Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Equity Analyst with experience in fundamental and event-driven research in Frontier and Emerging markets. 

On Smartkarma, I mainly publish insights on index flow events in the Asia-Pacific region. This includes predicting regular and intra-review index changes and estimating upcoming passive flows. I also cover special situations such as mergers & acquisitions, equity offerings, buybacks, and other corporate restructuring events.

Pan-Asia Index Flows & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

Announced on 28th January, auto parts manufacturers <a href="https://www.smartkarma.com/entities/borgwarner-inc" target="_blank" data-smartkarma-citation="entities:18392:1" rel="noopener">Borgwarner Inc (BWA US)</a> and <a href="https://www.smartkarma.com/entities/delphi-technologies-plc" target="_blank" data-smartkarma-citation="entities:27835:1" rel="noopener">Delphi Technologies PLC (DLPH US)</a> will combine in an all-stock transaction valuing Delphi Technologies at a market cap of approximately US$1.5bn.Delphi Shareholders will receive 0.4534 BorgWarner shares per Delphi share and following the completion of the deal, existing BorgWarner and Delphi shareholders will own 84% and 16% respectively.The Deal, which is conditional on regulatory approvals and Delphi shareholders' approval, is expected to close in the second half of 2020.Although Delphi's shares surged 60% on the news of the Deal, BorgWarner's shares closed 8% down. At present, the combined market cap of the two companies is US$8.40bn and this is lower than its pre-announcement value of US$8.76bn despite the fact the Deal is expected to result in cost synergies.Why are BorgWarner's shareholders unhappy and what does that mean for the Deal?

Announced on 28th January, auto parts manufacturers Borgwarner Inc (BWA US) and Delphi Technologies PLC (DLPH US) will combine in an all-stock transaction valuing Delphi Technologies at a market cap of approximately US$1.5bn.Delphi Shareholders will receive 0.4534 BorgWarner shares per Delphi share and following the completion of the deal, existing BorgWarner and Delphi shareholders will own 84% and 16% respectively.The Deal, which is conditional on regulatory approvals and Delphi shareholders' approval, is expected to close in the second half of 2020.Although Delphi's shares surged 60% on the news of the Deal, BorgWarner's shares closed 8% down. At present, the combined market cap of the two companies is US$8.40bn and this is lower than its pre-announcement value of US$8.76bn despite the fact the Deal is expected to result in cost synergies.Why are BorgWarner's shareholders unhappy and what does that mean for the Deal?

Delphi-BorgWarner: Why Are Acquirer Shareholders Unhappy?