In today’s briefing:
- FTSE EPRA Nareit Index Rebalance: Two Adds & Three Deletes with Large Impact
- Toshiba (6502) – Now We Have the First Rounds Bids In, And We Wait, But It’s Top of Range
- Toshiba – Key Takeaway Is Toshiba Tec’s Attractiveness
- SPH REIT Offer Goes Unconditional – The Option Now and Index Impacts To Come
- FTSE EPRA Nareit Asia – June 2022 Rebalance – BIG Impact on BIG Names
FTSE EPRA Nareit Index Rebalance: Two Adds & Three Deletes with Large Impact
- Samty Residential Investment and LOTTE Reit are inclusions while Hang Lung Properties, Henderson Land Development and New World Development are deletions for the FTSE EPRA Nareit Developed Asia Index.
- There is a large impact on all stocks, but the flow is much higher on the deletions and the stocks could drop and underperform their peers.
- Ichigo Inc (2337 JP) is a surprise non-inclusion and could trade lower today providing an opportunity to buy the stock while waiting for a late inclusion announcement.
Toshiba (6502) – Now We Have the First Rounds Bids In, And We Wait, But It’s Top of Range
- Since Toshiba reported lacklustre earnings and guidance, there has been a steady flow of articles in the press about the privatisation process going on behind the scenes.
- On 25 March, Toshiba let it be known a privatisation process would start. On 31 March, Bain gave notice it would participate. Toshiba has been in talks since 21 April
- First round bids were due 30 May, and 10 total submissions were made, with 8 privatisation proposals proffered. Now we wait…
Toshiba – Key Takeaway Is Toshiba Tec’s Attractiveness
- Toshiba provided an update today on its management policy and the status of discussions with potential investors.
- The management targets unveiled looked plausible but rather optimistic while the only real new information on the potential privatisation was that 8 bids had been submitted.
- In the end the most interesting takeaway for us was that Toshiba Tec would play a key role in Toshiba’s data business.
SPH REIT Offer Goes Unconditional – The Option Now and Index Impacts To Come
- Yesterday, it appears that a large holder of SPH REIT (SPHREIT SP) accepted the Cuscaden Chain Offer for the REIT.
- This morning just after midnight, the Cuscaden consortium announced that the Chain Offer had become Unconditional.
- This makes the 4-week option unconditional, and it means index impacts to come.
FTSE EPRA Nareit Asia – June 2022 Rebalance – BIG Impact on BIG Names
- FTSE Russell announced a total of 6 adds and 6 deletes in the FTSE EPRA Nareit Developed Market Series, with the largest number of changes in Asia.
- Samty Residential Investment (3459 JP) and LOTTE Reit Co Ltd (330590 KS) are added; Henderson Land Development (12 HK), Hang Lung Properties (101 HK), and New World Development (17 HK) deleted.
- The impact on all the names is large. This is worth looking at.
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