In today’s briefing:
- Toshiba Board Ructions as Independent Director Goes Rogue
- Yashili (1230 HK): Possible Mengniu Offer Amid Exchange Rights And Phantom Shares
- Razer’s Offer Spread Risk/Reward – FY21 Results
- Mapletree Commercial Vs the World (Or at Least S-REIT World). Still Heads I Win Tails I Win
- Toshiba – Zage News
- Liquid Universe of European Ordinary and Preferred Shares: March ’22 Report
Toshiba Board Ructions as Independent Director Goes Rogue
- There is a Toshiba Corp (6502 JP) EGM next week for shareholders to vote on the company’s Separation Plan, with a shareholder proposal to re-engage take-private buyers.
- Four+ weeks ago, the Board unanimously supported the first, and unanimously opposed the second, and shareholders and major proxy advisors came out against the first.
- Now Independent Director Raymond Zage, originally from one of the dissenting shareholders, has written a letter stating he has voted FOR the shareholder proposal the board rejected. OOPS! 🤭
Yashili (1230 HK): Possible Mengniu Offer Amid Exchange Rights And Phantom Shares
- China Mengniu (2319 HK) is in discussions regarding its holdings in Yashili (1230 HK) which may result in a number of Potential Transactions, and may include a pre-conditional privatisation offer.
- The Potential Offer would involve a cancellation price of HK$1.20/share, a 31.9% premium to last close, and a 161% premium to the undisturbed price.
- The recent privatisation of key peer Ausnutria Dairy Corp (1717 HK) provides a guideline to the timeline from here.
Razer’s Offer Spread Risk/Reward – FY21 Results
- Razer Inc (1337 HK)‘s FY21 results beat consensus revenue by 8% but came below consensus EBIT by 3%, based on CapitalIQ data.
- The management did their best to dampen sentiment by pointing out slowing growth momentum and margin compression due to significant growth investments in 2022.
- We think that the results/outlook do little to increase the attractiveness of the offer. We would be buyers up to HK$2.5 per share (implies 65% deal probability).
Mapletree Commercial Vs the World (Or at Least S-REIT World). Still Heads I Win Tails I Win
- In the waning hours of 2021, Mapletree Commercial Trust (MCT SP) and Mapletree North Asia Commercial Trust (MAGIC SP) proposed to merge to make a top 10 Asian REIT.
- MCT shareholders and “The Market” did not like it and sent MCT units lower. MNACT holder Quarz didn’t like it and complained. I wrote about all this.
- But 6+ weeks after looking at new MCT trades as Heads I Win, Tails I Win, I revisit and see no reason to change my mind.
Toshiba – Zage News
- The announcement from Raymond Zage that he would vote for 3D’s proposal at next week’s EGM is a curious development.
- It suggests that pressure on Toshiba’s directors could be ramping up significantly.
- Whether that is a good thing or not is a serious question though.
Liquid Universe of European Ordinary and Preferred Shares: March ’22 Report
- Spreads have generally widened across our liquid universe in line with the recent market turmoil.
- Recommendations Long ords / short prefs: Fuchs Petrolub, Henkel, Handelsbanken.
- Recommendations Long prefs / short ords: Atalas Copco, Grifols, Investor AB, SSAB, Telecom Italia (takeover interest), Volkswagen, is Schroders near the bottom?
Before it’s here, it’s on Smartkarma
