In today’s briefing:
- Last Week in Event SPACE: Sembcorp/Keppel, Razer, Hitachi Transport, Renesas, CNOOC
- Index Rebalance & ETF Flow Recap: MSCI, S&P/ASX, STI, Sensex, Kotak Bank, SMM/KEP O&M, LIC
- Asia-Pac Weekly Risk Arb Wrap: Hitachi Transport, SPH Reit, Toyo Construction, True/DTAC
- SKC Co: Formation of an Intermediate Holding Company
Last Week in Event SPACE: Sembcorp/Keppel, Razer, Hitachi Transport, Renesas, CNOOC
- Keppel (KEP SP) and Sembcorp (SMM SP) have announced the O&M business combination and it is a little more interesting than expected. It is a Very Big Desirable Order Book.
- Razer Inc (1337 HK)was trading at a 8% gross spread to terms a day before the vote, on headcount test concerns. But it was even close.
- 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).
Index Rebalance & ETF Flow Recap: MSCI, S&P/ASX, STI, Sensex, Kotak Bank, SMM/KEP O&M, LIC
- Last Friday was the last day of the review period for the MSCI May SAIR, Shanghai Shenzhen CSI 300 Index, STAR50 INDEX, KOSPI2 INDEX, KOSDAQ 150 Index and SENSEX INDEX.
- We expect Yangzijiang Financial Holding (YZJFH SP) will be deleted from the FTSE Straits Times Index (STI) (STI INDEX) at the close on 4 May.
- ETFs focused on China, Taiwan and Hong Kong had inflows during the week while there were outflows on Korea focused ETFs.
Asia-Pac Weekly Risk Arb Wrap: Hitachi Transport, SPH Reit, Toyo Construction, True/DTAC
- There are 36 – mostly firm – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
- Five new deals this week involving Hitachi Transport (9086 JP), Lanzhou Zhuangyuan Pasture (1533 HK), Beijing Enterprises Urban (3718 HK), SPH REIT (SPHREIT SP), and Shin Keisei Electric Railway (9014 JP).
- Key updates took place for: Western Areas (WSA AU), Guodian Technology & Environment Group (1296 HK), Toyo Construction (1890 JP), True Corp (TRUE TB) / Total Access Communication (DTAC TB).
SKC Co: Formation of an Intermediate Holding Company
- SKC Co Ltd (011790 KS) announced on 29 April that it plans to change into an intermediate holding company.
- We believe that the formation of an intermediate holding company structure could have a negative impact on SKC’s share price.
- This is because some investors may be concerned that SKC may try to complete IPOs of some of its valuable subsidiaries including SKCFT Holdings without adequate protection for SKC shareholders.
Before it’s here, it’s on Smartkarma
