In today’s briefing:
- Punters Take A Gamble on Genting Singapore
- Index Rebalance & ETF Flow Recap: TW Div+, TPX, KOSPI2, KQ150, NIFTY100, ASX200, CPSE, HFCAA, HDFCB
- Last Week in Event SPACE: BYD, Astra/United Tractor, Japan Passive, AGL, Genting Singapore
- Merger Arb Mondays (18 Jul) – Link Admin, AOF, DTAC/True, Ramsay Health, ResApp, Infomedia
- ECM Weekly (17th Jul 2022) – Tianqi, Emperador, Soosan, SoCar, WCP, Deewin, Bharat FIH, BYD
- ANZ to Acquire Suncorp Bank: Equity Raise & Regulatory Approvals
- Weekly Deals Digest (17 Jul): WCP, BYD, Link, Genting Singapore, DTAC/True, AOF, ResApp
- WCP Passive Flow Analysis: KOSDAQ 150 Early Entry & Local Battery ETFs
- S&P/ASX200: West African Resources (WAF) Replaces Uniti (UWL) At 21 July Close
- GSK Spinoff Haleon (HLN UK) Is Biggest New Euro Listing In 10yrs – Index Implications and Overhang
Punters Take A Gamble on Genting Singapore
- Bloomberg is reporting Genting Singapore (GENS SP) has been attracting suitors, including MGM Resorts International (MGM US).
- With Macau all-but emulating a Shanghai-style lockdown, including the recent shuttering of all casinos, large global casino operators will be looking to diversify their revenue base.
- But with Singapore potentially emerging as Asia’s go-to gaming destination going forward, it’s unlikely the Lim family will exit their Genting flagship.
Index Rebalance & ETF Flow Recap: TW Div+, TPX, KOSPI2, KQ150, NIFTY100, ASX200, CPSE, HFCAA, HDFCB
- The FTSE TWSE Taiwan Dividend+ Index is interesting since there are multiple moving parts and is not widely tracked. We take an early look at potential changes in December.
- West African Resources (WAF AU) will replace Uniti Group Ltd (UWL AU) in the S&P/ASX 200 (AS51 INDEX) at the close of trading on 21 July.
- There have been some large inflows to the Vanguard FTSE Pacific ETF (VPL US) in the last few weeks.
Last Week in Event SPACE: BYD, Astra/United Tractor, Japan Passive, AGL, Genting Singapore
- Berkshire appears set to exit BYD (1211 HK) partially or in full. But why signal to market well in advance?
- United Tractors (UNTR IJ)‘s buyback should be impactful. They could do another one afterwards as they have lots of cash. This is a raging buy. Buy now. With both hands.
- The BOJ was expected to change its ETF allocations. It stopped buying Nikkei 225 and JPX Nikkei 400 ETFs. As the world moves more to passive, expect float to decrease.
Merger Arb Mondays (18 Jul) – Link Admin, AOF, DTAC/True, Ramsay Health, ResApp, Infomedia
- We summarise the latest spreads and newsflow of merger arb situations covered by us across Hong Kong, Australia, New Zealand, Singapore, Indonesia, Malaysia, Thailand and Chinese ADRs.
- The highest spreads are 21Vianet Group (VNET US), Alliance Aviation Services (AQZ AU), Ramsay Health Care (RHC AU), Australian Unity Office Fund (AOF AU), Link Administration (LNK AU).
- The lowest gross spreads are Hwa Hong Corp (HWAH SP), Uniti Group Ltd (UWL AU), Excelpoint Technology (EXLP SP), Giordano International (709 HK), Dongzheng Automotive Finance (2718 HK).
ECM Weekly (17th Jul 2022) – Tianqi, Emperador, Soosan, SoCar, WCP, Deewin, Bharat FIH, BYD
- Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
- Tianqi’s soggy debut in Hong Kong despite its wide discount will probably put Hong Kong ECM back in snooze mode for a while
- There were no major placements this week and its likely to remain that was as we approach the half-yearly results season.
ANZ to Acquire Suncorp Bank: Equity Raise & Regulatory Approvals
- Australia and New Zealand Banking Group (ANZ) (ANZ AU) has announced that it is acquiring Suncorp Bank from Suncorp (SUN AU) for an all cash consideration of A$4.9bn.
- ANZ will fund the Suncorp Bank acquisition by a fully underwritten 1:15 pro rata accelerated renounceable entitlement offer to raise A$3.5bn at A$18.9/share, a 12% discount to TERP.
- A small increase in the Herfindahl-Hirschman Index (HHI) for the mortgage lending market will make it difficult for ACCC to deny approval for the acquisition.
Weekly Deals Digest (17 Jul): WCP, BYD, Link, Genting Singapore, DTAC/True, AOF, ResApp
- A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Indonesia, Malaysia, Thailand, Korea and Chinese ADRs.
- On the ECM front, Tianqi Lithium (9696 HK) listed its H Shares, WCP (WCP KS) plans to launch a KRW900 billion (US$692 million) IPO in August.
- Event-Driven developments at Link Administration (LNK AU), DTAC/True, BYD (1211 HK), Genting Singapore (GENS SP), Tassal (TGR AU), Resapp Health (RAP AU), Dongzheng Automotive Finance (2718 HK).
WCP Passive Flow Analysis: KOSDAQ 150 Early Entry & Local Battery ETFs
- WCP will enter the KOSDAQ 150 with a passive inflow of about 530K shares, 1.5% of SO, at the close on December 8.
- WCP will be added to the TIGER ETF on October 14 with a passive inflow of about 345K shares, 1.0% of SO, at the close on October 14.
- From a flow trading perspective, the flow volume is certainly substantial enough to design a passive flow trading setup in conjunction with the lockup release schedule.
S&P/ASX200: West African Resources (WAF) Replaces Uniti (UWL) At 21 July Close
- The Uniti Group Ltd (UWL AU) Scheme Meeting was held Friday, approving both General Scheme Resolution and Rollover Shares Scheme unanimously. The MBD Bidco deal is done.
- Friday after the close, the S&P DJI Global Index team announced that Uniti would be deleted from the ASX200 21 July at the close.
- Gold miner West African Resources (WAF AU) was chosen as the replacement. It’s a decent-sized inclusion and should have been well-flagged last week but may have been ignored.
GSK Spinoff Haleon (HLN UK) Is Biggest New Euro Listing In 10yrs – Index Implications and Overhang
- GlaxoSmithKline PLC (GSK LN) shareholders on 6 July overwhelmingly approved the long-awaited demerger of its GSK Consumer Healthcare unit newly-named Haleon (HLN LN) earlier this month.
- While not originally universally-desired (Elliott wanted a sale), it was overwhelmingly approved. Haleon lists Monday 18 July with a £40+bn valuation resulting in FTSE 100 and Stoxx Europe 600 changes.
- GSK investors get 1 share of Haleon for every share of GSK held. Post-demerger, the public owns 55%, Pfizer ~32%, GSK ~13%. Lockup ends 10 November. There will be overhang.
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