Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Index Rebalance

<ul>
<li>In this insight, we take a look at the names leading the race to become ADDs/DELETEs for the DAX, MDAX, and SDAX Indices.</li>
<li>Based on current rankings, <a href="https://www.smartkarma.com/entities/commerzbank-ag" target="_blank" data-smartkarma-citation="entities:21596:1" rel="noopener">Commerzbank AG (CBK GR)</a> could move from MDAX to DAX and <a href="https://www.smartkarma.com/entities/puma-se" target="_blank" data-smartkarma-citation="entities:21697:1" rel="noopener">Puma SE (PUM GR)</a> could move from DAX to MDAX.</li>
<li>I also expect multiple changes for the MDAX and SDAX indices including the impact of the recently-listed <a href="https://www.smartkarma.com/entities/dr-ing-h-c-f-porsche-aktiengesellschaft" target="_blank" data-smartkarma-citation="entities:36343:1" rel="noopener">Porsche AG (P911 GR)</a>. </li>
</ul>


In this insight, we take a look at the names leading the race to become ADDs/DELETEs for the DAX, MDAX, and SDAX Indices.
Based on current rankings, Commerzbank AG (CBK GR) could move from MDAX to DAX and Puma SE (PUM GR) could move from DAX to MDAX.
I also expect multiple changes for the MDAX and SDAX indices including the impact of the recently-listed Porsche AG (P911 GR). 


DAX/​​​​MDAX/​​​​SDAX Quiddity Leaderboard Dec 22: Porsche AG Gets a Headstart!

Event-Driven

<ul>
<li>In this insight, we take a look at the names leading the race to become ADDs/DELETEs for the DAX, MDAX, and SDAX Indices.</li>
<li>Based on current share prices, there are no changes for the DAX index. However, there could be multiple changes for the MDAX and SDAX indices.</li>
<li>I have also discussed the index implications for the <a href="https://www.smartkarma.com/entities/dr-ing-h-c-f-porsche-aktiengesellschaft" target="_blank" data-smartkarma-citation="entities:36343:1" rel="noopener">Porsche AG (P911 GR)</a> IPO.</li>
</ul>


In this insight, we take a look at the names leading the race to become ADDs/DELETEs for the DAX, MDAX, and SDAX Indices.
Based on current share prices, there are no changes for the DAX index. However, there could be multiple changes for the MDAX and SDAX indices.
I have also discussed the index implications for the Porsche AG (P911 GR) IPO.


DAX/​​​MDAX/​​​SDAX Quiddity Leaderboard Dec 22: Porsche AG IPO Makes Things Interesting

<ul>
<li>We have completed roughly half of the 20-day Reference Period for the DAX Equity Indices family for the September 2022 Rebalance.</li>
<li>In this insight, we take a look at the names leading the race to become ADDs/DELETEs for the DAX, MDAX, and SDAX Indices.</li>
<li>Three names could move from SDAX to MDAX while the SDAX index could see another 4 ADDs/DELETEs.</li>
</ul>


We have completed roughly half of the 20-day Reference Period for the DAX Equity Indices family for the September 2022 Rebalance.
In this insight, we take a look at the names leading the race to become ADDs/DELETEs for the DAX, MDAX, and SDAX Indices.
Three names could move from SDAX to MDAX while the SDAX index could see another 4 ADDs/DELETEs.


