Last Week in Event SPACE: Askul, Chiyoda, Unizo, Xenith, Sakura Sogo, Maanshan, Acacia, EI Group

Last Week in Event SPACE ...

• Any decent online mall with capabilities in packaged and fresh food and other FMCG items is going to be a target from big firms with ambitions in food e-commerce, but trying to separate Lohaco from Askul Corp (2678 JP) is not as simple as just transferring ownership.
• It is not clear where the marginal buying demand for 50mn shares of Chiyoda Corp (6366 JP), which are expected to be sold before month-end, comes from before the earnings report.
• There are trading opportunities as Unizo Holdings (3258 JP) resists H I S Co Ltd (9603 JP)'s Tender Offer, but the long-term prospects of the shares at this price are unconvincing.
• There is money to be had if choosing using maximum scrip after shareholders voted for Xenith Ip (XIP AU)'s scheme.
• Sakura Sogo REIT (3473 JP) is literally doing the same things that it said were bad about the Lion Partners approach, and they are using their incumbency to try to effectively nullify Lion Partners' proposal.
• The restructuring of government-backed shareholders triggers an MGO for Maanshan Iron & Steel H (323 HK); but don't expect it to get up - that's not the Offeror's intention.
• Barrick Gold (GOLD US) proposes a generous Offer for Acacia Mining (ACA LN), however, Acacia shareholders have no alternative.
• EI Group (EIG LN) announced an agreement to be taken over by smaller rival Stonegate at a post-GFC high.
• Plus, other events, CCASS movements and Mood Spins.

(This insight covers specific insights & comments involving Stubs, Pairs, Arbitrage, share Classification and Events - or SPACE - in the past week)

Askul Corp (2678 JP) (Mkt Cap: $1.3bn; Liquidity: $13mn)

Yahoo Japan (4689 JP) and ASKUL have begun an unusual (for Japan) public display of disaffection in the last month. The cause is seemingly Yahoo's desire to grab Lohaco, a division of Askul that Yahoo helped build, and Askul's unwillingness to let it go.

• The real value in Lohaco in Michael Causton's view is its potential to become a platform for online grocery sales. Food e-commerce is about to boom and all the big players are already lined up and building share - with Amazon’s rapidly building Amazon Fresh operation (boosted by the recent tie up with Life) and Rakuten’s joint venture with a newly energised Walmart Japan (Seiyu) - and many would like to get a hold of Lohaco to facilitate this expansion.
• Yahoo has nothing in this area at all and desperately needs a partner to make this happen. Yet Lohaco is integrated into the Askul operation and depends on some of Askul’s key areas of expertise such as inhouse deliveries, manufacturer collaborations and private label development. Yahoo alone does not have any of these capabilities, relying as it does on merchants for most of the legwork. If Yahoo did acquire Lohaco from Askul, it may not be able to achieve the same level of performance as Askul is now beginning to generate.
• Lohaco, however, is already tied with a big partner: it is working with Seven & I on the fresh food section of its online mall called IY Fresh. This partnership has been going since 2017 and Seven & I stated in its new annual report that it sees a strong future for IY Fresh and its e-commerce operations.
• Yahoo said it would "continue its policy of not requesting the transfer of LOHACO business", which Askul claims is false. Now that Yahoo Japan has publicly decided that it doesn't want control of Lohaco per se, but does want to make sure that Iwata-san is out, what is the disposition of the remaining directors? Everyone now knows that if Yahoo Japan and/or Softbank invests in your company and you want to maintain control, you need to make sure that you have a block in place so that they do not get over 50% to knock out directors against an alliance agreement, because it has now been shown that they WILL go against an agreement they have signed.

links to:
Michael's insight: Everyone Wants to Buy Askul’s Lohaco, Not Just Yahoo
Travis Lundy's insight: ASKUL Vs Yahoo Japan - Receipts Provided

Chiyoda Corp (6366 JP) (Mkt Cap: $835mn; Liquidity: $13mn)

Chiyoda is getting deleted from the Nikkei 225 and from TOPIX at the end of the month. In Chiyoda: Risks to the Index Kick-Out Trade and Potential Volatility at Earnings the Next Day Mio Kato noted the large outstanding short base in the name and discussed the implications for a squeeze. This appears to have come through. There are also a LOT of shares for sale on 31 July.

