In today’s briefing:
- First News of Toshiba “Studying a Privatisation Plan”
- AKM (1639 HK): Timeline Clarified As Pre-Conditions Nearly Fulfilled
- Olam Unlocks Value Through the Sale of 35.4% of Olam Agri to SALIC
- KOSPI/KOSDAQ Buybacks in Progress: Those with High Daily Flow Screened
- Valmet/Neles: Merger Completion
- LG Energy Solution: End of the 3 Months Lock Up Period, Higher Short Selling, & JV with Stellantis
First News of Toshiba “Studying a Privatisation Plan”
- A Nikkei article overnight displays the first buds of “spring” around Toshiba management’s tilt towards trying to get shareholders what they want after the Separation Plan failed at the EGM.
- The article doesn’t say much, but it is a sign the Toshiba Board are not “lying flat.”
- However it doesn’t mean a deal is coming much less anywhere near doable. This is a long road. But it encourages more proactive portfolio resconstruction.
AKM (1639 HK): Timeline Clarified As Pre-Conditions Nearly Fulfilled
- Flexible printed board player AKM Industrial (1639 HK) has announced the approvals for the pre-conditions attached to the Scheme are in the final stages.
- Separately, the Court date for sanctioning the Scheme has been listed for the 19 July.
- Trading at a gross spread to terms of 3.6%, including the final dividend.
Olam Unlocks Value Through the Sale of 35.4% of Olam Agri to SALIC
- Olam Group (OLG SP) issued an update regarding its reorganization process today to announce the sale of a 35.4% stake in Olam Agri to the Saudi Agricultural and Livestock Investment Company.
- The transaction assigns a valuation (equity) of S$4.7bn for the Olam Agri-Business, which is around 69% of Olam Group’s current market cap.
- This is almost 2.0x the implied equity value of the Olam Agri-Business at the current share price of Olam Group, and suggests an upside of 33.8%.
KOSPI/KOSDAQ Buybacks in Progress: Those with High Daily Flow Screened
- I screened those local buybacks in Korea with a market cap of +₩300B. I further selected those whose buyback volume exceeds 0.5% of SO and buyback completion is below 50%.
- I then narrowed them down to those whose buybacks will likely be completed within 30 trading days with a daily buyback x ADTV of 0.15x or higher.
- As a result, I obtained nine names: Hwasung Industrial, SK Chemicals, Meritz Securities, Huons Global, Daishin Securities, E-Mart, Meritz Financial Group, Meritz Fire, & Hwaseung Industries
Valmet/Neles: Merger Completion
- Consideration: 0.3277 VALMT FH x 1 NELES FH plus a €2/share before the merger (record date 24 March). Upon announcement: 11.9x EV/Fwd EBITDA, 19.3x Fwd P/E.
- All conditions have been cleared and approvals obtained. Completion is expected to take place on 1 April. Valmet seems to be the big winner in this merger.
- Gross spread is currently -0.4%, so I would recommend monitoring the spread in case it turns positive.
LG Energy Solution: End of the 3 Months Lock Up Period, Higher Short Selling, & JV with Stellantis
- We discuss the end of the three months lock-up period, higher short selling of LG Energy Solution as well as the recent JV formation with Stellantis.
- At the current price of 439,000 won, we believe there is a 15% downside risk to LG Energy Solution shares over the next 3-6 months.
- LGES’s share price has rallied by 8% since the news about the JV with Stellantis have been announced but we believe this rally is likely to be short-lived.
Before it’s here, it’s on Smartkarma
