In today’s briefing:
- MV Australia Equal Weight Index Rebalance Preview: Close Deletions in June
- Potential Merger Dynamics Involving SK Inc, SK Square, & SK Hynix
- Altium (ALU AU)’s 12th July Scheme Vote. Renesas’ Done Deal
- CPMC Holdings (906 HK): ORG’s Competing Offer Kicks off an Auction
- (Mostly) Asia-Pac M&A: CPMC, Nagatanien, APM Services, Altium, Austal, Shinko Elect, Hollysys
- Initial Thoughts on the Yanolja IPO
- Can indie Semiconductor Get Acquired? A Market-Defining Technology With High Differentiation & 3 Critical Factors Making It An Attractive Target! – Major Drivers
- Weekly Deals Digest (09 Jun) – Teijin, Nagatanien, CF Logistics, Asia Cement, CPMC, MMG, Shift Up
- EQD | The NIFTY Swung Big But the Rally Could Continue For +2 Weeks
- Game On As ORG Lobs Competing Offer For CPMC (906 HK)
MV Australia Equal Weight Index Rebalance Preview: Close Deletions in June
- With the review period complete, there are 3 stocks that are close to the deletion zone and could be removed from the index at the June rebalance.
- Even if there are no constituent changes, capping changes will lead to one-way turnover of 3.6% and a one-way trade of A$83m.
- There are 6 stocks with over A$5m to trade from passive trackers but the impact on the stocks is not very high.
Potential Merger Dynamics Involving SK Inc, SK Square, & SK Hynix
- Regardless of the divorce proceedings, SK still urgently needs SK Inc’s stock price to rise for other reasons. That reason is to position SK Hynix directly under SK Inc.
- SK Inc boosts stake in SK Square with SK Telecom shares, followed by a public tender offer to exchange SK Square shares for new SK Inc shares.
- SK Inc’s involvement in the divorce lawsuit makes it a focus for traders seeking relative outperformance among the SK companies involved in this situation.
Altium (ALU AU)’s 12th July Scheme Vote. Renesas’ Done Deal
- Back on the 15th Feb, Renesas Electronics (6723 JP), a supplier of advanced semiconductors, entered into a Scheme with Altium Ltd (ALU AU).
- Altium shareholders are being offered A$68.50/share, in cash, a lifetime high.
- The Scheme Booklet is now out, with a Scheme Meeting to be held on the 12th July. Expected implementation on the 1 August. The IE says fair & reasonable.
CPMC Holdings (906 HK): ORG’s Competing Offer Kicks off an Auction
- CPMC Holdings (906 HK) disclosed a competing pre-conditional voluntary offer from ORG Technology Co., Ltd. A (002701 CH) at HK$7.21, a 4.9% premium to Changping Industrial’s HK$6.87 offer.
- Like the Changping Industrial offer, ORG’s offer is pre-conditional on regulatory approvals and has a 50% minimum acceptance condition. Changping Industrial has secured all regulatory approvals except SAMR.
- ORG’s skinny premium and precarious irrevocable from Mr Zhang Wei suggests Changping Industrial’s next move is to secure Mr Wei’s irrevocable with a revised higher offer.
(Mostly) Asia-Pac M&A: CPMC, Nagatanien, APM Services, Altium, Austal, Shinko Elect, Hollysys
- I tally 47 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
- Two new deals discussed on Smartkarma this week: Asia Cement China (743 HK)‘s rubbish Scheme; and the low-balled MBO for Nagatanien Holdings (2899 JP).
- Key updates took place on: CPMC Holdings (906 HK), APM Human Services (APM AU), Altium (ALU AU), Austal (ASB AU),Shinko Electric Industries (6967 JP), and Hollysys Automation Technologies (HOLI US).
Initial Thoughts on the Yanolja IPO
- Yanolja is getting ready to complete its IPO in the US in the next several months. Softbank invested about US$1.7 billion in Yanolja in 2021.
- The valuation of Yanolja could be between US$7 billion to US$9 billion. The company could raise nearly US$400 million in this IPO.
- Overall, we are concerned about the valuations of Yanolja if indeed the bankers push ahead with the IPO at the valuation range of US$7 billion to US$9 billion.
Can indie Semiconductor Get Acquired? A Market-Defining Technology With High Differentiation & 3 Critical Factors Making It An Attractive Target! – Major Drivers
- Indie Semiconductor’s Q1 2024 financial results and strategic discussion provide both encouraging and cautionary insights.
- During this period, the company reported a year-over-year revenue increase of 29% to $52.4 million, driven by strong performance in their Autotech market segment, albeit slightly below the provided guidance.
- Gross profit stood at $26.4 million, reflecting a gross margin of 50.3%, which fell short of expectations due to unfavorable product mix adjustments.
Weekly Deals Digest (09 Jun) – Teijin, Nagatanien, CF Logistics, Asia Cement, CPMC, MMG, Shift Up
- A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
- ECM developments: MMG (1208 HK) US$1.2 billion rights issue. Shift Up (462870 KS) seeks to raise up to US$320 million.
- Event-Driven developments: Asia Cement China (743 HK), CPMC Holdings (906 HK), Chilled & Frozen Logistics Holdings (9099 JP), Nagatanien Holdings (2899 JP), Teijin Ltd (3401 JP), Altium Ltd (ALU AU).
EQD | The NIFTY Swung Big But the Rally Could Continue For +2 Weeks
- The NIFTY Index has been swinging wildly as of lately, but the odds look good for a continuation of the rally at the moment.
- The index is in a pattern where it can rally for 1-2 more weeks.
- Wait for prices in the 23500/23700 resistance area before considering a SHORT trade.
Game On As ORG Lobs Competing Offer For CPMC (906 HK)
- After six months had elapsed, and CPMC Holdings (906 HK)‘s Offeror just needing SAMR/SAFE clearance before launching a firm bid, a competing Offer from ORG Technology (002701 CH) appeared unlikely.
- Yet in a surprise move, ORG has made a pre-conditional (NDRC, SAFE, MoC, SAMR, and shareholder approval) Offer at HK$7.21/share, a 4.9% premium to the ongoing SASAC/NCSSF Offer.
- ORG’s pre-con Offer also has a 50% acceptance condition. ORG and concert parties have 24.43%. And Zhang Wei (22.01%) has given has an irrevocable. Directors have 0.87%. Intriguing situation.
💡 Before it’s here, it’s on Smartkarma
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