Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>This price for <a href="https://www.smartkarma.com/entities/toyota-industries-corp" target="_blank" data-smartkarma-citation="entities:4500:1" rel="noopener">Toyota Industries (6201 JP)</a> is WAY too light. Hold, don't sell. If it trades below or at terms, buy more. Quickly. Expect it will go higher.</li>
<li>Perhaps the simplest solution is to offer <a href="https://www.smartkarma.com/entities/glencore-plc" target="_blank" data-smartkarma-citation="entities:764:1" rel="noopener">Glencore (GLEN LN)</a> shareholders the option of <a href="https://www.smartkarma.com/entities/rio-tinto-ltd" target="_blank" data-smartkarma-citation="entities:13:1" rel="noopener">Rio Ltd (RIO AU)</a> or <a href="https://www.smartkarma.com/entities/rio-tinto-plc" target="_blank" data-smartkarma-citation="entities:22114:1" rel="noopener">Rio PLC (RIO LN)</a>, which would naturally compress the dual-class spread.</li>
<li>
<a href="https://www.smartkarma.com/entities/simcere-pharmaceutical-group" target="_blank" data-smartkarma-citation="entities:29186:1" rel="noopener">Simcere Pharmaceutical (2096 HK)</a> is spinning-off and listing 83.1%-held Simcere Zaiming on the HKEx. Often, the sum of the parts is larger than the whole. This may not hold here.</li>
</ul>


This price for Toyota Industries (6201 JP) is WAY too light. Hold, don't sell. If it trades below or at terms, buy more. Quickly. Expect it will go higher.
Perhaps the simplest solution is to offer Glencore (GLEN LN) shareholders the option of Rio Ltd (RIO AU) or Rio PLC (RIO LN), which would naturally compress the dual-class spread.

Simcere Pharmaceutical (2096 HK) is spinning-off and listing 83.1%-held Simcere Zaiming on the HKEx. Often, the sum of the parts is larger than the whole. This may not hold here.


Last Week In Event SPACE: Rio/Glencore, Simcere Pharma, Mandom Corp, Qube, Jinke Smart

<ul>
<li>I tally 38 - mostly firm, mostly Asia-Pac - arb transactions currently being discussed and analysed on Smartkarma. Those arbs metrics and upcoming events are detailed below.</li>
<li>Two new deal were discussed on Smartkarma this week: <a href="https://www.smartkarma.com/entities/sunway-bhd" target="_blank" data-smartkarma-citation="entities:11025:1" rel="noopener">Sunway Bhd (SWB MK)</a>'s Offer for <a href="https://www.smartkarma.com/entities/ijm-corp-bhd" target="_blank" data-smartkarma-citation="entities:16784:1" rel="noopener">IJMCorp (IJM MK)</a>, and <a href="https://www.smartkarma.com/entities/wuxi-xdc-cayman-inc" target="_blank" data-smartkarma-citation="entities:39917:1" rel="noopener">WuXi XDC  (2268 HK)</a>'s tilt for <a href="https://www.smartkarma.com/entities/biodlink-international" target="_blank" data-smartkarma-citation="entities:28192:1" rel="noopener">BioDlink International (1875 HK)</a>.</li>
<li>Key updates/news also took place on: <a href="https://www.smartkarma.com/entities/dongfeng-motor-group-co-ltd-h" target="_blank" data-smartkarma-citation="entities:910:1" rel="noopener">Dongfeng Motor (489 HK)</a>, <a href="https://www.smartkarma.com/entities/minmetals-land-ltd" target="_blank" data-smartkarma-citation="entities:1917:1" rel="noopener">Minmetals Land (230 HK)</a>, and <a href="https://www.smartkarma.com/entities/low-keng-huat-singapore-ltd" target="_blank" data-smartkarma-citation="entities:1928:1" rel="noopener">Low Keng Huat Singapore (LKH SP)</a>.</li>
</ul>


I tally 38 - mostly firm, mostly Asia-Pac - arb transactions currently being discussed and analysed on Smartkarma. Those arbs metrics and upcoming events are detailed below.
Two new deal were discussed on Smartkarma this week: Sunway Bhd (SWB MK)'s Offer for IJMCorp (IJM MK), and WuXi XDC  (2268 HK)'s tilt for BioDlink International (1875 HK).
Key updates/news also took place on: Dongfeng Motor (489 HK), Minmetals Land (230 HK), and Low Keng Huat Singapore (LKH SP).


