In today’s briefing:
- Toyo Construction (1890) Funkier Still
- China Conch (586 HK): Post-Spinoff Blues
- Daiho Post-Div STILL Trading Too Rich For the Event Trade
- ECM Weekly (3rd Apr 2022)- JD, Tencent, Prosus, One Store, SK Shieldus, FWD, Ferretti, Recbio, Belle
- Asia-Pac Weekly Risk Arb Wrap: Uniti, Toyo Construction, Irongate, Crown, CIMIC, Jin Jiang Capital
Toyo Construction (1890) Funkier Still
- Toyo Construction (1890 JP) situation changes day by day. In three days we have three Large Shareholder Report filings as The Expected Activist ducked out, replaced by A New Entrant.
- Now one has to consider what the rest of this week has looked like.
- And we wonder who it is, but reading between the lines can get you to a place where one might see what the aim is.
China Conch (586 HK): Post-Spinoff Blues
- In my last note, I thought China Conch Venture Holdings (586 HK) (CCV) appeared fully-priced. If I had been long CCV, I recommended getting out.
- CCV shed HK$11.35/share after going ex- the China Conch Environment Protection Holdings (587 HK) (CCEP) water treatment in-specie spin-off. CCEP closed at HK$9.77/share on its first day of trading.
- CCV is trading back to around levels prior to the announcement of the spin-off. Separately, CCEP appears to be trading rich relative to waste treatment peers.
Daiho Post-Div STILL Trading Too Rich For the Event Trade
- 10 days ago, Daiho Corp (1822 JP) announced an exit for Murakami-san who had gone from zero to 42% of voting rights buying 18% of volume over two years.
- They found a kind of white knight to buy the shares Murakami-san wanted to sell. The structure looks “fair” but is not. Almost all investors are now buying through terms.
- And the result looks expensive with a rather unfortunate forward flow profile.
ECM Weekly (3rd Apr 2022)- JD, Tencent, Prosus, One Store, SK Shieldus, FWD, Ferretti, Recbio, Belle
- Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
- Placements continued to flow in, at a slower pace than last week, with Malaysia and ANZ chipping in.
- While the HK IPO scene failed to produce anything noteworthy with its two listing, South Korea appears to be leading the charge, once again.
Asia-Pac Weekly Risk Arb Wrap: Uniti, Toyo Construction, Irongate, Crown, CIMIC, Jin Jiang Capital
- There are 33 – mostly firm – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
- A quiet week with no new deals discussed on Smartkarma.
- Key updates took place for: Razer (1337 HK), Uniti Group (UWL AU), Toyo Construction (1890 JP), Irongate (IAP AU), Crown (CWN AU), CIMIC (CIM AU), Jin Jiang Capital (2006 HK)
Before it’s here, it’s on Smartkarma
