In today’s briefing:
- China ADRs Delisting – SEC Sets the Clock Ticking and Sends China ADRs Tripping
- Thai Rayon (TR TB): IFA Rejects Surya Kiran’s Offer?
- KOSPI/KOSDAQ End-March Dividends: 1Q Fiscal Year-Ending, Interim(Quarterly), & REITs
- HAL Holding/Royal Boskalis Westminster: Opportunistic Voluntary Offer
China ADRs Delisting – SEC Sets the Clock Ticking and Sends China ADRs Tripping
- On 8th Mar 2022, Securities Exchange Commission (SEC) added five China ADR names to its provisional list of issuers under the Holding Foreign Companies Accountable Act (HFCAA).
- There is nothing new about the list, on 2nd Dec 2021, SEC had issued final amendments to implement the HFCAA which had already spoken about the list and its implications.
- In this note, we’ll talk about the latest developments its possible timelines and implications.
Thai Rayon (TR TB): IFA Rejects Surya Kiran’s Offer?
- After taking into account the IFA opinion, the directors of textile-play Thai Rayon Public Co Ltd (TR TB) unanimously reject Surya Kiran’s Offer.
- Surya Kiran is offering THB 50/share for the 79.33% of shares out in Thai Rayon it does not own. The Offer Price will not be increased.
- The Offer is currently open for acceptance and will close on the 25 March.
KOSPI/KOSDAQ End-March Dividends: 1Q Fiscal Year-Ending, Interim(Quarterly), & REITs
- We can consider three types of dividend stocks, targeting the March 31 dividend base date: 1. 1Q fiscal year-ending dividends, 2. Interim (quarterly) dividends, 3. REITs regular dividends
- The ex-dividend price corrections of fiscal year-ending dividend stocks have been pretty tight recently. In addition, the futures basis has not reached a desirable level either.
- So, either outright dividend trading or dividend arb play does not have much trade opening. So, I’d consider setting up a long/short basket trading, by focusing on high DTV ones.
HAL Holding/Royal Boskalis Westminster: Opportunistic Voluntary Offer
- On 10 March, HAL Holding announced an intended voluntary public €4.2 billion cash offer of €32.50/share. Coming from a subdued period for the industry, the multiples aren’t too generous: 8.0x EV/22e EBITDA.
- A 28% premium coupled with the current volatile market environment means that the offer is most likely to succeed. HAL and associated parties now control 48.9% of the shares.
- The median-implied equity value across multiples is €36.36/share, but investors are cashing out now: a vehicle set up by HAL is buying shares in the market at the offer price.
Before it’s here, it’s on Smartkarma
