Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Yesterday afternoon, <a href="https://www.smartkarma.com/entities/swire-pacific-ltd-cl-a" target="_blank" data-smartkarma-citation="entities:10433:1" rel="noopener">Swire Pacific (A) (19 HK)</a> | <a href="https://www.smartkarma.com/entities/swire-pacific-ltd" target="_blank" data-smartkarma-citation="entities:23726:1" rel="noopener">Swire Pacific (B) (87 HK)</a> announced a new buyback program. The last one was announced August 2022 and ran until the AGM.</li>
<li>That was HK$4bn. In the meantime the company paid an HK$8.12 special div on the Swire As (14%) in September (on top of the HK$1.20 regular div). </li>
<li>Now they have announced a new HK$6bn buyback buying both A Shares and B shares. Details, index impact, historical B/A trading patterns, etc, below.</li>
</ul>


Yesterday afternoon, Swire Pacific (A) (19 HK) | Swire Pacific (B) (87 HK) announced a new buyback program. The last one was announced August 2022 and ran until the AGM.
That was HK$4bn. In the meantime the company paid an HK$8.12 special div on the Swire As (14%) in September (on top of the HK$1.20 regular div). 
Now they have announced a new HK$6bn buyback buying both A Shares and B shares. Details, index impact, historical B/A trading patterns, etc, below.


Swire (19 HK / 87 HK) Announces NEW, Bigger, Better Buyback

David Blennerhassett

<ul>
<li>As <a href="https://www.smartkarma.com/entities/swire-pacific-ltd-cl-a" target="_blank" data-smartkarma-citation="entities:10433:1" rel="noopener">Swire Pacific (A) (19 HK)</a> plumbs new 12-month lows for its NAV discount and implied stub, Swire's B shares have significantly outperformed the As over the past month. </li>
<li>Preceding my comments on Pac, <a href="https://www.smartkarma.com/entities/swire-properties-ltd" target="_blank" data-smartkarma-citation="entities:5775:1" rel="noopener">Swire Properties (1972 HK)</a> &amp; <a href="https://www.smartkarma.com/entities/cathay-pacific-airways-ltd" target="_blank" data-smartkarma-citation="entities:243:1" rel="noopener">Cathay Pacific Airways (293 HK)</a>, are the current setup/unwind tables for Asia-Pacific Holdcos. </li>
<li>These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.</li>
</ul>


As Swire Pacific (A) (19 HK) plumbs new 12-month lows for its NAV discount and implied stub, Swire's B shares have significantly outperformed the As over the past month. 
Preceding my comments on Pac, Swire Properties (1972 HK) &amp; Cathay Pacific Airways (293 HK), are the current setup/unwind tables for Asia-Pacific Holdcos. 
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.


StubWorld: Swire Pac's NAV Discount Widens. Bs Outperform As

<ul>
<li>Yesterday afternoon (5th Dec), <a href="https://www.smartkarma.com/entities/swire-pacific-ltd-cl-a" target="_blank" data-smartkarma-citation="entities:10433:1" rel="noopener">Swire Pacific (A) (19 HK)</a> (and <a href="https://www.smartkarma.com/entities/swire-pacific-ltd" target="_blank" data-smartkarma-citation="entities:23726:1" rel="noopener">Swire Pacific (B) (87 HK)</a>) <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2023/1205/2023120501177.pdf" target="_blank" rel="noopener">announced</a> a large (HK$6bn) buyback.</li>
<li>The response this morning sees Swire A up 14.4% (as I type), and 11.8% for Swire Bs.</li>
<li>I still like the idea of buying Swire A and Swire B outright here.</li>
</ul>


Yesterday afternoon (5th Dec), Swire Pacific (A) (19 HK) (and Swire Pacific (B) (87 HK)) announced a large (HK$6bn) buyback.
The response this morning sees Swire A up 14.4% (as I type), and 11.8% for Swire Bs.
I still like the idea of buying Swire A and Swire B outright here.


<ul>
<li>Last night, Swire Pacific announced it planned to sell its US Coca Cola Distribution business to its parent company. That means a Circular, an IFA Opinion, and an EGM.</li>
<li>I expect a September EGM and the Special Div to follow in Q4. While I find the price low, I expect the deal to be approved by Swire shareholders.</li>
<li>This deal has an effect on the Swire B/A ratio. Some may get it. Some may not. Makes sense to be ready. Swire A is cheap. Swire B is cheaper.</li>
</ul>


Last night, Swire Pacific announced it planned to sell its US Coca Cola Distribution business to its parent company. That means a Circular, an IFA Opinion, and an EGM.
I expect a September EGM and the Special Div to follow in Q4. While I find the price low, I expect the deal to be approved by Swire shareholders.
This deal has an effect on the Swire B/A ratio. Some may get it. Some may not. Makes sense to be ready. Swire A is cheap. Swire B is cheaper.


Swire Coke Sale Special Div Impacts B/A Ratio

Hong Kong

Swire Pacific Limited operates as a holding company. The Company, through its subsidiaries, focuses on real estate, aviation, beverage, industrial, marine services, trading, and industrial businesses. Swire Pacific operates worldwide.

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Swire Pacific (B) (87 HK)

Swire (19 HK / 87 HK) Announces NEW, Bigger, Better Buyback

Swire Pacific (19 HK, 87 HK) have announced a new bigger, better buyback of HK$6bn (last time was HK$4bn, $3.3bn executed). This should be a...

Travis Lundy

StubWorld: Swire Pac's NAV Discount Widens. Bs Outperform As

Unclear why the Bs have outperformed the As. The Bs are illiquid. Not shortable. It may be due to a crowding issue. Swire Pac looks cheap. I'd be...

David Blennerhassett

StubWorld: Swire's Latest Buyback

Swire Pac is cheap at 0.28x P/B, prior to this latest buyback announcement. The conglomerate may get a boost from recent property tweaks. On...

David Blennerhassett

Swire Coke Sale Special Div Impacts B/A Ratio

Swire Pacific announced the sale of its US Coca-Cola distribution business. That means cash inflow, improving the "quality" of the NAV, and there's...

Travis Lundy

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