In today’s briefing:
- PCOMP Index Rebalance: EMP, MONDE Could Pop; BLOOM, RRHI Could Drop
- Time Interconnect (1729 HK): Possible Offer
- CLPH (1589 HK): Composite Doc Out. Offer Now Open
- AT Group (8293 JP) MBO – Looks Fully Priced But A Closer Look Is Warranted
- Seven & I’s Response: Dispels Accusations But Gives in to ValueAct’s Demands
- Daifuku (6383) To Take Out Minorities in Subsidiary Contec (6639)
- CPI/Immofinanz: CPI Matches S Immo’s Offer and Secures Another Stake
PCOMP Index Rebalance: EMP, MONDE Could Pop; BLOOM, RRHI Could Drop
- Emperador Inc (EMP PM) and Monde Nissin Corp (MONDE PM) will replace Bloomberry Resorts (BLOOM PM) and Robinsons Retail Holdings (RRHI PM) in the Philippines Stock Exchange PSEi Index (PCOMP).
- There will be a lot to trade from passive funds. Implementation will take place at the close on 11 February – there are only 5 days to go.
- Emperador Inc (EMP PM) has rallied over the last month while the deletions have traded lower. As re-opening plays, the passive selling could provide an opportunity to buy the deletes.
Time Interconnect (1729 HK): Possible Offer
- Time Interconnect Technology (1729 HK) is currently suspended “pursuant to The Hong Kong Code on Takeovers and Mergers“.
- Paul Lo, the chairman, recently increased his stake to ~75% of shares out. A large parcel of shares moved into CCASS late last month.
- Paul Lo, if he is the Offeror, is unlikely to table an Offer price significantly higher than the last close, given the recent price increase. A take under is possible.
CLPH (1589 HK): Composite Doc Out. Offer Now Open
- China Logistics Property Holdings (1589 HK)‘s Composite Document has now been despatched. The Offer is open for acceptance with a first close on the 25 February.
- The Offer from JD.com is conditional on 50% acceptances, with 66.4% in the bag.
- Done deal and trading through terms. The IFA considers the Offer is fair and reasonable.
AT Group (8293 JP) MBO – Looks Fully Priced But A Closer Look Is Warranted
- The CEO and family leader Yamaguchi-san is launching an MBO to take out one of the largest Toyota dealers out there.
- Optically, it looks fully-priced, with significant net debt and a 74% takeover premium. A closer look is, however, warranted.
- This is large enough (despite illiquidity) to be interesting, and it could get interestinger.
Seven & I’s Response: Dispels Accusations But Gives in to ValueAct’s Demands
- Seven & I Holdings (3382 JP) is down 2.71% today following the company’s response to ValueAct’s public letter.
- We think this share price move is unwarranted and driven by a false interpretation that Seven & I’s response is a rebuttal.
- Therefore, we would be using this as an opportunity to add more Seven & I shares.
Daifuku (6383) To Take Out Minorities in Subsidiary Contec (6639)
- Daifuku Co Ltd (6383 JP) today (4 Feb) announced it would take out TSE-2 industrial computing/IoT subsidiary Contec Co Ltd (6639 JP) in a tender offer at 55% premium.
- That looks nice, and should have been expected at some point. But it is only half-generous.
- The shareholder structure tells you how this is likely to end up.
CPI/Immofinanz: CPI Matches S Immo’s Offer and Secures Another Stake
- CPI advances in its takeover and already owns 19.25% of the share capital of Immofinanz, with 28.92% conditionally contracted (at €23/share), thus a combined stake of 48.18% of Immofinanz.
- The raised offer price also represents 19.7x EV/Fwd EBIT, 18.4x Fwd P/E, 22.9x deal value/Est. FFO and 76.7% deal value/consensus NAV (source Capital IQ), still not recommended by Immofinanz’s Board.
- Immofinanz trades at at 4.3% 22e FFO yield and 3.4% 22e dividend yield. My TP, economic profit based is €25.86/share, 12.2% discount to EPRA NTA. Recommendation is long IIA AV.
Before it’s here, it’s on Smartkarma
