In today’s briefing:
- S&P Global Clean Energy Index: Changes for Asia & Impact
- Hitachi Transport (9086) Takeover Deal Imminent
- 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
S&P Global Clean Energy Index: Changes for Asia & Impact
- There are 12 additions to the S&P Global Clean Energy Index for Asia. The changes were announced on 8 April and will be implemented at the close on 22 April.
- Largest inflows are on Chubu Electric Power, China Yangtze Power, Adani Green Energy, Energy Absolute, LONGi Green Energy Technology, JA Solar Technology, Tianjin Zhonghuan Semiconductor and Sungrow Power Supply.
- The largest outflows are expected on Meridian Energy (MEL NZ), Contact Energy (CEN NZ) and Xinyi Energy Holdings Ltd (3868 HK).
Hitachi Transport (9086) Takeover Deal Imminent
- The Nikkei Leak Article of the Hitachi Transport takeover price is out. That suggests board meetings and deal announcement are imminent
- The price suggested in the article comes out to be just under ¥8,000.
- Past deals between KKR and Hitachi for Hitachi subs (and the language of the article on deal structure) suggest the minority Tender Offer Price could be different.
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.
Straits Times Index (STI) Rebalance Preview: Impact of Yangzijiang Shipbuilding Spin-Off
- 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 – Market Reaction to Proposal Solicitation News Is a Great Short Opportunity
- 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.
Before it’s here, it’s on Smartkarma
