Event-Driven: Toshiba Corp, Yangzijiang Shipbuilding, DGO Gold Ltd and more

In today’s briefing:

Toshiba (6502) – Now We Have “That One Piece Of News”
Straits Times Index (STI) Rebalance Preview: Impact of Yangzijiang Shipbuilding Spin-Off
Toshiba – Market Reaction to Proposal Solicitation News Is a Great Short Opportunity
DGO Gold: Target Statement On Gold Road’s Offer

Toshiba (6502) – Now We Have “That One Piece Of News”

Toshiba announced that it will start a sale process by offering info, and running a two-round “strategic alternative” process. Info and non-binding proposals followed by due dili and binding proposals.
For me, this seems like “That One Piece Of News” which is required to make the range jump, and to get people into Now-We-Are-Going-To-Get-A-Deal.
We may not, of course, and it will be a long, complicated road. But this is a step change. Starting a beauty contest is a big deal.

Yangzijiang Shipbuilding (YZJSGD SP) is trading ex-spinoff today and is trading at S$0.85/share versus the last close of S$1.54/share, implying a price of S$0.69/share for Yangzijiang Financial Holding Ltd (YZJFH).
At the last prices, Yangzijiang Shipbuilding (YZJSGD SP) will remain in the FTSE Straits Times Index (STI) (STI INDEX) while Yangzijiang Financial Holding (YZJFH) will be deleted on 4 May.
To avoid index deletion, Yangzijiang Financial Holding (YZJFH) will need to trade at S$0.825/share or higher and that would result in the deletion of Comfortdelgro Corp (CD SP).

Toshiba announced yesterday that they would be soliciting proposals on strategic alternatives specifically mentioning privatisation.
The stock is up 3.5% on the news and had been up as much as 6.5% in a very weak market despite the news being well foreshadowed.
At the current price we believe there could be limited scope for a significant premium and much downside if tech turns over.

DGO Gold Ltd (DGO AU) has issued its Target Statement in response to Gold Road Resources (GOR AU)‘s all-scrip off-market Offer.
The Offer was open to acceptance on the 8 April and will close (unless extended) on the 9 May.
DGO’s directors unanimously recommend the Offer, in the absence of a superior proposal.

Before it’s here, it’s on Smartkarma