In today’s briefing:
- MSCI Feb 2022 Index Rebalance Preview: Busy for a Quarterly Review
- MCT SP + MAGIC SP = MPACT SP: Proposed Merger Details & BIG Index Impact
- Mapletree Mega-Merger Means MCT Markup
- Mapletree Commercial Trust’s Proposed Merger with Mapletree North Asia Commercial Trust
- FTSE All-World/All-Cap Index Rebalance Preview: Plenty of Adds for China
MSCI Feb 2022 Index Rebalance Preview: Busy for a Quarterly Review
- The review period runs from 18-31 January for the February QIR, the results will be announced on 10 February (Asia-time) with the changes implemented after the close on 28 February.
- There are quite a few potential changes in China and Korea, with a couple in Japan and one in Indonesia. There are a few stocks close to the inclusion/exclusion thresholds.
- Other big changes include a potential increase in the Foreign Inclusion Factor for SK Square (402340 KS) and an increase in the Index Inclusion Factor for Sea Ltd (SE US).
MCT SP + MAGIC SP = MPACT SP: Proposed Merger Details & BIG Index Impact
- Mapletree Commercial Trust (MCT SP) is looking to merge with Mapletree North Asia Commercial Trust (MAGIC SP) to create one of the top 10 Commercial REITs in Asia.
- MAGIC SP unitholders will receive a scheme consideration of S$1.1949/unit of MAGIC SP, and will have a scrip-only option and a cash and scrip option.
- The increase in index shares for Mapletree Commercial Trust (MCT SP) will result in large buying from passive FTSE EPRA Nareit Developed Asia, Straits Times Index and MSCI Singapore trackers.
Mapletree Mega-Merger Means MCT Markup
- Mapletree Commercial Trust (MCT SP) and Mapletree North Asia Commercial Trust (MAGIC SP) announced their prospective merger on Friday.
- The merger ratio provides an uplift to already strong recent relative performance for MAGIC holders, and strong pro-forma NAV and DPU accretion for MCT holders.
- And it means a lot of flow. Lots and lots of flow.
Mapletree Commercial Trust’s Proposed Merger with Mapletree North Asia Commercial Trust
- Each Mapletree North Asia Commercial Trust (MAGIC SP)/MNACT unitholder will receive either a scrip-only or the cash-and-scrip offer worth S$1.1949 per MNACT unit, a 7.6% premium to the last close price.
- The proposed merger provides Mapletree Commercial Trust (MCT SP) unitholders with meaningful geographic diversification through a DPU and NAV accretive transaction.
- MNACT unitholders will receive an attractive consideration in terms of P/NAV and gross exchange ratio. Both unitholders will benefit from the enlarged REIT’s higher free float and growth potential.
FTSE All-World/All-Cap Index Rebalance Preview: Plenty of Adds for China
- The price review period for the FTSE All-World/All-Cap March 2022 SAIR ended on 31 December. The changes are expected to be announced on 18 February and implemented on 18 March.
- There are loads of potential inclusions to the index for China – a lot of the changes are a result of stocks being included in Northbound Stock Connect.
- There are stocks that are potential inclusions in other indices and will have additional passive inflows. Nongfu Spring could also be included in the FTSE China 50 and HSI indices.
Before it’s here, it’s on Smartkarma