• It appears that borrow was being recalled earlier this week as disclosed short positions plunged. Assuming UBS and Credit Suisse have just less than the 0.5% outstanding short required for disclosure and that Integrated Core Strategies newly built their entire short position, outstanding short shares have fallen about 2.25m shares. Assuming UBS and Credit Suisse are completely out and that Integrated Core Strategies was just below the 0.5% threshold previously would mean that outstanding shorts have fallen about 6.15m shares.
• Mio considered (at the time of his note) it likely that this squeeze could continue for a few more days and the risk reward on the long side seemed attractive, at least into the end of this past week. For those able to get a good handle on borrow availability that should give you a better indication of the potential staying power of this squeeze. At some point before the 31st this should peter out and most or all of these gains should be given up, so if it is possible to hold on to your borrow, that could be another opportunity that opens up within the next few days. He would again look at the name on the long side going into earnings on the 1st Aug.
• There are, by Travis's calculation, approximately 50mn shares of Chiyoda to sell on 31 July at the close. He was reluctant to say the stock could go much higher. He simply does not know where the clearing point is of retail selling their shares into strength, or active position longs selling out because the squeeze has happened. He was inclined to think the shares could be flat to up a bit or even strongly until the recall-driven buying runs into index selldown positioning which he would expect to start in earnest (this past) Friday or Monday (tomorrow).

links to:
Mio's insight: Chiyoda: Squeeze Coming Through
Travis' insight: Chiyoda in Full Squeeze - For Now

Kajaria Ceramics (KJC IN) (Mkt Cap: $1.1bn; Liquidity: $1mn)

On the 22 July, the National Stock Exchange of India published a list of nine stocks that would be excluded from the Futures and Options segment of the market with effect from September 26. The list includes Arvind Ltd (ARVND IN), Engineers India (ENGR IN), Hindustan Zinc (HZ IN), Idbi Bank Ltd (IDBI IN), Kajaria, Multi Commodity Exch India (MCX IN), Oracle Financial Services (OFSS IN), Raymond Ltd (RW IN) and Birlasoft Limited.

• How do stocks perform when excluded from the F&O segment? On April 22, NSE published a list of 34 stocks that would be excluded from the F&O segment with effect from June 27. Over that period, on average, the 34 stocks lost 14.2% with just 9 names showing positive returns. This was in contrast to the Nifty which returned 2.13%, the midcap index which was lower by 0.25%, and the small cap index which was down by 5.32%. The best performer returned +15.43% while the worst performer lost 65.25%.
• Volumes were higher than average for most stocks between the announcement date and the exclusion date, but have fallen by half post the exclusion. Similar price drops have been seen in earlier cases of stocks being excluded from the F&O segment too.

(link to Brian Freitas insight: The Tail Wags the Dog Redux)

Unizo Holdings (3258 JP) (Mkt Cap: $1bn; Liquidity: $11mn)

Unizo's board has released its Position Statement on the Tender Offer by H I S Co Ltd (9603 JP) as discussed in HIS Hostile Tender for Unizo - Fun Ahead! with a response which is effectively a demand for further information. This seems like a delaying tactic. The questions themselves are reasonably biting and hard-hitting as questions go in this kind of situation.

• If it had been done in conjunction with an effort to produce an independent appraisal of the properties which would produce an RNAV much higher than book value, it would provide cover for someone else to come in as a white knight.
• Travis expects several defense possibilities still exist: UNIZO could present a higher RNAV with a presentation showing clear expertise in offices where H.I.S. has none, and an H.I.S. effort to take the company over on the cheap. If UNIZO wanted to be aggressive, it could decide to raise its dividend payout ratio to 50% or more. A friendly cross-holding party or different friendly are other possibilities.
• Travis is Bullish because he expected there to be an opportunity to buy the shares as they come down to a 1.0-2.5% premium to the H.I.S. Tender Offer Price and then sell them a bit higher. He also sees a trading opportunity in the hostile nature of the event. He also thought there is money to be made on the short side if UNIZO cannot come through with a solid defence. He would not want to be long the shares at ¥3200/share post-Tender Offer.

(link to Travis's insight: UNIZO Board Statement on HIS Tender - No Opinion Yet)

Xenith Ip (XIP AU) (Mkt Cap: $150mn; Liquidity: $1mn)

Xenith's shareholders emphatically approved IPH Ltd (IPH AU)'s Offer by way of a Scheme. Seven people were present and voted, with a further 254 shareholders voting via proxy. 99.99% of shares present and via proxy voted FOR the Scheme. Shares will be suspended at the close of trading this Thursday, the 1 August.

