In today’s briefing:
- FTSE TWSE Taiwan Dividend+ Index: A Rare Gem for Index Rebal Trades
- Link Admin Mulls Dye & Durham’s Upped Bid
- Link Narrows the Price Gap as DND Bumps Its Lowered Offer
- Vltava Fund – Letter To Shareholders Q2 2022
- Softbank Group – Business as Usual
- WCP IPO Preview
FTSE TWSE Taiwan Dividend+ Index: A Rare Gem for Index Rebal Trades
- The FTSE TWSE Taiwan Dividend+ Index is an index of stocks with the highest dividend yields in the universe of the FTSE TWSE Taiwan 50 and Mid-Cap 100 Indices.
- According to our estimates, the historical average return for index rebalance trades seems to be extremely attractive and the potential volume impact can be significant too.
- We feel this is one of the most interesting esoteric indices in the Asia-Pacific region for index rebalance trades.
Link Admin Mulls Dye & Durham’s Upped Bid
- Dye & Durham (D&D) has bumped its offer for Link Administration (LNK AU) to $4.57/share after its prior revised $4.30/share bid was rejected.
- Link shareholders may also receive an additional A$0.13 from the sale of the Banking and Credit Management (BCM) business under the latest offer.
- Link said it will consider the proposal and continue to engage with D&D.
Link Narrows the Price Gap as DND Bumps Its Lowered Offer
- Dye & Durham/DND has bumped its lowered offer by 6.3% to A$4.57 per share. The Link Administration (LNK AU) Board has postponed the 13 July scheme meeting to facilitate discussions.
- DND’s “sweetened” A$4.57 base consideration plus the potential BCM consideration of A$0.13 totals exactly A$4.70 per share. This suggests that Board is aiming for a A$4.70 base consideration.
- DND is clearly interested in Link. Bridging the 2.8% price gap between the buyer’s and seller’s price aspirations is not onerous and suggests a deal can get done.
Vltava Fund – Letter To Shareholders Q2 2022
- Vltava is a global equity investment fund. Our objective is to achieve long-term capital growth of the assets under management while investing primarily into stocks of publicly traded companies.
- Today, inflation is higher by multiples, it is completely out of control, and, as so often happens, the market is again teaching a lesson to those endeavoring to vanquish it.
- Oil companies are today essentially being pilloried for extracting oil at all, meanwhile banks are refusing to finance the needed investments.
Softbank Group – Business as Usual
- Vision Fund head Rajeev Misra will step down from Vision Fund 2 to take a new gig managing money for Midde Eastern partners. His VF1 role is unchanged for now
- Structurally, this does not change very much as Son-san has always been the decision maker on investments and we never considered Misra as a candidate for succession
- After surviving $47bn in public equity losses over the last year, it surprisingly looks like Misra’s departure is voluntary
WCP IPO Preview
- WCP is getting ready for an IPO in Korea in August. This is expected to be one of the largest IPOs in Korea post LG Energy Solution (373220 KS).
- The IPO price range is from 80,000 won to 100,000 won. The IPO base deal size is from $560 million to $700 million.
- WCP is a leading maker of separators which are key materials used in EV batteries.
Before it’s here, it’s on Smartkarma
