In today’s briefing:
- Tencent’s BIG In-Specie Dividend of JD.com Shares – The Likely Flows & Timing
- S&P/ASX Index Rebalance Preview (June): Potential Changes from Now to June
- Mapletree Revise Scheme – Give MNACT Holders Cash for NAV and a Free Option
- Mapletree Merger: All-Cash Option; Current Prices Mean No Passive Flows
- Toshiba – The New CEO And The Company Culture
Tencent’s BIG In-Specie Dividend of JD.com Shares – The Likely Flows & Timing
- Tencent (700 HK) will deliver shares of JD.com Inc. (9618 HK) this week in its in-specie distribution of 14.7% of the shares out of JD.com.
- Some people will NEED to hold. Some will NEED to sell. On a net basis, it is a short-term sell and a longer-term overhang.
- The timing and execution are going to be quite interesting. There will be short-term opportunity.
S&P/ASX Index Rebalance Preview (June): Potential Changes from Now to June
- The privatisation of Crown Resorts and CIMIC Group could lead to one change to the S&P/ASX100 and two changes to the S&P/ASX 200 (AS51 INDEX) prior to the regular rebalance.
- There will be more changes at the regular rebalance – one close change in the S&P/ASX50, one close change in the S&P/ASX100 and a few for the S&P/ASX 200.
- The potential inclusions have outperformed the potential deletions by a wide margin. Couple of the potential inclusions were added to the S&P/ASX300 and FTSE All-Cap indices on 18 March.
Mapletree Revise Scheme – Give MNACT Holders Cash for NAV and a Free Option
- Quarz and MNACT holders “win” to get a Cash-Only Consideration bump to 1.0x Price/Sep2021 NAV at S$1.1949/unit. This gets them out at NAV.
- However there is a catch they want to stay invested in the assets, they have to buy MCT in the market or accept that the scrip ratio was correct.
- To fund the Cash-Only Consideration option, there will be a Preferential Offering at S$2.0039/unit, and MIPL has offered to underwrite the entire deal. MNACT holders get a free option now.
Mapletree Merger: All-Cash Option; Current Prices Mean No Passive Flows
- Mapletree Commercial Trust (MCT SP) have added a cash-only option for Mapletree North Asia Commercial Trust (MAGIC SP) unitholders in addition to the scrip-only and cash-and-scrip options.
- At current prices, Mapletree North Asia Commercial Trust (MAGIC SP) unitholders will take the cash-only option. That means no passive flows following the implementation of the scheme.
- At current prices, the entire preferential offering is likely to be taken up by MIPL. The increase in shares will be offset by a lower FIF/investability weight – no inflows.
Toshiba – The New CEO And The Company Culture
- The Nikkei had an interesting article today on Toshiba’s new CEO and the company’s underlying culture.
- It addresses some inconsistencies we have seen in terms of demonstrated competence at lower levels vs. a certain lack thereof at the top.
- Ultimately though we suspect that what it reveals points to a lower chance of a privatisation
Before it’s here, it’s on Smartkarma
