In today’s briefing:
- Goo Chemical (4962 JP) MBO – Super Illiquid Kyoto-Based Specialty Chems Maker – A Done Deal
- Last Week in Event SPACE: BHP, Bank Of East Asia, Sydney Airport, Boral
- Index Rebalance & ETF Flow Recap: MSCI, HSI, NIFTY 50/100/BANK, ASX200, PCOMP, KRX New Deal
- Asia-Pac Weekly Risk Arb Summary: Irongate, Virtus, ICar Asia, Aventus, Sydney Airport, CLPH
Goo Chemical (4962 JP) MBO – Super Illiquid Kyoto-Based Specialty Chems Maker – A Done Deal
- This is a PE Fund-sponsored MBO of a small Kyoto-based specialty chemicals manufacturer.
- It is far less liquid than the market cap would suggest, which tells you something about the very un-transparent shareholder register.
- This is theoretically an “independent” deal with a majority-of-minority but it will get done at a slightly too low price because of huge friendly shareholder base.
Last Week in Event SPACE: BHP, Bank Of East Asia, Sydney Airport, Boral
- If BHP Group (BHP AU) announces an off-market buyback, there will be demand to replace the shares bought back, re-based higher.
- Bank of East Asia (23 HK)is trading cheap as Elliott throws in the towel.
- The Sydney Airport (SYD AU) selldown could be larger than people expect, and it is a decent chance to put on the arb trade.
Index Rebalance & ETF Flow Recap: MSCI, HSI, NIFTY 50/100/BANK, ASX200, PCOMP, KRX New Deal
- The big event in the coming week is the MSCI Feb QIR announcement. Sydney Airport (SYD AU) will be deleted from indices after the close of trading on 9 February.
- There are quite a few changes expected across the NIFTY Index (NIFTY INDEX), Nifty Bank Index (NSEBANK INDEX) and NIFTY100 Indices. The PCOMP INDEX rebalances on 11 February.
- There were large inflows to Australia focused ETFs during the week, while Japan saw some pretty chunky outflows from a few ETFs.
Asia-Pac Weekly Risk Arb Summary: Irongate, Virtus, ICar Asia, Aventus, Sydney Airport, CLPH
- There are currently 46 – mostly firm – transactions currently being discussed and analysed on Smartkarma.
- Three new deals were discussed this week: Charter Hall (CHC AU) for Irongate (IAP AU); Daifuku (6383 JP) for Contec Co (6639 JP); Hinode for At Group Co (8293 JP).
- Keys updates took place for: Virtus Health (VRT AU), iCar Asia (ICQ AU), Aventus Group (AVN AU),Sydney Airport (SYD AU), and China Logistics Property Holdings (1589 HK)
Before it’s here, it’s on Smartkarma
