In today’s briefing:
- Nikkei 225 Rebalance Day – Shinsei Dip Chance?
- China Conch (586 HK): Post-Spinoff Blues
- Toyo Construction (1890) Funkier Still
- CSC/Intertrust: Start of Offer Period
Nikkei 225 Rebalance Day – Shinsei Dip Chance?
- The Nikkei 225 Rebalance to boot Shinsei Bank (8303 JP) and add Orix Corp (8591 JP) occurs today at the close.
- The announcement was not a surprise per se, but BOTH have outperformed their Peer Baskets since the announcement, ORIX by a long ways.
- ORIX is a bigger deal, Shinsei is worth buying a dip.
China Conch (586 HK): Post-Spinoff Blues
- In my last note, I thought China Conch Venture Holdings (586 HK) (CCV) appeared fully-priced. If I had been long CCV, I recommended getting out.
- CCV shed HK$11.35/share after going ex- the China Conch Environment Protection Holdings (587 HK) (CCEP) water treatment in-specie spin-off. CCEP closed at HK$9.77/share on its first day of trading.
- CCV is trading back to around levels prior to the announcement of the spin-off. Separately, CCEP appears to be trading rich relative to waste treatment peers.
Toyo Construction (1890) Funkier Still
- Toyo Construction (1890 JP) situation changes day by day. In three days we have three Large Shareholder Report filings as The Expected Activist ducked out, replaced by A New Entrant.
- Now one has to consider what the rest of this week has looked like.
- And we wonder who it is, but reading between the lines can get you to a place where one might see what the aim is.
CSC/Intertrust: Start of Offer Period
- The offer period starts on 1 April and runs until 10 June (if necessary, it can be extended 2-10 weeks). The offer memorandum has been published.
- If, after the post-acceptance period, the offeror holds at least 80%, but less than 95% of the shares, the offeror may elect to implement the Asset Sale and Liquidation.
- The share price increased by 2.2% after announcement of the start of the offer period. Gross spread to the offer price is 1.8%. Long INTER NA.
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