In today’s briefing:
- Olam Teams Up With Saudi Arabia’s SALIC
- Uniti (UWL AU): Macquarie Hung Out To Dry As Morrison/Brookfield Up Bid
- Jin Jiang Capital (2006 HK): Tardy, But Pre-Con Approvals Were Never In Doubt
- Razer (1337 HK): Spread To Tighten On Potential Headcount Removal
- NIFTY Index Rebalance: Flows at the Close Today
- Razer’s Scheme Meeting on 26 April, Headcount Test Still Applicable, IFA Opinion
- Uniti’s Revised A$5.00 Offer from Morrison/Brookfield
- S&P BSE Indices (SENSEX Family): Quiddity Primer
- Krafton & Kakao Bank: Upweight-Triggered Combined Flow for MSCI Standard & KOSPI 200
Olam Teams Up With Saudi Arabia’s SALIC
- Ten days after Olam Group (OLG SP)‘s restructuring became effective, Saudi-backed SALIC, entered into an SPA to acquire 35.4% of Olam Agri (OGA).
- The proposed US$1.24bn investment implied an equity value of US3.5bn for the bulk agricultural commodity player.
- The OFI unit, which focuses on food ingredients (cocoa, coffee, nuts, and spices), is still seeking a listing in London. OGA is expected to go public six months after OFI.
Uniti (UWL AU): Macquarie Hung Out To Dry As Morrison/Brookfield Up Bid
- Morrison, now with Brookfield on a 50/50 basis, have matched Macquarie Asset Management’s Real Assets division / Public Sector Pension Investment Board’s $5.00/share Offer for Uniti Group Ltd (UWL AU).
- The revised proposal was predicated on Uniti severing talks with Macquarie as it may get access to competitively sensitive information. Uniti’s board has acquiesced – “at this time“.
- Share pulled back on the news and closed at a 7.8% gross spread to the indicative terms.
Jin Jiang Capital (2006 HK): Tardy, But Pre-Con Approvals Were Never In Doubt
- Hotel operator Shanghai Jin Jiang Capital Company Limited (2006 HK) announced yesterday that all pre-conditions to the Offer from Shanghai SASAC have been satisfied.
- The Composite Document is expected to be dispatched on or before the 1 April.
- Based on precedents for the privatisation of PRC incorporated companies, absent a tendering condition, payment is expected around the third week of May, on the assumption the vote gets up.
Razer (1337 HK): Spread To Tighten On Potential Headcount Removal
- Razer Inc (1337 HK)‘s Scheme Document is now out. The Court Meeting will be held on the 26 April. The IFA declares the Offer to be fair and reasonable.
- More importantly, the Document flags the abolishment of the headcount test may become law ahead of the shareholder meeting. That is a game-changer.
- Trading at a wide spread of 14.2%. This will narrow on this latest development.
NIFTY Index Rebalance: Flows at the Close Today
- The changes to the NIFTY Index (NIFTY INDEX), Nifty Bank Index (NSEBANK INDEX) and NIFTY NEXT50 Indices were announced on 24 February and will be implemented at the close today.
- There is a fair amount to trade on the NIFTY Index (NIFTY INDEX) and Nifty Bank Index (NSEBANK INDEX) stocks given the sizeable passive assets that track the indices.
- There is pre-positioning on some of the names and there could be opportunities to build positions to play for a reversal.
Razer’s Scheme Meeting on 26 April, Headcount Test Still Applicable, IFA Opinion
- Razer Inc (1337 HK)‘s scheme document is out with the scheme meeting scheduled for 26 April. The IFA considers the offer to be fair and reasonable.
- The headcount test, the key risk, applies unless the amended Cayman Islands Act becomes law before the court meeting date on 26 April. The legislative timetable has not been set.
- Current deal probability implies a 65% chance of success, which fairly reflects the deal risk in our view. At last close, the gross spread is 14.2%.
Uniti’s Revised A$5.00 Offer from Morrison/Brookfield
- The Morrison/Brookfield’s revised offer is A$5.00 cash per share which is in line with the offer from the Connect consortium. At last close, the gross spread is 7.8%.
- The Board has decided to engage with Morrison/Brookfield but not with the Connect consortium. The Connect Consortium is said to have walked away, according to press reports.
- Nevertheless, the emergence of another bidder cannot be ruled out as Uniti Group Ltd (UWL AU)’s recurring revenues, cash flows and strong balance sheet is enticing for private equity bidders.
S&P BSE Indices (SENSEX Family): Quiddity Primer
- The S&P BSE family of indices represents the performance of stocks listed on the Bombay Stock Exchange (BSE) across various sizes, themes, industries, and strategies.
- This series will mainly focus on the following indices of the S&P BSE family: S&P BSE 500, S&P BSE 200, S&P BSE 100, and S&P BSE SENSEX.
- In this insight, we take a brief look at the constituent selection methodology and the historical price performance of Index Rebalance Events for the above-mentioned indices.
Krafton & Kakao Bank: Upweight-Triggered Combined Flow for MSCI Standard & KOSPI 200
- By the 2nd Thursday of June, we can expect a passive inflow of 4.08x ADTV for Krafton. It represents 1.14M shares and amounts to ₩311B.
- Kakao Bank will face a passive inflow of 9.89x ADTV, representing 17.5M shares and close to ₩871B.
- With this kind of passive inflow size, they will likely act as a very substantial short-term stock momentum for Krafton and Kakao Bank.
Before it’s here, it’s on Smartkarma
