In today’s briefing:
- Sabana REIT (SSREIT SP): Partial Offer from Volare
- Last Week In SPACE: Bank of Kyoto, WM Motors, Japanese Banks, Hong Kong Aerospace, CP ALL/MAKRO
- The Dollar O’ Meter #1 – 5 Ways to Gauge the Usd Outlook
- China Internet Investment Finance’s (810 HK): A Vague Offer Leads to a Sinking Feeling
Sabana REIT (SSREIT SP): Partial Offer from Volare
- Sabana Industrial REIT (SSREIT SP) disclosed a partial offer from Volare to acquire a maximum of 109.6 million units at $0.465 per unit, a 9.4% premium to the undisturbed price.
- The partial offer is conditional on minimum acceptances representing 10.00% of outstanding units. Quarz Capital, the activist fund, says the offer is attractive.
- ESR Group (1821 HK), the sponsor, is unlikely to tender. Based on a proration of 13.54% and at the last close price of S$0.425, the breakeven price is S$0.420.
Last Week In SPACE: Bank of Kyoto, WM Motors, Japanese Banks, Hong Kong Aerospace, CP ALL/MAKRO
- Japanese banks are the hottest new thing but unless you think Bank of Kyoto is going to change its spots, it’s still best thought of as a range trade.
- WM Motors opts for a backdoor listing via merging with WE Solutions Limited (860 HK). There’s probably a good reason for doing so.
- You pay for the liquidity of Japanese banks by paying a higher PBR against not as much improvement in ROE. That’s life.
The Dollar O’ Meter #1 – 5 Ways to Gauge the Usd Outlook
- Our models suggest that we should see further weakness in the USD in the coming months.
- Expected interest rate divergence (EU/US) would, all else equal, strengthen the Euro relative to the Dollar.
- Another source of dollar weakness can be attributed to the rise in the Chinese credit impulse.
China Internet Investment Finance’s (810 HK): A Vague Offer Leads to a Sinking Feeling
- China Internet Investment Finance Holdings (810 HK)/CIIF disclosed that it received a letter from a potential offeror, stating that it is considering making a voluntary conditional cash offer.
- The possible offer will have two conditions – a 50% minimum acceptance condition and that the shares remain listed. No price or timeline has been disclosed.
- An offer if it materialises, will likely be a take-under due to the presence of a willing seller (Chairman) seeking a liquidity event and CIIF’s unjustified share price run.
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