In today’s briefing:
- Recruit Buyback: An Attempt to Rescue Falling Share Price; Seems Like a Good Short
- Samsung Biologics Offering: Deal Summary & Trading Dynamics
Recruit Buyback: An Attempt to Rescue Falling Share Price; Seems Like a Good Short
- Recruit has announced a share buy-back on Friday of 34.0m shares (2.06% of outstanding shares) for JPY155.8bn, implying JPY4,581 per share.
- Recruit’s shares closed at JPY5,090 per share at the end of Thursday’s close, and following the announcement, shares moved up to JPY5,305 a piece, gaining 4.2%.
- We think Recruit’s shares will be a good Short over the next few days.
Samsung Biologics Offering: Deal Summary & Trading Dynamics
- Samsung Biologics announced that it would purchase all 10,341,852 shares of Samsung Bioepis owned by Biogen for ₩2.77T. For this, it also announced a ₩3T new share issuance.
- The discount rate is 15%, tighter than the usual 20%. Despite that, this offering still deserves attention from an arb perspective as we may see more forfeited shares than expected.
- Entry timing? I’ll aim at the rights trading window. As a short hedge, I will look at C&T, which is expected to have a higher price synch rate with Biologics.
Before it’s here, it’s on Smartkarma