• Currently trading flat to terms if choosing using maximum scrip, scaled back, or 0.2203 IPH shares plus A$0.63/share, but it is moving around a lot. Payment/settlement of the Scheme terms is on the Implementation Date or in about three weeks.

(link to my insight: Xenith-IPH Merger: Take That Last Little Bit)

Sakura Sogo REIT (3473 JP) ("SSR") (Mkt Cap: $297mn; Liquidity: $2mn)

On May 10th this year, a fund called Lion Partners, which is part of the Star Asia Group, announced a proposal to merge Star Asia Investment (3468 JP) ("Star Asia" or "SAR") with SSR to improve its management and governance. Lion Partners - associated with the sponsors of Star Asia Investment - was at the time, and remains, one of the larger shareholders of the Sakura Sogo REIT at roughly 3.6% of units outstanding.

• Star Asia then called for an EGM which would take place in July 2019 to change the Executive Director of the REIT and to change the Asset Manager of the REIT to Star Asia. The managers of the two REITs (SSR and SAR) would then conduct negotiations to come up with a win-win situation for the unitholders of both REITs, targeting a merger agreement in Sep 2019, unitholder meetings to approve afterwards, and a merger executed in about Feb 2020.
• SSR said they weren't consulted - plus lots of other substantially less friendly things - then announced that its management team was negotiating with Mirai Corp (3476 JP) on a possible merger. With no terms yet announced. And noted that the upcoming EGM would ask unitholders to change directors and assign a new manager to the surviving entity if the merger was approved, using the same captive 50% majority that was bad when Lion Partners suggested changing directors and managers.
• This situation is an ideal one to study the structural awfulness of J-REIT governance practices. Sponsors are entrenched and will do anything they can to stay that way. The current trading ratio (SSR / Mirai) was 1.76. The three-month average prior to 10 May is 1.7614. Travis would buy at 1.65 and below. He would unwind at 1.85 or higher and short at 1.95 or better. But overall, he is quite bearish the governance displayed by SSR.

(link to Travis's insight: Sakura Sogo/Mirai: White Knight Guess The Ratio Isn't Easy Pickings)

Maanshan Iron & Steel H (323 HK) (Mkt Cap: $3.2bn; Liquidity: $7mn)

On the 31 May this year, Maanshan announced Anhui SASAC and China Baowu had entered into an agreement, such that Anhui SASAC will transfer 51% of the equity interest held by it in Magang Group to China Baowu for nil consideration. The remaining 49% equity interest in Magang will remain with Anhui SASAC. Magang holds 45.54% in Maanshan via its A-shares.

• Maanshan has now updated the equity transfer, the completion of which will trigger a conditional Mandatory General Offer (MGO) for H shareholders at $2.97/share, a 1.37% premium to last close. The equity transfer remains subject to a number of conditions, including the CSRC waiving China Baowu's obligation to make a General Offer for Maanshan's A-shares.
• China Baowu sought a similar waiver from Hong Kong's SFC towards making a general offer for Maanshan's H shares, but was denied. Therefore, the low-ball 1.37% premium is there to disincentivise shareholders to tender. Baowu does not want to delist Maanshan and has made this clear in the announcement. The MGO tender period will only remain open for the minimum period.

• The US-China trade dispute has resulted in Angang, Baoshan, and Maanshan all trading below their 10-year historical average P/BV. This is further amplified if taking a shorter time frame of say three or five years. China's steel market has sought to reduce its reliance on external trade. Yet the industry is vulnerable, and China has excess capacity. Expect government-backed companies like Baowu (and its affiliates) to further lead industry consolidation.

(link to my insight: Maanshan & Baosteel Forged)

Sanyo Chemical Industries (4471 JP) (Mkt Cap: $1.1bn; Liquidity: $4mn)

On May 29, Sanyo Chem and Nippon Shokubai (4114 JP) jointly announced they had reached a Basic Agreement to consider a “Business Integration” based on an equal footing. The discussions are expected to last until December and would come up with a framework for such an integration including management, board, business line integration and disposition, and merger ratio. They would then seek shareholder approval in June 2020 to merge in October 2020.

