In today’s briefing:
- Toshiba – Key Takeaway Is Toshiba Tec’s Attractiveness
- GoTo Index Inclusion: Fast Entry to IDX30, LQ45, IDX80 Confirmed; BIG Buying Next Week
- Kito (6409) Shareholder Register Getting Interestinger
- Xiamen Port (3378 HK)’s Pre-Conditional Offer
- KOSPI 200 Official Announcement: Float Rate Changes (11 Up & 5 Down)
Toshiba – Key Takeaway Is Toshiba Tec’s Attractiveness
- Toshiba provided an update today on its management policy and the status of discussions with potential investors.
- The management targets unveiled looked plausible but rather optimistic while the only real new information on the potential privatisation was that 8 bids had been submitted.
- In the end the most interesting takeaway for us was that Toshiba Tec would play a key role in Toshiba’s data business.
GoTo Index Inclusion: Fast Entry to IDX30, LQ45, IDX80 Confirmed; BIG Buying Next Week
- The IDX has announced that GoTo (GOTO IJ) will be included in the IDX30, LQ45 and IDX80 indices at a float of 66.4% at the close on 7 June.
- Waskita Karya (Persero) (WSKT IJ) will be deleted from the IDX30 and LQ45 indices, while Buyung Poetra Sembada PT (HOKI IJ) will be deleted from the IDX80 index.
- Passive trackers need to buy around 12.78% of the real float on GoTo (GOTO IJ). Add the impact from open ended funds and that could move up to 20%.
Kito (6409) Shareholder Register Getting Interestinger
- In mid-May 2022, Kito Corporation (6409 JP) announced KKR would launch a Tender Offer to buy out the company at a big premium. I warned about the register.
- Two large shareholders were there prior to the bid – one “engagement-style” activist and one private company in a similar industry. Both had a 9+% holding visible.
- Both have now lifted their stakes above 10% post-announcement, at a small spread to terms. This makes things more interesting.
Xiamen Port (3378 HK)’s Pre-Conditional Offer
- SOE terminal operator Xiamen International Port (3378 HK) has announced a pre-conditional Offer from Xiamen Port Holding, a Fujian SASAC-controlled entity.
- The Offer price is HK$2.25 per H-share, a 55% premium to last close. The Offer price will NOT be increased. The final dividend will be added to the cancellation price.
- Pre-Conditions include approvals from NDRC, MoC, SAFE, and CSRC. There is no tendering condition. This deal mirrors Guodian Technology (1296 HK), BCL (2868 HK), and Jin Jiang Capital (2006 HK).
KOSPI 200 Official Announcement: Float Rate Changes (11 Up & 5 Down)
- The KRX officially announced the float rate changes of the KOSPI 200 constituents at this June rebalancing: 11 increases and 5 decreases.
- Kakao Bank has the most significant change of 43%p, followed by Krafton and Woori Financial. NH Investment and HD Infracore will suffer a drop of 9%p.
- As for passive flow x ADTV, Kakao Bank leads the pack at 2.95x, followed by Kakao Pay (1.15x). NH Investment and Korea Gas will face a noticeable outflow.
Before it’s here, it’s on Smartkarma
