In today’s briefing:
- TSMC (TSM/2330 TT): Position for ADR Premium Expansion
- Russian Impact on MSCI Korea: Total Inflow Size & Top 20 Inflow (X ADTV) Stocks
- Hitachi Transport Is the Eventy Energizer Bunny
- Ausnutria’s Offer Gets Up. But Only Just
- China Infrastructure & Logistics Group (1719 HK): Unconditional MGO Now Open
TSMC (TSM/2330 TT): Position for ADR Premium Expansion
- The premium of Taiwan Semiconductor Sp Adr (TSM US) to TSMC (2330 TT) has dropped from 10% to nearly parity in slightly less than a month.
- There is still no headroom available on the ADR and we expect the premium to move higher once the selling on the ADR is complete.
- The SGX has recently launched single stock futures on Taiwan Semiconductor Sp Adr (TSM US). There could be market makers willing to provide liquidity which would make trade entry easier.
Russian Impact on MSCI Korea: Total Inflow Size & Top 20 Inflow (X ADTV) Stocks
- Korea’s local market estimates an inflow (resulting from the Russian departure) to Korea at ₩1T
- Most of the preferred stocks in MSCI Korea top the list with the highest passive buying ratios to the 30-day average trading value.
- Other than that, S1 Corp, Coway, Samsung SDS, C&T, and KT&G are the others that sit high on the list.
Hitachi Transport Is the Eventy Energizer Bunny
- Hitachi Transport System (9086 JP) has been “virtually” for sale since October 2019 but it did not pop when others did then. But SG and HTS “consciously uncoupled” in 2020.
- Mid-Year last year saw news HTS was entertaining offers, which didn’t go anywhere but newer news suggests Round 2 of a new course of bidding is done.
- And the stock keeps on going up and up and up.
Ausnutria’s Offer Gets Up. But Only Just
- 52.7%. The only number that matters. That satisfied the acceptance condition to the mandatory conditional cash Offer. But it was a close-run thing.
- The Offer is now unconditional and will remain open for acceptance until the 17 March.
- Yili has no intention to privatise Ausnutria Dairy Corp (1717 HK) and intends to maintain its listing following the close of the Offer.
China Infrastructure & Logistics Group (1719 HK): Unconditional MGO Now Open
- On the 10 January, China Infrastructure & Logistics Group (1719 HK) (“CILG”) has announced a possible MGO from Hubei Ports. The Composite Doc is now out. The Offer is open.
- This transaction is an unconditional mandatory cash offer at HK$1.15/share.
- The first – and likely, last close – is the 25 March. The Offeror intends to maintain CILG’s listing.
Before it’s here, it’s on Smartkarma