DAX/​​MDAX/​​SDAX Quiddity Leaderboard Sep 2022: Final Expectations

European Event-Driven Analyst

Jesus Rodriguez Aguilar

As of 24 September, the total number of shares tendered, plus the Deutsche Wohnen Shares directly held by the Vonovia, plus the Deutsche Wohnen Shares in respect of which Vonovia was directly and unconditionally entitled to an immediate transfer, and plus the financial instruments relating to the acquisition of Deutsche Wohnen shares directly held by Vonovia amounts to 181,711,364 Deutsche Wohnen shares. This corresponds to approximately 50.49% of the share capital and the voting rights of Deutsche Wohnen.
Vonovia began this round in mid-June, when it launched its first friendly bid to win its competitor. At the time, the cash offer made was €52/share, in addition to the right to cash in the expected dividend of €1.03/share. However, this attempt did not prosper as it just reached a 47.6% support, below the 50% minimum acceptance threshold.
In its second offer this summer, Vonovia raised to €53/share to woo Deutsche Wohnen shareholders. Thus, Vonovia valued its rival at €19.1 bn vs. €18 bn at the beginning of summer.
The resulting merger of the two German real estate companies will result in a conglomerate owning over 500,000 homes on the European market, some 350,000 from Vonovia divided between Germany, Austria and Sweden; and 160,000 from Deutsche Wohnen, which concentrates a good part of its properties in Berlin. The joint valuation of their portfolios reaches €89,000 mn.
Berlin votes in favor of expropriating 240,000 homes in the hands of large companies. Although the vote is non-binding and seems unlikely to materialise, at least via expropriations, pressure is mounting on the Berlin local government to control rents. I anticipate that Berlin local government will continue to buy homes from large owners, but at market prices. The latest purchase was of 14,750 homes from both Vonovia and Deutsche Wohnen for €2,460 mn.
Deutsche Wohnen reported good operational results: FFO I increased by 2% and EPRA NTA increased by 1.4%. Market rents up 6% in Berlin, 35.6% gains on privatisations. The offer price is above the EPRA NTA per share (€52.67/share) as reported on 30 June.
Third time around Vonovia has secured the acquisition. Acceptance period ends on 4 October. Gross spread as of 28 September is 0.03%. The deal should close by mid-October. Recommendation is tender.

As of 24 September, the total number of shares tendered, plus the Deutsche Wohnen Shares directly held by the Vonovia, plus the Deutsche Wohnen Shares in respect of which Vonovia was directly and unconditionally entitled to an immediate transfer, and plus the financial instruments relating to the acquisition of Deutsche Wohnen shares directly held by Vonovia amounts to 181,711,364 Deutsche Wohnen shares. This corresponds to approximately 50.49% of the share capital and the voting rights of Deutsche Wohnen.
Vonovia began this round in mid-June, when it launched its first friendly bid to win its competitor. At the time, the cash offer made was €52/share, in addition to the right to cash in the expected dividend of €1.03/share. However, this attempt did not prosper as it just reached a 47.6% support, below the 50% minimum acceptance threshold.
In its second offer this summer, Vonovia raised to €53/share to woo Deutsche Wohnen shareholders. Thus, Vonovia valued its rival at €19.1 bn vs. €18 bn at the beginning of summer.
The resulting merger of the two German real estate companies will result in a conglomerate owning over 500,000 homes on the European market, some 350,000 from Vonovia divided between Germany, Austria and Sweden; and 160,000 from Deutsche Wohnen, which concentrates a good part of its properties in Berlin. The joint valuation of their portfolios reaches €89,000 mn.
Berlin votes in favor of expropriating 240,000 homes in the hands of large companies. Although the vote is non-binding and seems unlikely to materialise, at least via expropriations, pressure is mounting on the Berlin local government to control rents. I anticipate that Berlin local government will continue to buy homes from large owners, but at market prices. The latest purchase was of 14,750 homes from both Vonovia and Deutsche Wohnen for €2,460 mn.
Deutsche Wohnen reported good operational results: FFO I increased by 2% and EPRA NTA increased by 1.4%. Market rents up 6% in Berlin, 35.6% gains on privatisations. The offer price is above the EPRA NTA per share (€52.67/share) as reported on 30 June.
Third time around Vonovia has secured the acquisition. Acceptance period ends on 4 October. Gross spread as of 28 September is 0.03%. The deal should close by mid-October. Recommendation is tender.

Vonovia Has Already 50.49% Of​Deutsche Wohnen

DAX is a blue-chip index that now tracks the 40 largest companies listed on the Regulated Market of the Frankfurt Stock Exchange. Historically DAX has consisted of 30 companies but following the <a href="https://www.smartkarma.com/entities/wirecard-ag" target="_blank" data-smartkarma-citation="entities:21743:1" rel="noopener">Wirecard AG (WDI GR)</a> scandal, the index was reconstituted and the number of constituents was increased from 30 to 40 to reduce concentration issues and more stringent eligibility requirements were introduced to protect the overall quality of index constituents in future. This reconstitution was completed on 20th September 2021. The DAX Index is reviewed four times a year. In this insight, we take a look at the potential adds and deletes for the next review which will take place in December 2021. More below the fold.