• The two companies are looking at a merger based on a spirit of equality despite the fact that Sanyo Chem was less than half the size of Nippon Shokubai. Travis's view at the time was that he expected better earnings growth to help propel Sanyo Chem but that Silchester International might buy more Nippon Shokubai in the meantime. He preferred to buy the Sanyo Chem / Nippon Shokubai ratio 10% lower at the time.
• Silchester has now bought more Nippon Shokubai and the ratio was > 10% lower. From here, Travis thought the odds are decent that Sanyo Chem could outperform Nippon Shokubai between here and the day after the merger ratio is announced. He thought the merger ratio should come in higher than the current ratio.
• Travis would buy the Sanyo Chem/Nippon Shokubai ratio here (at the time of his report), and would be ready to add more if the ratio goes materially lower - say to 0.70.

(link to Travis's insight: Sanyo Chem - Nippon Shokubai Merger Ratio Is a BUY)

Pacific Energy (PEA AU) (Mkt Cap: $293mn; Liquidity: $1mn)

Remote power station operator PEA has agreed to a Scheme of Arrangement with Brisbane-based QIC Private Capital at A$0.975/share, cash, a 35.4% premium to last close. The cash consideration includes a $0.015/share fully franked dividend.

• Kenneth Hall, PEA's ED and the founder of Kalgoorlie Power Systems - the acquisition of which transformed PEA into what it is today - will vote his 48.7% stake in favour on the Scheme. The remaining directors have also confirmed they will vote their shares toward the Scheme.
• The fully franked dividend of A$0.015 is expected to be paid on or shortly before the implementation date of the Scheme.
• This is a straightforward takeover situation. You have an agreed deal, a solid premium to last close - a price that reflects recent upward revisions in earnings - and major shareholder support, plus a life-time high Offer price. The question is whether the Canadian pension fund OPTrust will come over the top. Trading at terms with an expected completion early-November

(link to my insight: QIC Takes Pacific Energy Into Its Fold)

Harbin Electric Co Ltd H (1133 HK) (Mkt Cap: $533mn; Liquidity: $3mn)

Despite the unprecedented two-month extension, the lapse of the voluntary cash Offer for Harbin was always a very real possibility, as reflected in the wide spread to terms for the majority of the tendering period. Nevertheless, no other Hong Kong takeover has come so close to satisfying the acceptance condition, and failing. Only New World Dept Store China (825 HK)'s lapsed Offer in 2017 provides a comparative study.

• Shares tendered were expected to be returned on or before the 29 July. I expected another leg down in the share price around this time, following the 24.2% drop immediately after the lapse deal. Which occurred on the 25 July, with shares falling to $2.44, below the undisturbed price, on decent volume.
• The rules need to be reviewed for PRC incorporated companies. This two-step, merger by absorption process exists as there is no regulatory mechanism to compulsorily acquire minorities of PRC-incorporated companies. But when you have 99.13% of a share class voting FOR a delisting AND 88.3% tendering, and it still fails, something is not right.
• Questions remain - why the 90% tendering condition? Why Harbin's acceptance condition could not be waived, as it was in the case for some prior Merger by Absorptions Offers? And why did Harbin Electric Corporation - the Offeror - choose not to buy any shares during the tendering period?

(link to my insight: Post-Mortem on Harbin Electric)

Asiana Airlines (020560 KS) (Mkt Cap: $1.1mn; Liquidity: $22mn)

KDB is scheduled to put out a public notice of the Asiana sale. Only Aekyung Group has publicly shown interest. But apparently, Aekyung isn't KDB's first choice due to its size, and KDB prefers bigger chaebols. This means either SK, GS and Hanwha are expected to be KDB's top pick.

• All attention is now being placed on SK Group. Several other chaebols are directly or indirectly showing interest. But if SK is in, Sanghyun Park believes you can consider that this race is pretty much over. The question remains - is SK interested?
• Kumho is saying that Kumho Petro Chemical (011780 KS) isn't allowed to participate in the bidding for Asiana. But Kumho Petro insists there is no legal ground to stop itself from buying Asiana ... although it says it currently has no intention to buy Asiana.

(link to Sanghyun's insight: SKT's Asiana Takeover & Intermediate Holdco Conversion Timeframe)

Briefly ...

