In today’s briefing:
- MBK’s ConnectWave Tender Offer: Details & Trading Angles
- Connect Wave: Tender Offer of 30% of Shares by MBK Partners
- Taiwan Dual-Listings Monitor: TSMC & ASE Spreads Surge to Extremes; CHT Shorts Massing Pre-Earnings
- Mediatek Seeing Massive Rebound in Mobile; Major AI Data Center Driver on the Horizon
- Taiwan Tech Weekly: Major Week of Earnings; Apple’s Edge AI Could Make Your Current IPhone Obsolete
- Tencent/Netease: Game Approval Rotate to Netease in April
- ECM Weekly (29th Apr 2024) – IDEA, Kokusai, J&T, Krafton, Horizon, Oceana, ChaPanda, 99 Speed, Afcon
- Time to Tiptoe Back Into Big Tech?
- Playtech (Ptec) – Sunday, Jan 28, 2024
- Mapping New Territory
![](http://www.smartkarma.com/assets/plugins/a3-lazy-load/assets/images/lazy_placeholder.gif)
MBK’s ConnectWave Tender Offer: Details & Trading Angles
- MBK Partners will launch a tender offer for ConnectWave from today to May 24th. The target volume is 16.6M shares (40% of SO) at ₩18,000 per share, a 15.6% premium.
- MBK commits to acquiring all tendered shares, regardless of subscription rates, in order to expedite the delisting process. So, there is no cancellation or allocation risk.
- ConnectWave’s retail investor base, with high entry prices, may hinder reaching 70% of the target volume. Absence of risks suggests considering buy positions for potential secondary tender offer.
Connect Wave: Tender Offer of 30% of Shares by MBK Partners
- After the market close on 26 April, it was reported that MBK Partners has launched a tender offer of a 29.61% stake of Connectwave (119860 KS).
- The tender offer price is 18,000 won, which is 15.6% higher than the closing price (15,570 won) of the company on 26 April.
- The tender offer period is from 29 April to 24 May. The amount of the tender offer is about 300 billion won.
Taiwan Dual-Listings Monitor: TSMC & ASE Spreads Surge to Extremes; CHT Shorts Massing Pre-Earnings
- TSMC: Premium Soars to +15.2%, Good Level to Consider Shorting the Spread
- UMC: Spread Bounces from Lows to Relatively Extreme High of +1.9%; Good Level to Short
- ASE: Spread Soars to Near All-Time High of +15.5%; Consider Shorting the Spread
Mediatek Seeing Massive Rebound in Mobile; Major AI Data Center Driver on the Horizon
- Mediatek Enjoying a Massive Rebound for its Mobile Phone Segment; Most Optimistic About High-End Smartphone Demand
- New AI Data Center Growth Driver on the Horizon; Recent Investment in U.S. AI Server Chip Startup
- Recent Share Price Dip is an Accumulation Opportunity; We Rate Mediatek as a Structural Long
Taiwan Tech Weekly: Major Week of Earnings; Apple’s Edge AI Could Make Your Current IPhone Obsolete
- Taiwan Tech Rebounds Sharply Alongside Major Nvidia/U.S. Tech Rebound Last Week. Wave of Major Earnings Releases This Week — See Our Key Events Section.
- Apple’s Latest Supplier List Released Last Week — Nanya Tech, Lotes, and Novatek Dropped. New List Shows Apple Struggling to Diversify from China.
- Apple iOS 18 Will Heavily Feature Edge AI Running Locally on the iPhone for User’ Privacy and Security — We Believe This Could Be a Major Driver of Phone Upgrades
Tencent/Netease: Game Approval Rotate to Netease in April
- China announced game approval for the April batch. The number of games approved remained at a higher level than 2023.
- The pace of China game approval appears to have accelerated to the same level as pre-tightening, though the number of approvals appears to be slower than March.
- While Tencent scored zero, Netease got approval for one game.
ECM Weekly (29th Apr 2024) – IDEA, Kokusai, J&T, Krafton, Horizon, Oceana, ChaPanda, 99 Speed, Afcon
- Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
- On the IPO front, Sichuan Baicha Baidao Industrial (2555 HK) and Mobvoi (2438 HK)‘s listing doesn’t really help the HK sentiment.
- On the placement front, Vodafone Idea (IDEA IN) managed to do well, while Krafton (259960 KS) followed Samsung Electronics (005930 KS) footsteps.
Time to Tiptoe Back Into Big Tech?
- Big Tech has been lagging the market since February and the relative performance reset is nearing an end. The overall stock market is undergoing a bottoming process.
- Investment-Oriented accounts should be accumulating positions at these levels, but should be prepared for some near-term choppiness.
- Tactically, we are inclined to overweight value over growth stocks for short-term performance.
Playtech (Ptec) – Sunday, Jan 28, 2024
- Playtech is recommended as a long investment due to its undervalued status and strong financial position
- The company has divested non-core assets and shifted focus to two profitable segments, including a B2B software and services provider and a leading B2C gaming operator in Italy under the Snaitech brand
- Playtech’s Snaitech segment is considered a crown jewel in its portfolio, with significant market share in Italy and potential for share price to triple over the next 3 years
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.
Mapping New Territory
- The last week of SPACs was packed with activity including buyouts, amendments, and terminations.
- A digital mapping firm gets a boost with an acquisition by a Real Estate firm, and a Rare Earth mining-focused firm rejects a buyout from a SPAC.
- Also, a SPAC lowers the valuation of a deal with a biotech firm, and a UK-based blank-cheque firm terminates a deal with an engineering business.