DAX is a blue-chip index that now tracks the 40 largest companies listed on the Regulated Market of the Frankfurt Stock Exchange. Historically DAX has consisted of 30 companies but following the Wirecard AG (WDI GR) scandal, the index was reconstituted and the number of constituents was increased from 30 to 40 to reduce concentration issues and more stringent eligibility requirements were introduced to protect the overall quality of index constituents in future. This reconstitution was completed on 20th September 2021. The DAX Index is reviewed four times a year. In this insight, we take a look at the potential adds and deletes for the next review which will take place in December 2021. More below the fold.

DAX Index: Quiddity Leaderboard for December 2021

Germany

Deutsche Wohnen SE operates as a holding company. The Company, through its subsidiaries, focuses on developing and managing residential and commercial properties. Deutsche Wohnen owns and manages residential and nursing facilities for elderly people. Deutsche Wohnen offers property and lease agreement management, ambulant nursing, and assisted living services in Germany.

Price Gauge
52-week Range	0.00 - 0.00
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Deutsche Wohnen (DWNI GR)

DAX/MDAX/SDAX Quiddity Leaderboard Dec 22: Porsche AG Gets a Headstart!

Recently listed Porsche AG could get added to the MDAX index or the DAX index in the December 2022 index review. The stock has gained some momentum...

Janaghan Jeyakumar, CFA

DAX/MDAX/SDAX Quiddity Leaderboard Dec 22: Porsche AG IPO Makes Things Interesting

Porsche AG's IPO of preferred shares is expected to start trading shortly and there could be interesting index implications for this stock in the...

Janaghan Jeyakumar, CFA

DAX/MDAX/SDAX Quiddity Leaderboard Sep 2022: Final Expectations

Delivery Hero has to climb one rank to get into DAX. MDAX and SDAX could see multiple index changes. Takkt's recent negative momentum could have...

Janaghan Jeyakumar, CFA

Vonovia Has Already 50.49% OfDeutsche Wohnen

Third time around Vonovia has secured the acquisition. Acceptance period ends on 4 October. Gross spread as of 28 September is 0.03%. The deal...

Jesus Rodriguez Aguilar

DAX Index: Quiddity Leaderboard for December 2021

DAX completed its post-Wirecard reconstitution on 20th September 2021. Here is a look at the potential adds and deletes for the next index review...

Janaghan Jeyakumar, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

DAX/​​​​MDAX/​​​​SDAX Quiddity Leaderboard Dec 22: Porsche AG Gets a Headstart!

Recently listed Porsche AG could get added to the MDAX index or the DAX index in the December 2022 index review. The stock has gained some momentum...

Janaghan Jeyakumar, CFA

DAX/​​​MDAX/​​​SDAX Quiddity Leaderboard Dec 22: Porsche AG IPO Makes Things Interesting

Porsche AG's IPO of preferred shares is expected to start trading shortly and there could be interesting index implications for this stock in the...

Janaghan Jeyakumar, CFA

DAX/​​MDAX/​​SDAX Quiddity Leaderboard Sep 2022: Final Expectations

Delivery Hero has to climb one rank to get into DAX. MDAX and SDAX could see multiple index changes. Takkt's recent negative momentum could have...

Janaghan Jeyakumar, CFA

Vonovia Has Already 50.49% Of​Deutsche Wohnen

Third time around Vonovia has secured the acquisition. Acceptance period ends on 4 October. Gross spread as of 28 September is 0.03%. The deal...

Jesus Rodriguez Aguilar

DAX Index: Quiddity Leaderboard for December 2021

DAX completed its post-Wirecard reconstitution on 20th September 2021. Here is a look at the potential adds and deletes for the next index review...

Janaghan Jeyakumar, CFA

DAX/MDAX/SDAX Quiddity Leaderboard Dec 22: Porsche AG Gets a Headstart!

DAX/MDAX/SDAX Quiddity Leaderboard Dec 22: Porsche AG IPO Makes Things Interesting

DAX/MDAX/SDAX Quiddity Leaderboard Sep 2022: Final Expectations

Vonovia Has Already 50.49% OfDeutsche Wohnen