Toyota Motor (7203 JP) and Denso Corp (6902 JP) will partner again to form a separate venture that would assist the auto manufacturer in its ADAS development. This strategic investment, which follows Denso’s integration with Toyota’s ECU and formation of the TRI-AD, alongside its investment in other semiconductor companies, is just another indication of the changes in the company’s business model and its advancements towards being the first mover in ADAS. (link to Aqila Ali's insight: Another Move by Denso to Accelerate Its ADAS Game)

Acacia Mining (ACA LN) (Mkt Cap: $1.1nn; Liquidity: $2mn)

Acacia has finally backed an increased takeover by parent Barrick Gold (GOLD US). Barrick is offering 0.168 GOLD share for every Acacia share - a ~10% increase to its initial 0.153 scrip offer back in May - implying an Offer Price of 232p/share, a 54% premium to Acacia's closing price of 151p on May 20, the day before Barrick's first approach.

• Since June 2017, Acacia has not been permitted to participate in discussions with the Government of Tanzania (“GoT”). In its place, Barrick has been negotiating with the GoT to seek a basis for a settlement of Acacia’s ongoing disputes with the GoT and to establish a viable framework under which Acacia could resume full operations.
• Acacia's only fall-back option to protect its assets is arbitration proceedings, which have only served to stoke tensions between the two parties. Acacia returning to normalised operating environment appears remote. Without the Offer, Barrick (rightfully) does not consider there is any credible alternative solution which will preserve value for all stakeholders. It was a logical and foregone conclusion for Barrick to take over Acacia.
• While the increase in the exchange ratio from the earlier proposal is welcome, the big lift in the valuation comes from the 41% increase in Barrick's share price since the first Offer was tabled back in May. Barrick will also undertake a process to sell off Acacia's exploration assets - with an indicative value of US$48mn or 9.4 p/share - with proceeds paid to Acacia shareholders via special dividends at some (as yet undefined) later date.
• The negotiation period between Acacia and Barrick was extended to enable Barrick to reach out to minorities. Barrick has ticked all the right boxes, in its discussions with GoT, and offering shareholders GOLD scrip enabling Acacia shareholders to remain invested in Acacia's Tanzanian mining interest. Expect this deal to get up.

(link to my insight: Barrick/Acacia: Now, Let The Grown-Ups Talk)

EI Group (EIG LN) (Mkt Cap: $1.5bn; Liquidity: $6mn)

TDR-owned UK pub company Stonegate and UK's largest pub company EIG announced that they have reached an agreement for Stonegate to acquire its larger rival EIG at a cash consideration of 285 pence per EIG share, which translates to an equity value of £1.27bn, the highest since before the GFC. The offer price translates to strong premiums of 38.5% and 37.7% to the pre-announcement closing price and the 6-month VWAP respectively. In addition to this, the offer price is also 26.8% higher than EIG's 10-year high of 224.8 pence which was achieved in May 2019.

• EIG's shareholders will see this as a favourable exit opportunity given the challenges the company has been facing due to rising labour and operating costs, changing consumer dynamics and the negative impact of the revisions to the 'beer tie' rules in 2016. At the time of writing, EIG's shares are trading very close to terms.
• The deal is conditional on the receipt of approval from EIG's Shareholders (representing at least 75% of the votes cast at the GM), European Commission and/or CMA anti-trust clearances, and regulatory clearances from the FCA. The Acquisition is expected to become effective in the first quarter of 2020.
• Travis thought this is better purchased below 280p and unwound at the 283.5 level or just higher. He expected it is something to trade back and forth for the foreseeable future. If you are a long-only investor and expect a very weak market and further weakness in the restaurant and food service sector, this is a "dead money long" which would likely outperform an ugly market. If you are remotely bullish the market, it is time to get out now and allocate your money elsewhere.

(link to Travis' insight: Purchasing the Publican: EI Group as Target)

Pioneer Foods Group Ltd (PFG SJ) (Mkt Cap: $1.3bn; Liquidity: $5mn)

Pepsico Inc (PEP US) is offering shareholders of PFG ZAR110/share, a premium of ~ 56% to the undisturbed price, by way of a Scheme of Arrangement. A dividend upwards of ZAR2.19/share may be paid should the implementation of the Scheme occur after the 30 September 2019, which appears likely.

• 52.85% of PFG's register has given an irrevocable to vote in favour of the Scheme. This includes Zeder Investments, Pioneer’s largest shareholder with 28.23%. PSG Group Ltd (PSG SJ), Zeder's largest shareholder with 43.8%, has in turn given an irrevocable to vote in favour of Zeder's special resolution to sell its stake in PFG. Zeder has been the largest shareholder in PFG for almost 13 years.
• The takeover metrics (LTM PER & EV/EBITDA of 22.3x & 12.4x) for PFG appear fair with respect to domestic peers and in comparison to large European comps.
• This is a done deal. Trading at a gross/annualised spread of 8.2%/14.6%, assuming late February 2020 completion and including the dividend, providing a reasonable risk/reward.

