Podcast by Joe Weisenthal & Tracy Alloway, Odd Lots

Odd Lots

Podcast by Joe Weisenthal & Tracy Alloway

Bloomberg's Joe Weisenthal and Tracy Alloway explore the most interesting topics in finance, markets and economics. Join the conversation every Monday and Thursday.

Thematic (Sector/Industry)

<ul><li>Nicotine alternatives like zins and nicotine gum are becoming increasingly popular</li><li>Sales of these products have skyrocketed, leading to shortages</li><li>The regulatory landscape around nicotine products is complex and constantly evolving</li></ul>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Nicotine alternatives like zins and nicotine gum are becoming increasingly popularSales of these products have skyrocketed, leading to shortagesThe regulatory landscape around nicotine products is complex and constantly evolvingThis content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Zyns, Vapes and the Very Weird Market for New Nicotine Products

European Event-Driven Analyst

Jesus Rodriguez Aguilar

Event-Driven

<ul>
<li>At the end of the further extended acceptance period, PMHH owns 93.11% of the shares of Swedish Match (obtained both through shares tendered and market purchases).</li>
<li>PMHH intends to initiate compulsory redemption under the Swedish Companies Act to acquire all remaining shares in Swedish Match and request delisting from Nasdaq Stockholm. PMI wins again.</li>
<li>Although the shares are still liquid, gross spread is 2 bps, and therefore there is no trade worth considering, in my view.</li>
</ul>


At the end of the further extended acceptance period, PMHH owns 93.11% of the shares of Swedish Match (obtained both through shares tendered and market purchases).
PMHH intends to initiate compulsory redemption under the Swedish Companies Act to acquire all remaining shares in Swedish Match and request delisting from Nasdaq Stockholm. PMI wins again.
Although the shares are still liquid, gross spread is 2 bps, and therefore there is no trade worth considering, in my view.


Philip Morris/​​Swedish Match: Squeeze-Out

Index Rebal Trades & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal Trades & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

<ul>
<li>In this insight, we take a look at the names leading the race to become ADDs/DELs for the STOXX Europe 600 and EuroSTOXX Indices for the December 2022 Rebalance.</li>
<li>Including the addition of <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>, there could be around 7 ADDs/DELs during the December 2022 Rebalance. </li>
<li>In addition, there could be as many as five more intra-review changes before the end of the year.</li>
</ul>


In this insight, we take a look at the names leading the race to become ADDs/DELs for the STOXX Europe 600 and EuroSTOXX Indices for the December 2022 Rebalance.
Including the addition of Porsche AG (P911 GR), there could be around 7 ADDs/DELs during the December 2022 Rebalance. 
In addition, there could be as many as five more intra-review changes before the end of the year.


STOXX Europe Quiddity Leaderboard Dec 22: ~7 Regular ADDs/DELs & ~5 Intra-Review ADDs/DELs Possible

<ul>
<li>PMI has obtained acceptances of 82.59%, waives the 90% acceptance condition and extends the acceptance period until 25 November (settlement on 2 December).</li>
<li>SWMA shares are trading at an all-time high of SEK 115.8. Gross spread is 0.17% (estimated annual return is 2.52%). The market discounts that the offer will be successful.</li>
<li>Done deal. PMI is ready to wait until claiming final victory, quite possibly in the further extended acceptance period. It should be able to squeeze-out and delist. Accept offer.</li>
</ul>


PMI has obtained acceptances of 82.59%, waives the 90% acceptance condition and extends the acceptance period until 25 November (settlement on 2 December).
SWMA shares are trading at an all-time high of SEK 115.8. Gross spread is 0.17% (estimated annual return is 2.52%). The market discounts that the offer will be successful.
Done deal. PMI is ready to wait until claiming final victory, quite possibly in the further extended acceptance period. It should be able to squeeze-out and delist. Accept offer.


<ul>
<li>4 November was the deadline to tender. PMI threatened to walk away if it didn't reach 90%. Some funds that opposed the deal trimmed their stakes, likely bought by arbs.</li>
<li>The FT has reported that Elliot (10.5% stake) has tendered and that by 4 November over 80% acceptances were recorded. PMI is very likely to reach now over 90% acceptances.</li>
<li>Results will be announced on 7 November, with settlement on 11 November. The squeeze-out procedure is likely be initialed as soon as possible after settlement. Gross spread is 0.87%.</li>
</ul>


4 November was the deadline to tender. PMI threatened to walk away if it didn't reach 90%. Some funds that opposed the deal trimmed their stakes, likely bought by arbs.
The FT has reported that Elliot (10.5% stake) has tendered and that by 4 November over 80% acceptances were recorded. PMI is very likely to reach now over 90% acceptances.
Results will be announced on 7 November, with settlement on 11 November. The squeeze-out procedure is likely be initialed as soon as possible after settlement. Gross spread is 0.87%.


Sweden

Swedish Match AB manufactures and markets smokeless tobacco products. The Company offers products such as snus, moist snuff, and chewing tobacco. Swedish Match also manufactures and markets machine made cigars as well as matches and lighters.

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Swedish Match (SWMA SS)

Zyns, Vapes and the Very Weird Market for New Nicotine Products

Joe Wiesenthal and Tracy Alaway talk about the increasing popularity of nicotine pouches like Zin on their Odd Lots podcast, exploring the...

Odd Lots

Philip Morris/Swedish Match: Squeeze-Out

The total stake of shares in Swedish Match held by PMHH, correspond to c. 93.11%. It intends to initiate squeeze-out and delisting from Nasdaq...

Jesus Rodriguez Aguilar

STOXX Europe Quiddity Leaderboard Dec 22: ~7 Regular ADDs/DELs & ~5 Intra-Review ADDs/DELs Possible

I expect the top ranked Potential ADDs to outperform the top ranked Potential DELs until the official Rebalance results are confirmed at the...

Janaghan Jeyakumar, CFA

Offer Becomes Unconditional

PMI has obtained acceptances of 82.59%, waives the 90% acceptance condition and extends the acceptance period until 25 November (settlement on 2...

Jesus Rodriguez Aguilar

Elliot Tenders Its Stake

The FT reported that Elliott Management had decided to tender its stake. This means that PMI should get very close to the 90% threshold to initiate...

Jesus Rodriguez Aguilar

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Zyns, Vapes and the Very Weird Market for New Nicotine Products

Joe Wiesenthal and Tracy Alaway talk about the increasing popularity of nicotine pouches like Zin on their Odd Lots podcast, exploring the...

Odd Lots

Philip Morris/​​Swedish Match: Squeeze-Out

The total stake of shares in Swedish Match held by PMHH, correspond to c. 93.11%. It intends to initiate squeeze-out and delisting from Nasdaq...

Jesus Rodriguez Aguilar

STOXX Europe Quiddity Leaderboard Dec 22: ~7 Regular ADDs/DELs & ~5 Intra-Review ADDs/DELs Possible

I expect the top ranked Potential ADDs to outperform the top ranked Potential DELs until the official Rebalance results are confirmed at the...

Janaghan Jeyakumar, CFA

Offer Becomes Unconditional

PMI has obtained acceptances of 82.59%, waives the 90% acceptance condition and extends the acceptance period until 25 November (settlement on 2...

Jesus Rodriguez Aguilar

Elliot Tenders Its Stake

The FT reported that Elliott Management had decided to tender its stake. This means that PMI should get very close to the 90% threshold to initiate...

Jesus Rodriguez Aguilar

Philip Morris/Swedish Match: Squeeze-Out