In today’s briefing:
- Hitachi Transport System (9086) Shareholders Get the BIG Win in This VLBO
- SPH Scheme Elections In – SPH REIT Chain Offer Announced
- SENSEX Index Rebalance Preview: Tata Motors Should Replace Dr. Reddy; Hindalco Is Close
- MNACT/MCT Circulars Out – Still Probably Heads I Win Tails I Win – But It’s Complicated
- JAPAN ACTIVISM: Silchester Goes After Bank of Kyoto
Hitachi Transport System (9086) Shareholders Get the BIG Win in This VLBO
- KKR and Hitachi Ltd (6501 JP) have a deal to get KKR to buy Hitachi Transport System (9086 JP) in a VLBO (Very Leveraged BuyOut).
- As somewhat expected, it is a “split price deal” where Hitachi will accept a lower price for its 40% stake than minorities will receive in a Tender Offer.
- This is a big win for Hitachi Transport shareholders, but the Tender Offer likely won’t start until late September.
SPH Scheme Elections In – SPH REIT Chain Offer Announced
- Singapore Press Holdings (SPH SP) 58% to 42% to take cash instead of cash + SPH REIT units.
- That was to be expected, but it means Cuscaden owns 47+% of SPH REIT and needs to conduct a Conditional Chain Offer on SPH REIT at S$0.9372/unit.
- That provides a put option under SPH REIT for holders/buyers as Singapore opens up.
SENSEX Index Rebalance Preview: Tata Motors Should Replace Dr. Reddy; Hindalco Is Close
- Today is the last day of the review period for the June review of the S&P BSE SENSEX Index (SENSEX INDEX). Changes become effective at the close on 17 June.
- We see Tata Motors Ltd (TTMT IN) and Tata Motors DVR (TTMT/A IN) replacing Dr. Reddy’s Laboratories (DRRD IN). Hindalco Industries (HNDL IN) is a close add on sector balance.
- The impact on DRRD IN will be higher than on TTMT IN, in terms of days of ADV to trade and days of delivery volume that needs to change hands.
MNACT/MCT Circulars Out – Still Probably Heads I Win Tails I Win – But It’s Complicated
- The Mapletree North Asia Commercial Trust (MAGIC SP) Scheme Doc and Mapletree Commercial Trust (MCT SP) Circular are both out this morning.
- The IFA deems the deal FAIR and REASONABLE. This is not surprising. It was already going to be so with just the scrip, but with the cash bump it’s easier.
- But the situation is complicated. And the complications have complications. The trade is still to be long MCT, and long MCT vs MNACT is an interesting idea.
JAPAN ACTIVISM: Silchester Goes After Bank of Kyoto
- Silchester International Investors has owned Bank of Kyoto (8369 JP) for 16 years and is now the largest shareholder in the bank.
- They have been dissatisfied, become vocal behind the scenes with their dissatisfaction, and BoK management disagrees so they will go to the mattresses. Gently.
- This could get some investors excited, but it is unlikely to be a successful activist effort.
Before it’s here, it’s on Smartkarma