(link to my insight: PepsiCo/Pioneer Foods: It's All About Growth)

Genting Bhd (GENT MK) / Genting Malaysia (GENM MK)

I estimate GENT is trading at a 40% discount to NAV, bang in line with its one-year average. GENM accounts for only 23% of GENT's NAV - a larger % is contributed by Genting Singapore (GENS SP) - so it's a weakish stub. A simple ratio between the two provides context as to why the pair is coming up in my monitor.

• Rumours abound GENM has struck a deal with 20th Century Fox, paving the way for its theme park to open its doors to the public. GENM 's shares have popped. Back in November last year, Fox and Walt Disney pulled out of an agreement with GENM to build a theme park using the design and intellectual property rights owned by Fox.
• Neither GENM nor Fox have provided recent guidance. GENM reckons Walt Disney wanted no association with a gaming company due to Disney’s 'family-friendly' brand strategy. Fox alleges GENM failed to ignore quality standards time after time. GENM countered that Fox’s attempt to blame Genting was designed to divert attention away from its own incompetence and inexperience.

• Good luck second-guessing when these two parties can reconcile. For now, a lot of the positive rumours are baked into GENM's share price. I would not back GENT to materially move upward from here premised on the facts as they present themselves.

(link to my insight: StubWorld: Genting And Theme Park Rumours, Strategic Float Supports Matheson)

Briefly ...

Around two weeks ago, I tilted (StubWorld: Matheson Nudges Strategic Headroom) in favour of JM as my correspondences with Jardines indicated the % held by JM in JS following a spate of buying in JS in 2018 up to June, was just shy of the maximum 85% it is permitted to buy. That was the right call. I now see the simple ratio (JM/JS) at 1.77x against an eight-year average of 1.7x. It may move a little higher from here - the long-term average, going back to 2002 (as far back as CapIQ allows me) is 1.79x.

• A long night for Gbst Holdings (GBT AU)'s directors, lawyers and bankers. GBST announced FNZ Group proposed a "binding" $4/share Offer by way of Scheme, conditional on GBST entering into a SID by 8PM (AEST) last Thursday night. Apparently, it was not deemed” binding”, so that Offer lapsed. At 1.22AM, FNZ came back with a $3.95/share proposal, on similar terms, which would lapse at 3AM. Which it did. This followed another proposal at 3.10AM of $3.90/share, on similar terms, which would lapse at 9AM, which it also did. Ss&C Technologies (SSNC US)'s due diligence continues with an indicative Offer price of $3.60/share.

• Ap Eagers Ltd (APE AU) Offer for Automotive Holdings (AHG AU) is now conditionally authorised by the ACCC with the divestiture of its existing car dealerships in the Newcastle and Hunter Valley Region. On the 19 July, APE announced it held 61.529% in AHG via its direct stake and the institutional acceptance facility.

• China Power New Energy Development Co (735 HK)'s shareholders approved all resolutions at the Scheme Meeting. The expected effective date is the 19 August.

• On the previous Friday, the Reliance Nippon Life Am (RNAM IN) Independent Director Committee recommended the deal. On Sunday, the end-June RNAM shareholder breakdown was released. Foreigners and "Bodies Corporate" were the big buyers of shares in the two offerings by Reliance Capital (RCAPT IN). Nothing changes Travis's opinion that this is likely to end up with non-promotor non-Reliance Capital shareholders holding VERY little shares, and Reliance Capital being the bulk of the remainder, and this heading to a Delisting Offer.

• Pksha Technology (3993 JP) priced its JPY 20bn offering at JPY 5897 - a 3% discount to the close. The stock is now 90x sales.

• Melco Resorts & Entertainment (MLCO US) has delayed the dispatch of the circular for the acquisition of 19.99% in Crown Resorts (CWN AU) to 25 October from 26 July.

My ongoing series flags large moves (~10%) in CCASS holdings over the past week or so, moves which are often outside normal market transactions. These may be indicative of share pledges. Or potential takeovers. Or simply help understand volume swings.

Often these moves can easily be explained - the placement of new shares, rights issue, movements subsequent to a takeover, amongst others. For those mentioned below, I could not find an obvious reason for the CCASS move.