In today’s briefing:
- Cascading Takeunders for INTUCH, ADVANC, and THCOM as GULF TB Seeks To “Restructure”
- GULF-INTUCH Amalgamation
- Taiwan Dual-Listings Monitor: TSMC Rebounds After Sharp Breakdown; ASE Major Premium Breakdown
- Kokusai Electric Placement Updates – Misbehaving
- GULF/INTUCH Merger & ADVANC/THCOM VTO’s
- Quiddity Leaderboard ChiNext & ChiNext 50 Dec 24: Multiple Ranking Changes; Double-Impacts for Some
- [Q2 Earnings Preview] Google: Ad Revenue & Cloud Growth Plus AI Advancements in Focus
- Tech Supply Chain Tracker (18-Jul-2024): GlobalWafers gets $400M CHIPS Act funds.
- ASML Holding N.V.: Will The Prebuilding Strategy to Manage Supply Chain and Demand Pay Off? – Major Drivers
- EB: TikTok a New Momentum
Cascading Takeunders for INTUCH, ADVANC, and THCOM as GULF TB Seeks To “Restructure”
- Last night, the Board of Intouch Holdings (INTUCH TB) announced an amalgamation with Gulf Energy Development (GULF TB) and Tender Offers for Advanced Info Service (ADVANC TB) (at THB 216.30)
- And Thaicom Pcl (THCOM TB) (THB 11.00) shares. This is really big news. It appears to try to cap years of re-arrangement of the capital structure. It’s complicated.
- But it is not fair. INTUCH shareholders lose 22% of earnings value per investment value in 2024. 20% in 2025. But, there may be a way to block it…
GULF-INTUCH Amalgamation
- The amalgamation will entail the ratios for allocations of shares in the NewCo to the shareholders of GULF and INTUCH as detailed below.
- The amalgamation process and the establishment of the NewCo are expected to be completed in 2Q25.
- The restructuring is aimed at reducing duplication in the shareholding structure and facilitating growth opportunities in the energy, infrastructure, and digital businesses.
Taiwan Dual-Listings Monitor: TSMC Rebounds After Sharp Breakdown; ASE Major Premium Breakdown
- TSMC: +17.9% Premium; Rebounds After Brief Breakdown; Wait for Better Levels
- UMC: +1.8% Premium; Can Consider Shorting the Premium at Current Level
- ASE: +5.5% Premium Represents a Major Breakdown; Can Consider Going Long
Kokusai Electric Placement Updates – Misbehaving
- KKR and KSP Kokusai Investments are looking to raise approximately US$1.7bn through an extended secondary follow-on offering, via selling approximately 22.3% of Kokusai Electric (6525 JP).
- We have looked at the lockup expiry and deal dynamics in our earlier notes.
- In this note, we talk about share price performance since then.
GULF/INTUCH Merger & ADVANC/THCOM VTO’s
- In 2021, Gulf Energy Development (GULF TB) made an offer to acquire all Intouch Holdings (INTUCH TB) shares at THB65/share. Singtel (ST SP) did not tender their then 21% stake.
- Now Gulf Energy Development (GULF) and Intouch Holdings (INTUCH) are looking to merge and that will result in VTO’s for Advanced Info Service (ADVANC TB) and Thaicom Pcl (THCOM TB).
- The merger will result in an inclusion to the SET 50 Index in the first quarter of 2025. There is the December rebalance before that.
Quiddity Leaderboard ChiNext & ChiNext 50 Dec 24: Multiple Ranking Changes; Double-Impacts for Some
- The ChiNext Index represents the performance of the 100 largest and most liquid A-share stocks listed on the ChiNext Market of the Shenzhen Stock Exchange.
- The ChiNext 50 index is a subset of the ChiNext Index and it consists of the top 50 names in the ChiNext index with the highest daily average turnover.
- In this insight, we take a look at our latest rankings for ADDs and DELs for the upcoming index rebal event in December 2024.
[Q2 Earnings Preview] Google: Ad Revenue & Cloud Growth Plus AI Advancements in Focus
- Google’s ad revenue growth consensus is 11.7% YoY in Q2, with some analysts projecting even higher, reflecting robust global digital ad spend trends.
- Google Cloud’s revenue reached $9.5 billion in Q1 2024, marking a 35% YoY increase and a 4x growth over the past four years. Q2 expected to see continued growth.
- AI investments and innovations showcased at Google I/O aim to boost user experience and market leadership, with potential double-digit growth.
Tech Supply Chain Tracker (18-Jul-2024): GlobalWafers gets $400M CHIPS Act funds.
- GlobalWafers secures $400M from CHIPS Act to boost semiconductor production amid global chip shortage.
- Samsung intensifies focus on wearable device sales with new strategies to adapt to declining demand in market.
- Acer targets Indian smartphone market with white-label approach and Qualcomm teams up with Microsoft to innovate PCs using AI technology.
ASML Holding N.V.: Will The Prebuilding Strategy to Manage Supply Chain and Demand Pay Off? – Major Drivers
- ASML Holding NV has released its financial results for the first quarter of 2024, highlighting a combination of achievements and forecasts that paint a detailed picture of the company’s current and future trajectory.
- In terms of financial performance, ASML reported total net sales of EUR 5.3 billion, which aligns with the company’s previous guidance.
- The revenue from 11 EUV (extreme ultraviolet) systems constituted EUR 1.8 billion of the total net sales.
EB: TikTok a New Momentum
- EB has teamed up with TikTok in an integration that could lead to a sharp increase in new creators and overall traffic on EB’s marketplace.
- TikTok announced on its blog that EB has been integrated to allow content creators to manage and promote events within their TikTok content.
- The integration would enable followers to purchase tickets to creators’ events straight from TikTok without having to leave the platform.
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