In today’s briefing:
- NIFTY Index Rebalance: Flows at the Close Today
- Razer (1337 HK): Spread To Tighten On Potential Headcount Removal
- Toyo Construction (1890) Tender Situation Indeed Getting Funky
- Crown Resorts: Scheme Booklet Lodged. Shareholder Meeting On 29 April
- 51job (JOB US): EGM On The 27 April
NIFTY Index Rebalance: Flows at the Close Today
- The changes to the NIFTY Index (NIFTY INDEX), Nifty Bank Index (NSEBANK INDEX) and NIFTY NEXT50 Indices were announced on 24 February and will be implemented at the close today.
- There is a fair amount to trade on the NIFTY Index (NIFTY INDEX) and Nifty Bank Index (NSEBANK INDEX) stocks given the sizeable passive assets that track the indices.
- There is pre-positioning on some of the names and there could be opportunities to build positions to play for a reversal.
Razer (1337 HK): Spread To Tighten On Potential Headcount Removal
- Razer Inc (1337 HK)‘s Scheme Document is now out. The Court Meeting will be held on the 26 April. The IFA declares the Offer to be fair and reasonable.
- More importantly, the Document flags the abolishment of the headcount test may become law ahead of the shareholder meeting. That is a game-changer.
- Trading at a wide spread of 14.2%. This will narrow on this latest development.
Toyo Construction (1890) Tender Situation Indeed Getting Funky
- Toyo Construction (1890 JP)‘s Independent Committee thought this deal was being done too cheaply, but they signed off on it. I thought it was cheap too.
- I thought that a leading activist in the name would think so too, and try his hand because of his running start of 7+%. Huge volume Day1 sparked wider interest.
- It has traded every day so far above terms so far but on the first full day of trading, the activist Murakami-san bailed. That changes things, but… it’s still funky.
Crown Resorts: Scheme Booklet Lodged. Shareholder Meeting On 29 April
- Crown Resorts (CWN AU)‘s Scheme Booklet is now out. The Scheme Meeting will be held on the 29 April with possible implementation on the 12 May.
- The Independent Expert has concluded Blackstone’s Offer is fair and reasonable and in the best interest of Crown shareholders.
- This transaction is a done deal, and is trading accordingly.
51job (JOB US): EGM On The 27 April
- On the 1 March, 51 Job Inc (JOBS US) said it had entered into a revised merger agreement at US$61.00/share, 22.8% down from the initial terms.
- 51job has now announced that it has called an extraordinary general meeting of shareholders to be held on April 27.
- Despite regulatory opacity, this transaction appears done. Separately, 51job’s FY21 financials will be released tomorrow.
Before it’s here, it’s on Smartkarma
