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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

In December 2018, <a href="https://www.smartkarma.com/entities/abb-ltd-265e66d1-1d85-42fd-817a-4fbcfbb74f2e" target="_blank" rel="noopener" data-smartkarma-citation="entities:27978:1">ABB Ltd (ABB SS)</a> agreed to sell its global power grids business to <a href="https://www.smartkarma.com/entities/hitachi-ltd" target="_blank" rel="noopener" data-smartkarma-citation="entities:7797:1">Hitachi Ltd (6501 JP)</a> at an enterprise value of $11 billion as part of a plan to simplify its business structure and focus on digital industries. As a part of the global deal, <a href="https://www.smartkarma.com/entities/abb-india-ltd" target="_blank" rel="noopener" data-smartkarma-citation="entities:8703:1">ABB India Ltd (ABB IN)</a> will demerge its power grid business into a separate entity, ABB Power Products and Systems India Limited (APPSIL).Shareholders of <a href="https://www.smartkarma.com/entities/abb-india-ltd" target="_blank" rel="noopener" data-smartkarma-citation="entities:8703:1">ABB India Ltd (ABB IN)</a> on the record date of 23 December will receive 1 share of APPSIL for every 5 shares held in <a href="https://www.smartkarma.com/entities/abb-india-ltd" target="_blank" rel="noopener" data-smartkarma-citation="entities:8703:1">ABB India Ltd (ABB IN)</a>. APPSIL is expected to list on the Indian stock exchanges in January 2020.<a href="https://www.smartkarma.com/entities/hitachi-ltd" target="_blank" rel="noopener" data-smartkarma-citation="entities:7797:1">Hitachi Ltd (6501 JP)</a> will need to make an open offer for APPSIL once <a href="https://www.smartkarma.com/entities/abb-ltd-265e66d1-1d85-42fd-817a-4fbcfbb74f2e" target="_blank" rel="noopener" data-smartkarma-citation="entities:27978:1">ABB Ltd (ABB SS)</a> transfers 80.1% of their stake in APPSIL to them. With minorities holding 25% of APPSIL, this will result in 100% acceptance.<a href="https://www.smartkarma.com/entities/abb-india-ltd" target="_blank" rel="noopener" data-smartkarma-citation="entities:8703:1">ABB India Ltd (ABB IN)</a> has underperformed <a href="https://www.smartkarma.com/entities/siemens-ltd" target="_blank" rel="noopener" data-smartkarma-citation="entities:6440:1">Siemens Ltd (SIEM IN)</a> over the last year and there could be a trade here.

In December 2018, ABB Ltd (ABB SS) agreed to sell its global power grids business to Hitachi Ltd (6501 JP) at an enterprise value of $11 billion as part of a plan to simplify its business structure and focus on digital industries. As a part of the global deal, ABB India Ltd (ABB IN) will demerge its power grid business into a separate entity, ABB Power Products and Systems India Limited (APPSIL).Shareholders of ABB India Ltd (ABB IN) on the record date of 23 December will receive 1 share of APPSIL for every 5 shares held in ABB India Ltd (ABB IN). APPSIL is expected to list on the Indian stock exchanges in January 2020.Hitachi Ltd (6501 JP) will need to make an open offer for APPSIL once ABB Ltd (ABB SS) transfers 80.1% of their stake in APPSIL to them. With minorities holding 25% of APPSIL, this will result in 100% acceptance.ABB India Ltd (ABB IN) has underperformed Siemens Ltd (SIEM IN) over the last year and there could be a trade here.

ABB India - Demerger of the Power Grids Business, Open Offer and a Potential Trade

Switzerland

ABB Limited provides power and automation technologies. The Company operates under segments that include power products, power systems, automation products, process automation, and robotics.

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ABB Ltd (ABB US)

ABB India - Demerger of the Power Grids Business, Open Offer and a Potential Trade

In December 2018, ABB Ltd (ABB SS) agreed to sell its global power grids business to Hitachi Ltd (6501 JP) at an enterprise value of $11 billion as...

Brian Freitas

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