In today’s briefing:
- FTSE All-World/All-Cap Index Rebalance Preview (June): IPO Inclusions Coming Up
- Western Areas: IGO Firm On Pricing As Nickel Soars
- Virtus Enters Into Firm Deal With CapVest
- Korean Financial Authorities Tighten IPO Requirements for Institutional Investors
- Softbank Sells $1.0 Billion Additional Worth of Coupang: Continued Overhang Concerns
- CapVest Inches past BGH in a Heated Takeover Battle for Virtus
FTSE All-World/All-Cap Index Rebalance Preview (June): IPO Inclusions Coming Up
- We see 20 potential inclusions to the FTSE All-World and All-Cap indices that will be implemented at the close of trading on 17 June. Most are high probability inclusions.
- LG Energy Solution (373220 KS), Kakao Pay (377300 KS) and Mitratel (MTEL IJ) are the top 3 stocks with the most passive inflows.
- There are a few stocks that will have passive inflows from other index trackers while there are others that have lock-up expiries from now to implementation of the changes.
Western Areas: IGO Firm On Pricing As Nickel Soars
- IGO Ltd (IGO AU) said it has no obligation, nor any current intention to increase the consideration for Western Areas (WSA AU) in response to recent short-term events.
- The Scheme timetable is, however, expected to face a short delay with implementation in May/June compared to April previously.
- Currently trading comfortably through terms, as it has done since shortly after the invasion of Ukraine.
Virtus Enters Into Firm Deal With CapVest
- Virtus Health (VRT AU) gives the nod to CapVest as the latter bumps to $8.25/share – less dividends – by way of a Scheme
- CapVest will also make a concurrent off-market takeover Offer at $8.10, less dividends. This Offer can be triggered if the first Offer fails, and would only require 50.1% shareholder approval.
- Trading one spread below CapVest’s firm Scheme terms. Back in BGH’s court. Again.
Korean Financial Authorities Tighten IPO Requirements for Institutional Investors
- On 11 March, Korea Financial Investment Association (KFIA) announced that it will tighten IPO requirements for institutional investors.
- This is likely to further dampen the local IPO market in Korea which has been in the doldrums after the biggest-ever IPO in Korea LG Energy Solution two month ago.
- As a result of the change in the IPO requirements for institutional investors, this is likely to to negatively impact smaller investment funds without adequate amount of AUM.
Softbank Sells $1.0 Billion Additional Worth of Coupang: Continued Overhang Concerns
- On 14 March, it was reported that Softbank’s Vision Fund sold about 1.3 trillion won ($1.04 billion) worth of Coupang (CPNG US) shares on 9 March in a block deal.
- The continued selling of Coupang shares by Softbank suggests that Softbank is not confident on the future prospects of the company. We remain negative on Coupang.
- Another reason could be because Softbank needs to raise more cash to make up for the losses from its other investments (mainly Chinese tech companies).
CapVest Inches past BGH in a Heated Takeover Battle for Virtus
- CapVest’s binding offer is A$8.25 via a scheme or A$8.10 via an off-market takeover. The scheme offer is a 5.8% premium to its previous scheme offer of A$7.80 per share.
- Rival bidder BGH lobbed a revised non-binding offer of A$8.10 per share after market close on 10 March. The Board will consider any further improved competing offer.
- BGH (19.99% stake) previously stated that it will vote against a CapVest scheme and will not accept any takeover offer. Another round of bidding is a possibility.
Before it’s here, it’s on Smartkarma
