In today’s briefing:
- Toshiba – Why Renesas Might Be a Better Option for the Devices Business than an IPO
- STAR50 Index Rebalance: Index Committees Just Wanna Have Fun
- Z Energy (ZEL NZ): Scheme Booklet Out. Meeting On The 25 March
- NortonLifeLock/Avast: Deal Progress & Spreads
- FnGuide Samsung Group Index Rebalancing Preview
Toshiba – Why Renesas Might Be a Better Option for the Devices Business than an IPO
- We have made no secret of the fact that we consider Toshiba’s restructuring plans to be unspectacular.
- Initially we saw no reason to separate the infrastructure business and saleable assets but with that issue addressed it is the position of the devices business which concerns us.
- This is because we feel it is rather undersized to stand on its own two feet… but we increasingly feel that Renesas could be the ideal home for the unit.
STAR50 Index Rebalance: Index Committees Just Wanna Have Fun
- In keeping with tradition, the SSE and CSI have continued to use a 6 month minimum listing history. No one remembers how or why it started, but it carries on.
- There are only 10 trading days to implementation and passive funds will need to trade multiple days of ADV on the inclusions and exclusions.
- The adds, deletes and the SSE STAR50 (STAR50 INDEX) have moved in lockstep since November. The CSI500 Index has outperformed over the period opening up a trading opportunity.
Z Energy (ZEL NZ): Scheme Booklet Out. Meeting On The 25 March
- Z Energy Ltd (ZEL NZ)‘s Scheme Booklet is now out. The Scheme Meeting will be held on the 25 March.
- The Independent Advisor has concluded the Offer from Ampol (ALD AU) is fair and reasonable and in the best interest of ZEL shareholders.
- The spread to terms is attractive here assuming implementation in the second quarter of 2022.
NortonLifeLock/Avast: Deal Progress & Spreads
- On 24 February, the Spanish antitrust regulator, the National Markets and Competition Commission (CNMC) approved the proposed merger.
- All Regulatory Conditions have now been satisfied, other than approval by the UK’s CMA. The deal advances to completion but the Effective Date has been pushed to 4 April 2022.
- As of now, the majority cash option ($7.61 + 0.0302 NortonLifeLock shares/Avast share) should be preferred vs. the majority stock option. The spread on the majority cash option is 1.4%.
FnGuide Samsung Group Index Rebalancing Preview
- FnGuide Samsung Group has the most AUM among locally themed indexes. As of last Friday’s closing price, AUM is ₩1.52T.
- The share price movements of Samsung Group affiliates basically show high cointegration. Therefore, a small differential impact on the flow significantly affects the short-term price direction of these stocks.
- So, we should consider a long/short setup on a swing trading window. Particularly, we need to focus on the first two trading days, when the rebalancing impact is relatively significant.
Before it’s here, it’s on Smartkarma
