Last Week in Event SPACE: Li & Fung, Hitachi Hi-Chem, Allied Prop, Sing Air, Renesas/Tokyo Electron

Last Week in Event SPACE ...

• With Li & Fung Ltd (494 HK) operations appearing more structurally, and permanently, impaired, as opposed to facing short-term challenges, the privatisation Offer is looking more attractive.
• The later payment date for Hitachi High Technologies Co (8036 JP) lowers the IRR of buying shares in near-space quite significantly. It could mean the shares drop further than thought.
• Allied (373 HK) and 74.99%-held Allied Properties Hk (56 HK) are both suspended pursuant to the Takeovers Code, with APH expected to be privatised. This should not trigger downstream MGOs for its three key listed holdings.
• Stay bearish on Singapore Airlines (SIA SP). There will be plenty of time to own this stock later. The Rights Entitlements (both to Rights Shares and Rights MCBs), if traded on the exchange as they should be, will initially see short-covering and may trade rich, then they and the shares should trade down.
• TOPIX ETF buying by the BOJ should support a Long Renesas Electronics (6723 JP), Short Tokyo Electron (8035 JP) trade which looks attractive purely based on the deviation from historical ratios.

• Plus, other events, CCASS movements and Mood Spins.