is conditional on First Pac shareholder approval, a tendering threshold, and an MPIC shareholder vote.
- Elsewhere, First Pac continues to trade cheap to its NAV. Nothing new there.
We Should Aim at Kiwoom Securities’ Potential Legal Risk-Induced Stock Price Decline
- The recent matched order operation’s ringleader called in local major broadcasting companies for an interview and claimed the sell orders through SG on Monday were not from their CFD accounts.
- The trigger is Kiwoom Securities’ Chairman Kim, who created a continuous and rapid decline in stock prices and led to a vicious cycle of endless margin calls and covering orders.
- Rather than fishing for a bottom for the eight stocks from this point on, it seems necessary to actively design positions aimed at Kiwoom Securities’ legal risk-induced stock price decline.
Metro Pacific Investments (MPI PM): PHP4.63 Delisting Tender Offer
- Metro Pacific Investments Co (MPI PM) disclosed a voluntary delisting tender offer from a consortium at PHP4.63 per share, an 8.7% premium to the undisturbed price (26 April).
- The offer is conditional on shareholder approval and meeting the threshold for voluntary delisting (95% of outstanding shares) or obtaining an exemptive relief from the PSE.
- The shareholder approval and delisting threshold require around 73% and 86% acceptance rate, which is a risk as the offer is far from a knockout bid.
Bank Negara Indonesia (BBNI IJ) – Quality Focus by Digital Means
- Bank Negara Indonesia achieved a strong set of 1Q2023 numbers despite moderate loan growth, where the headline masked some significant growth areas, whilst asset quality improvements led to lower provisions.
- The bank continues to stride ahead with its digital initiatives with a multi-touchpoint approach, which has led to increased transactions and a positive impact on CASA and hence funding costs.
- Bank Negara Indonesia remains an interesting proxy to the overall Indonesian economy through its high exposure to corporate and consumer lending. Valuations are attractive on 1.1x PBV for 15% ROE.
Leveraging LSDs: The Next Era of Lending and Borrowing
- The best design often goes unnoticed. DeFi lending and borrowing stalwarts Aave and Compound have proven themselves to be great design: critical for day-to-day functioning but largely taken for granted.
- This becomes apparent when a competitor experiences an exploit, highlighting the reliability of Aave and Compound
- When last we checked in on these protocols in December they were in a period of change.
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