In today’s briefing:
- S&P/ASX Index Rebalance Preview (Sep): Plenty of High Impact Changes
- Toyo Cancels Poison Pill At Last Minute – Range to the Upside
- Hutch Tel (215 HK): Something’s Brewing
- Tianqi Lithium A/H Listing – PHIP Updates and a Closer Look at Valuations
- Kakao Pay’s MSCI Float Should Be 55% at Aug QIR Based on the Case of Kakao Games
S&P/ASX Index Rebalance Preview (Sep): Plenty of High Impact Changes
- There could be one change to the S&P/ASX 200 (AS51 INDEX) in July following the privatisation of Uniti Group Ltd (UWL AU).
- Then there will be a whole bunch of changes to the S&P/ASX 100 Index, S&P/ASX 200 (AS51 INDEX) and S&P/ASX 300 Index in September as part of the regular rebalance.
- There is large short interest on a couple of the potential adds and a lot of the potential deletes. That will drive stock price moves closer to implementation.
Toyo Cancels Poison Pill At Last Minute – Range to the Upside
- On 24 May, Toyo Construction (1890 JP) (TC) came out fighting against Yamauchi No.10 Family Office (YFO), presenting a poison pill and accusing YFO of “extreme dishonesty” despite standstill agreement.
- YFO presented hundreds of pages of defence, TC continued to accuse the YFO co-CIO and others of wrongdoing. To me, TC was clearly acting in bad faith.
- After ISS and later Glass Lewis came out against TC’s proposal, YFO continued to ask for the PP to be pulled, TC has finally relented. Now we wait some more.
Hutch Tel (215 HK): Something’s Brewing
- Hutchison Telecommunications (215 HK)‘s share price is up 33% month to date.
- The average volume in June has been 11.9mn shares per day, compared to 3.8mn shares on average over the past year, and 3mn in the past six months.
- Of interest, Southbound buying has accelerated in the last two weeks, with a holding of 0.76% of shares out, up from 0.11% at the beginning of the month.
Tianqi Lithium A/H Listing – PHIP Updates and a Closer Look at Valuations
- Tianqi Lithium (TL) is looking to raise up to US$1.5bn via its H-shares listing. It undertakes mining of lithium ore and manufacturing of lithium concentrate, lithium compounds and derivatives.
- TL was the largest producer of mined lithium globally in terms of output and ranked third in terms of revenue generated from lithium in 2020, according to Wood Mackenzie .
- In this note, we take a closer look at valuations and where peers are trading in terms of A/H premium.
Kakao Pay’s MSCI Float Should Be 55% at Aug QIR Based on the Case of Kakao Games
- The MSCI immediately included 4.31% owned by Netmarble in Kakao Games’ float by applying one of the exception rules in Sections 3.2.4 or 3.2.5 of the MSCI GIMI Methodology Book.
- The exception rule used here must have been this one: Re-estimating free float figures resulting from the reclassification of shareholders from strategic to non-strategic.
- I can’t find a reason why this practice of the MSCI shouldn’t be equally applied to Alipay’s Kakao Pay stake.
Before it’s here, it’s on Smartkarma
