In today’s briefing:
- Toshiba Board Ructions as Independent Director Goes Rogue
- GoTo Gojek Tokopedia IPO: Offering Details & Index Inclusion
- Softbank Group – China Bounce Erases a Week of Losses
- Yashili (1230 HK): Possible Mengniu Offer Amid Exchange Rights And Phantom Shares
- Mapletree Commercial Vs the World (Or at Least S-REIT World). Still Heads I Win Tails I Win
Toshiba Board Ructions as Independent Director Goes Rogue
- There is a Toshiba Corp (6502 JP) EGM next week for shareholders to vote on the company’s Separation Plan, with a shareholder proposal to re-engage take-private buyers.
- Four+ weeks ago, the Board unanimously supported the first, and unanimously opposed the second, and shareholders and major proxy advisors came out against the first.
- Now Independent Director Raymond Zage, originally from one of the dissenting shareholders, has written a letter stating he has voted FOR the shareholder proposal the board rejected. OOPS! 🤭
GoTo Gojek Tokopedia IPO: Offering Details & Index Inclusion
- GoTo (1379371D IJ) is offering 52bn shares in its IPO (plus a greenshoe of 7.8bn shares). The issue is being targeted at domestic investors and should list on 4 April.
- GoTo (1379371D IJ) will also look to list on an international exchange within the next two years by selling just over 8% of the company to those investors.
- Inclusion in domestic indices could take place in July, while inclusion in the MSCI and FTSE indices is expected in 2023 at the earliest.
Softbank Group – China Bounce Erases a Week of Losses
- Softbank is a $23bn winner on the China bounce as Alibaba (+37% over 2 days, $18bn) and Vision Fund (+$4.8bn) recovered from selling pressure over the last week
- Improving sentiment aside the discount remains above 50% and the rebound appears to be more about correcting excess selling than a change in market outlook
- We remain wary of Chinese exposure in the near-term on political, regulatory and economic risks although the worst appears to be over for now
Yashili (1230 HK): Possible Mengniu Offer Amid Exchange Rights And Phantom Shares
- China Mengniu (2319 HK) is in discussions regarding its holdings in Yashili (1230 HK) which may result in a number of Potential Transactions, and may include a pre-conditional privatisation offer.
- The Potential Offer would involve a cancellation price of HK$1.20/share, a 31.9% premium to last close, and a 161% premium to the undisturbed price.
- The recent privatisation of key peer Ausnutria Dairy Corp (1717 HK) provides a guideline to the timeline from here.
Mapletree Commercial Vs the World (Or at Least S-REIT World). Still Heads I Win Tails I Win
- In the waning hours of 2021, Mapletree Commercial Trust (MCT SP) and Mapletree North Asia Commercial Trust (MAGIC SP) proposed to merge to make a top 10 Asian REIT.
- MCT shareholders and “The Market” did not like it and sent MCT units lower. MNACT holder Quarz didn’t like it and complained. I wrote about all this.
- But 6+ weeks after looking at new MCT trades as Heads I Win, Tails I Win, I revisit and see no reason to change my mind.
Before it’s here, it’s on Smartkarma
