In today’s briefing:
- S&P Global Clean Energy Index: Changes for Asia & Impact
- Ramsay Health Care (RHC AU): Indicative Proposal from KKR & Index Implications
- KKR Bids $88/Share For Ramsay Health
- Toshiba – Some Thoughts on the Bain Article
- Kakao Pay Passive Play Opportunity on June 9
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).
Ramsay Health Care (RHC AU): Indicative Proposal from KKR & Index Implications
- A KKR led consortium has made a conditional, non-binding, indicative proposal to acquire 100% of the shares in Ramsay Health Care (RHC AU) at A$88/share in cash.
- The offer values Ramsay Health Care (RHC AU) at A$20.14bn and is a premium of 36.7% to the last close. The premium is over 30% even using longer term VWAPs.
- There will be changes to the S&P/ASX family of indices to maintain the number of index members. We will know more once an indicative timeline is published.
KKR Bids $88/Share For Ramsay Health
- Hospital operator Ramsay Health Care (RHC AU) has announced an unsolicited, non-binding Offer from KKR, by way of a Scheme, at A$88.00/share, in cash, a 36.7% premium to last close.
- Presumably, Paul Ramsay’s Ramsay Foundation, Ramsay’s largest shareholder, is supportive, otherwise there is no deal.
- Due diligence has been granted. If successful, this would be one of the largest LBOs by a private equity outfit in Australia.
Toshiba – Some Thoughts on the Bain Article
- Yesterday the Nikkei published an article featuring Bain MD Yuji Sugimoto who also featured heavily during their bid for Kioxia.
- Sugimoto commented that in the event of a buyout there would be no break-up of Toshiba.
- While plausibly a PR move directed at employees that stance raises the question of exactly how they would unlock value.
Kakao Pay Passive Play Opportunity on June 9
- A passive play opportunity for Kakao Pay (377300 KS) is approaching.
- Its float rate will likely be raised in the KOSPI 200 June rebalancing. Then, in the KOSPI 200 IT Sector Index, it will again experience the most significant passive inflow.
- The recent share price volatility has increased considerably. So, instead of a preemptive position buildup, a shorter-window passive play seems more appropriate just before the rebalancing trading day.
Before it’s here, it’s on Smartkarma
