In today’s briefing:
- Hitachi Transport System (9086) Shareholders Get the BIG Win in This VLBO
- Straits Times Index (STI) Rebalance Preview: YZJFH Is the Delete
- CNOOC (883 HK) Surprises with Special Div
- ToyoKen (1890)- Infroneer Declines to Bid Up, YFO Now In Driver’s Seat – Now It’s A Range Trade
- HSCEI Dividend Futures: CNOOC Special Drives 2022 Fair Value Higher, 22/23 Steepener Lower
- Western Areas: 1st June Scheme Meeting. BHP’s Competing Offer Looking Remote
- Beijing Enterprises Urban (3718 HK)’s Curious And Underwhelming Offer
- JPX-Nikkei 400 Rebalance 2022: Leaderboard End-Apr 2022
- SPH Scheme Elections In – SPH REIT Chain Offer Announced
- KOSDAQ 150 Rebalancing: Changes & Passive Impacts
Hitachi Transport System (9086) Shareholders Get the BIG Win in This VLBO
- KKR and Hitachi Ltd (6501 JP) have a deal to get KKR to buy Hitachi Transport System (9086 JP) in a VLBO (Very Leveraged BuyOut).
- As somewhat expected, it is a “split price deal” where Hitachi will accept a lower price for its 40% stake than minorities will receive in a Tender Offer.
- This is a big win for Hitachi Transport shareholders, but the Tender Offer likely won’t start until late September.
Straits Times Index (STI) Rebalance Preview: YZJFH Is the Delete
- Yangzijiang Financial Holding (YZJFH SP) started to trade on the SGX today following its spin-off from Yangzijiang Shipbuilding (YZJSGD SP). YZJFH’s last price was S$0.65/share.
- The FTSE Straits Times Index (STI) (STI INDEX) currently has 31 members and the lowest ranked constituent by full market cap at the close today will be deleted.
- At current prices, Yangzijiang Financial Holding (YZJFH) will be deleted from the FTSE Straits Times Index (STI) (STI INDEX) at the close on 4 May. Comfortdelgro avoids deletion for now.
CNOOC (883 HK) Surprises with Special Div
- CNOOC Ltd (883 HK) released fantastic, above-consensus earnings for Q1, which were minimally impacted (positively) by non-recurring profits.
- The driver was higher gas production on much higher prices. At current price, the implied PER is 3.0x for 2022.
- And the company also announced a Special Dividend of HK$1.18/share or 10.9% of yesterday’s share price.
ToyoKen (1890)- Infroneer Declines to Bid Up, YFO Now In Driver’s Seat – Now It’s A Range Trade
- Toyo Construction (1890 JP) today released a change to its Target Opinion Statement for Infroneer’s takeover bid at ¥770/share. It supports the tender itself, but withdraws its recommendation investors tender.
- Infroneer refused to raise their price, so this effectively kills their bid (though they will extend). TC will engage with Yamauchi Family Office which has separately offered to bid ¥1,000/share.
- The dynamics have now changed. This is a range trade, and will likely take time unless Infroneer says “I’ll sell at ¥1,000/share.”
HSCEI Dividend Futures: CNOOC Special Drives 2022 Fair Value Higher, 22/23 Steepener Lower
- Last evening CNOOC Ltd (883 HK) announced a special div of HK$1.18/share – that is higher than market expectations. JD.com Inc. (9618 HK) could announce a special div next week.
- Fair value for the HSCEI 2022 dividend futures moves higher to 250 DIPS off the back of CNOOC Ltd‘s special div and the estimated JD.com Inc. (9618 HK) special div.
- The HSCEI 2022/23 steepener had dropped to -29 yesterday and should drop even lower today where we could see some covering.
Western Areas: 1st June Scheme Meeting. BHP’s Competing Offer Looking Remote
- Western Areas (WSA AU) has registered the Scheme Booklet with ASIC. The Scheme Meeting to vote on IGO Ltd (IGO AU)‘s Offer will be held on the 1 June.
- On the 11 April, IGO bumped its Offer Price (last and final) by 15.2% to A$3.87 from A$3.36. WSA’s board unanimously recommends shareholders vote in favour of the Revised Scheme.
- The Independent Expert (IE) has concluded the Scheme is not fair but reasonable. Still no word from BHP Group Ltd (BHP AU). WSA trading tight to terms.
Beijing Enterprises Urban (3718 HK)’s Curious And Underwhelming Offer
- Beijing Enterprises Urban Resources (3718 HK) (BEUR) has announced a mandatory general cash offer from Beijing Enterprises Water Group (371 HK) (BEW).
- This Offer was triggered by BEW increasing its stake to 31.23% from 29.97%. The Offer price is HK$0.78/share, a zero premium to last close and 20% above the 30-day average.
- This is an underwhelming privatisation Offer. BEUR traded through terms as recent as last November. The Offer price has not been declared final.
JPX-Nikkei 400 Rebalance 2022: Leaderboard End-Apr 2022
- JPX-Nikkei 400 is composed of common stocks listed on the Tokyo Stock Exchange. It is a free-float-adjusted market-value-weighted (capped) index composed of 400 constituents.
- A periodic review is conducted by the Index providers, the JPX Group and Nikkei Inc, in August every year. We look at the potential forward inclusions and removals every month.
- Below is a look at potential Inclusions and Removals for the JPX-Nikkei 400 Rebalance to come in August 2022 based on trading data as of end-April 2022.
SPH Scheme Elections In – SPH REIT Chain Offer Announced
- Singapore Press Holdings (SPH SP) 58% to 42% to take cash instead of cash + SPH REIT units.
- That was to be expected, but it means Cuscaden owns 47+% of SPH REIT and needs to conduct a Conditional Chain Offer on SPH REIT at S$0.9372/unit.
- That provides a put option under SPH REIT for holders/buyers as Singapore opens up.
KOSDAQ 150 Rebalancing: Changes & Passive Impacts
- The KOSDAQ 150 rebalancing in June will have nine adds and deletes, respectively.
- Additions: Vidente (121800), GOLFZON (215000), Hana Micron (067310), Danal (064260), Intellian Technologies (189300), Advanced Nano (121600), Neoimmunetech (950220), NKMax (182400), & WYSIWYG (299900)
- Deletions: Toptec (108230), Danawa (119860), Optoelectronics Solutions (138080), Unison (018000), Daea Ti (045390), AP Systems (265520), Seojin System (178320), Wonik Holdings (030530), & Rsupport (131370)
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