In today’s briefing:
- Index Rebalance & ETF Flow Recap: MSCI, TOPIX, KT/SKT, GoTo, Yangzijiang, Emperador, SK Shieldus
- DIDI Decides To Delist – Now It Gets Messy
- Merger Arb Mondays (18 Apr) – Yashili, VNET, Sezzle, Link Admin, Razer, Excelpoint, Guodian
- Renesas (6723 JP) – On Top of Peer-Beating Growth, and Valuation… Watch for Buybacks
- DiDi to Vote on US Delisting on 23 May
Index Rebalance & ETF Flow Recap: MSCI, TOPIX, KT/SKT, GoTo, Yangzijiang, Emperador, SK Shieldus
- The review period for the MSCI May SAIR starts on Monday, 18 April and will run for 10 trading days, though MSCI usually selects one of the first five days.
- GoTo (GOTO IJ) listed during the last week and could be a Fast Entry to the IDX indices. The Yangzijiang Shipbuilding (YZJSGD SP) spinoff has index implications.
- Relatively large inflows into China focused ETFs during the week, while there were outflows from Korea focused ETFs.
DIDI Decides To Delist – Now It Gets Messy
- The company was told a year ago that it had data problems. It was then told in June it had serious data problems and was given 15 days to fix.
- It did not. It listed itself, against the wishes of the regulators. Then it got in serious hot water. And it has only been getting hotter.
- A hoped-for HK Listing By Introduction was nixed 5 weeks ago. Now the Company is simply going to delist to try to solve its problems behind closed doors before relisting.
Merger Arb Mondays (18 Apr) – Yashili, VNET, Sezzle, Link Admin, Razer, Excelpoint, Guodian
- We summarise the latest spreads and newsflow of merger arb situations covered by us across Hong Kong, Australia, New Zealand, Singapore and the US (Chinese ADRs only).
- This week, the highest gross spreads are Yashili International Holdings (1230 HK), 21Vianet Group (VNET US), Sezzle Inc (SZL AU), Link Administration Holdings (LNK AU), Razer Inc (1337 HK).
- The lowest gross spreads are China Logistics Property Holdings (1589 HK), Virtus Health (VRT AU), 51 Job Inc Adr (JOBS US), Uniti Group Ltd (UWL AU), Irongate Group (IAP AU).
Renesas (6723 JP) – On Top of Peer-Beating Growth, and Valuation… Watch for Buybacks
- A bit over a year ago Renesas Electronics (6723 JP) announced its transaction to buy Dialog Semiconductor (DLG GR) for €4.8bn (roughly ¥624bn) and the transaction closed end-August 2021.
- In September, Renesas announced a “Progress Update” covering various business segments, expectations for supply in the sector, and eventual “shareholder return” policy.
- This past week the Nikkei carried an article talking about a possible stock buyback later this year. I explore.
DiDi to Vote on US Delisting on 23 May
- DiDi Global (DIDI US) will hold an EGM on 23 May to vote to delist the ADS from the NYSE. The shares will not be listed on another exchange before delisting.
- Due to the regulatory restrictions, DiDi is losing market share and pricing power to competitors in China. The 4Q21 results were poor.
- Directors and key pre-IPO investors together account for 48.2% of outstanding shares, suggesting that the ordinary resolution will pass.
Before it’s here, it’s on Smartkarma
