Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Highly experienced ex-Delta One trader with 17 years of experience trading arbitrage and related strategies across Asian markets.

Exempt Financial Adviser (EFA) under CrossASEAN Research Pte Ltd.

It is important to note that the information provided by Periscope Analytics is based on publicly available data and own knowledge, which has been gathered and synthesized from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions.

All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include, but are not limited to, company announcements, exchange filings, ETF and other passive investment vehicle holdings, and free float and volume data from third-party data providers. Periscope Analytics does not guarantee the accuracy and completeness of the forecasts, estimates and/or other information.

Pan-Asia Index Rebalances/ Events/ Delta One

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Event-Driven

Washington H. Soul Pattinson and Co. Ltd / Event-Driven

Washington H. Soul Pattinson and Co. Ltd (SOL AU)

On 22 June, <a href="https://www.smartkarma.com/entities/washington-h-soul-pattinson-and-co-ltd" target="_blank" data-smartkarma-citation="entities:6054:1" rel="noopener">Washington H. Soul Pattinson and Co. (SOL AU)</a> and <a href="https://www.smartkarma.com/entities/milton-corp-ltd" target="_blank" data-smartkarma-citation="entities:29090:1" rel="noopener">Milton Corp Ltd (MLT AU)</a> announced that they had entered into a Scheme Implementation Agreement (SIA) under which <a href="https://www.smartkarma.com/entities/washington-h-soul-pattinson-and-co-ltd" target="_blank" data-smartkarma-citation="entities:6054:1" rel="noopener">Washington H. Soul Pattinson and Co. (SOL AU)</a> would acquire 100% of the shares that it did not already own in <a href="https://www.smartkarma.com/entities/milton-corp-ltd" target="_blank" data-smartkarma-citation="entities:29090:1" rel="noopener">Milton Corp Ltd (MLT AU)</a>.Since then, <a href="https://www.smartkarma.com/entities/milton-corp-ltd" target="_blank" data-smartkarma-citation="entities:29090:1" rel="noopener">Milton Corp Ltd (MLT AU)</a> shares are up 15.5% and <a href="https://www.smartkarma.com/entities/washington-h-soul-pattinson-and-co-ltd" target="_blank" data-smartkarma-citation="entities:6054:1" rel="noopener">Washington H. Soul Pattinson and Co. Ltd (SOL AU)</a> shares are up 13.8%.On 5 August, the Court approved the convening of the Scheme Meeting on 13 September. That resulted in the fixing of the Calculation Date at 2 September.As we near the Calculation Date, it is almost certain that neither of the MACs will be triggered and is it most likely that <a href="https://www.smartkarma.com/entities/milton-corp-ltd" target="_blank" data-smartkarma-citation="entities:29090:1" rel="noopener">Milton Corp Ltd (MLT AU)</a> shares holders will approve the deal.Based on our calculations, as of the close on 26 August, the Net Tangible Assets of <a href="https://www.smartkarma.com/entities/milton-corp-ltd" target="_blank" data-smartkarma-citation="entities:29090:1" rel="noopener">Milton Corp Ltd (MLT AU)</a> are A$5.6469 and MLT shareholders will receive 0.184407 shares of <a href="https://www.smartkarma.com/entities/washington-h-soul-pattinson-and-co-ltd" target="_blank" data-smartkarma-citation="entities:6054:1" rel="noopener">Washington H. Soul Pattinson and Co. Ltd (SOL AU)</a> for each share of <a href="https://www.smartkarma.com/entities/milton-corp-ltd" target="_blank" data-smartkarma-citation="entities:29090:1" rel="noopener">Milton Corp Ltd (MLT AU)</a> that they hold.With the Second Court Hearing date set for 20 September and the effective date on 21 September, the index providers will increase their index shares for <a href="https://www.smartkarma.com/entities/washington-h-soul-pattinson-and-co-ltd" target="_blank" data-smartkarma-citation="entities:6054:1" rel="noopener">Washington H. Soul Pattinson and Co. Ltd (SOL AU)</a> soon after. We expect there will be significant buying on the stock from passive funds and do not expect too many of the current <a href="https://www.smartkarma.com/entities/milton-corp-ltd" target="_blank" data-smartkarma-citation="entities:29090:1" rel="noopener">Milton Corp Ltd (MLT AU)</a> shareholders to sell <a href="https://www.smartkarma.com/entities/washington-h-soul-pattinson-and-co-ltd" target="_blank" data-smartkarma-citation="entities:6054:1" rel="noopener">Washington H. Soul Pattinson and Co. Ltd (SOL AU)</a> stock in the market immediately given the lack of liquid alternatives.<a href="https://www.smartkarma.com/entities/argo-investments-ltd" target="_blank" data-smartkarma-citation="entities:29060:1" rel="noopener">Argo Investments Ltd (ARG AU)</a> could be a beneficiary of flow out of <a href="https://www.smartkarma.com/entities/washington-h-soul-pattinson-and-co-ltd" target="_blank" data-smartkarma-citation="entities:6054:1" rel="noopener">Washington H. Soul Pattinson and Co. Ltd (SOL AU)</a>.

On 22 June, Washington H. Soul Pattinson and Co. (SOL AU) and Milton Corp Ltd (MLT AU) announced that they had entered into a Scheme Implementation Agreement (SIA) under which Washington H. Soul Pattinson and Co. (SOL AU) would acquire 100% of the shares that it did not already own in Milton Corp Ltd (MLT AU).Since then, Milton Corp Ltd (MLT AU) shares are up 15.5% and Washington H. Soul Pattinson and Co. Ltd (SOL AU) shares are up 13.8%.On 5 August, the Court approved the convening of the Scheme Meeting on 13 September. That resulted in the fixing of the Calculation Date at 2 September.As we near the Calculation Date, it is almost certain that neither of the MACs will be triggered and is it most likely that Milton Corp Ltd (MLT AU) shares holders will approve the deal.Based on our calculations, as of the close on 26 August, the Net Tangible Assets of Milton Corp Ltd (MLT AU) are A$5.6469 and MLT shareholders will receive 0.184407 shares of Washington H. Soul Pattinson and Co. Ltd (SOL AU) for each share of Milton Corp Ltd (MLT AU) that they hold.With the Second Court Hearing date set for 20 September and the effective date on 21 September, the index providers will increase their index shares for Washington H. Soul Pattinson and Co. Ltd (SOL AU) soon after. We expect there will be significant buying on the stock from passive funds and do not expect too many of the current Milton Corp Ltd (MLT AU) shareholders to sell Washington H. Soul Pattinson and Co. Ltd (SOL AU) stock in the market immediately given the lack of liquid alternatives.Argo Investments Ltd (ARG AU) could be a beneficiary of flow out of Washington H. Soul Pattinson and Co. Ltd (SOL AU).

Milton - WHSP: Nearing the Finish Line Where HUGE Passive Buying Awaits