Asia-Pac M&A Weekly Wrap: Toyota Industries, BioDlink, IJM Corp, Dongfeng Motor, Minmetals Land

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sunway-bhd" target="_blank" data-smartkarma-citation="entities:11025:1" rel="noopener">Sunway Bhd (SWB MK)</a> has tabled a voluntary RM11bn cash/scrip Offer for <a href="https://www.smartkarma.com/entities/ijm-corp-bhd" target="_blank" data-smartkarma-citation="entities:16784:1" rel="noopener">IJM Corp Bhd (IJM MK)</a>, in a move to combine two of Malaysia's largest construction and property plays.</li>
<li>The Jeffrey Cheah-backed Sunway is offering RM3.15/share, split 10% (RM0.315/share) in cash, and RM 2.8350 in new Sunway shares. The key condition is a 50% acceptance hurdle.</li>
<li>Pricing appears light - IJM traded higher in August 2024. Yet IJM's bottom line has stalled. Enhanced scale is attractive. A tie-in has been long-rumoured.</li>
</ul>



Sunway Bhd (SWB MK) has tabled a voluntary RM11bn cash/scrip Offer for IJM Corp Bhd (IJM MK), in a move to combine two of Malaysia's largest construction and property plays.
The Jeffrey Cheah-backed Sunway is offering RM3.15/share, split 10% (RM0.315/share) in cash, and RM 2.8350 in new Sunway shares. The key condition is a 50% acceptance hurdle.
Pricing appears light - IJM traded higher in August 2024. Yet IJM's bottom line has stalled. Enhanced scale is attractive. A tie-in has been long-rumoured.


IJM Corp (IJM MK): Sunway's Offer Is Light. But Scale Is Key

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/ijm-corp-bhd" target="_blank" data-smartkarma-citation="entities:16784:1" rel="noopener">Ijm Corp Bhd (IJM MK)</a> disclosed a cash/scrip conditional voluntary offer from <a href="https://www.smartkarma.com/entities/sunway-bhd" target="_blank" data-smartkarma-citation="entities:11025:1" rel="noopener">Sunway Bhd (SWB MK)</a> valued at RM3.15, a 14.5% premium to the last close price. </li>
<li>The offer is unattractive as the terms favour Sunway rather than IJM shareholders. The timing is opportunistic, given Sunway’s relative share-price strength vs. IJM. </li>
<li>The key conditions are Sunway shareholder approval and a 50% minimum acceptance condition. Despite an unattractive offer, both these conditions are low risk. </li>
</ul>



Ijm Corp Bhd (IJM MK) disclosed a cash/scrip conditional voluntary offer from Sunway Bhd (SWB MK) valued at RM3.15, a 14.5% premium to the last close price. 
The offer is unattractive as the terms favour Sunway rather than IJM shareholders. The timing is opportunistic, given Sunway’s relative share-price strength vs. IJM. 
The key conditions are Sunway shareholder approval and a 50% minimum acceptance condition. Despite an unattractive offer, both these conditions are low risk. 


IJM Corp (IJM MK): Sunway’s Cash/Scrip Conditional Voluntary Offer

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analyzed the changes in short interest of Bursa stocks as of Jul 18th. The aggregated short interest is USD386m.</li>
<li>We tabulate league tables for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.</li>
<li>We highlight short interest changes in Top Glove, Axiata, Sunway, NationGate, Supermax.</li>
</ul>


We analyzed the changes in short interest of Bursa stocks as of Jul 18th. The aggregated short interest is USD386m.
We tabulate league tables for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.
We highlight short interest changes in Top Glove, Axiata, Sunway, NationGate, Supermax.


Bursa Short Interest Weekly (Jul 18th): Top Glove, Axiata, Sunway, NationGate, Supermax

Malaysia

Sunway Bhd. is a property development and construction company. The Company's other business divisions include quarrying and building materials trading and manufacturing, hospitality, leisure, and healthcare.

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Sunway Bhd (SWB MK)

Last Week In Event SPACE: Rio/Glencore, Simcere Pharma, Mandom Corp, Qube, Jinke Smart

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

Asia-Pac M&A Weekly Wrap: Toyota Industries, BioDlink, IJM Corp, Dongfeng Motor, Minmetals Land

This insight provides a summary of gross/annualised spreads (on deals discussed on Smartkarma) across Asia-Pacific as at the last trading date, and...

David Blennerhassett

IJM Corp (IJM MK): Sunway's Offer Is Light. But Scale Is Key

Trading wide to terms (9.7%). If Malaysian arbs are your bag, I'd be getting some exposure here. There is still scope for a bump. Conservatively,...

David Blennerhassett

IJM Corp (IJM MK): Sunway’s Cash/Scrip Conditional Voluntary Offer

The offer is unattractive as the terms favour Sunway rather than IJM shareholders. However, the offer's key conditions are low-risk.

Arun George

Bursa Short Interest Weekly (Jul 18th): Top Glove, Axiata, Sunway, NationGate, Supermax

We analyzed Bursa Malaysia short interest report for the past week and highlighted short interest changes in Top Glove, Axiata, Sunway, NationGate,...

Ke Yan, CFA, FRM

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