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Equity Bottom-Up

Washington H. Soul Pattinson and Co. Ltd / Equity Bottom-Up

Washington H. Soul Pattinson and Co. Ltd (SOL AU)

<ul>
 <li>Washington H. Soul Pattinson (SOL) is a diversified investment house with a 120+ year history, offering investors exposure to a broad portfolio of uncorrelated assets across various classes, including listed equities, private equity, property, and credit.</li>
 <li>The company has an unparalleled track record of consistently growing dividends, having increased its payout to shareholders for over two decades, supported by a long-term, value-oriented investment philosophy focused on cash-generative businesses.</li>
 <li>A recent strategic merger with Brickworks has simplified the corporate structure, unlocked strategic flexibility, and provided a net cash balance sheet, positioning SOL to capitalize on new investment opportunities across its target asset classes.</li>
</ul>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.


  Washington H. Soul Pattinson (SOL) is a diversified investment house with a 120+ year history, offering investors exposure to a broad portfolio of uncorrelated assets across various classes, including listed equities, private equity, property, and credit.
  The company has an unparalleled track record of consistently growing dividends, having increased its payout to shareholders for over two decades, supported by a long-term, value-oriented investment philosophy focused on cash-generative businesses.
  A recent strategic merger with Brickworks has simplified the corporate structure, unlocked strategic flexibility, and provided a net cash balance sheet, positioning SOL to capitalize on new investment opportunities across its target asset classes.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Primer: Washington H. Soul Pattinson and Co. Ltd (SOL AU) - Apr 2026

Derivatives and Quantitative Strategist

Gaudenz Schneider

<ul>
<li>
Context: This Insight follows up on previously highlighted relative value opportunities, using a statistical methodology based on mean-reversion to identify opportunities in paired securities.</li>
<li>
Highlight: Currently eight pair trade opportunities across three markets and four sectors persist.</li>
<li>
Why read: Statistical analysis offers a unique perspective on relative value. Gain insights into actionable statistical pair trade opportunities and monitor performance of previously highlighted pairs. </li>
</ul>



Context: This Insight follows up on previously highlighted relative value opportunities, using a statistical methodology based on mean-reversion to identify opportunities in paired securities.

Highlight: Currently eight pair trade opportunities across three markets and four sectors persist.

Why read: Statistical analysis offers a unique perspective on relative value. Gain insights into actionable statistical pair trade opportunities and monitor performance of previously highlighted pairs. 


Relative Value Opportunities in Asia-Pac, Pair Trade Roundup (25 Aug)

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Washington H. Soul Pattinson and Co. Ltd / Event-Driven

<ul>
<li>Following shareholder approval, there'll be an index DELetion for <a href="https://www.smartkarma.com/entities/brickworks-ltd" target="_blank" data-smartkarma-citation="entities:2726:1" rel="noopener">Brickworks (BKW AU)</a>, and an index UPweight for <a href="https://www.smartkarma.com/entities/washington-h-soul-pattinson-and-co-ltd" target="_blank" data-smartkarma-citation="entities:6054:1" rel="noopener">Soul Patts (SOL AU)</a>. BKW's last day of trading is the 15th September. </li>
<li>
<a href="https://www.smartkarma.com/entities/minebea-mitsumi-inc" target="_blank" data-smartkarma-citation="entities:5032:1" rel="noopener">Minebea Mitsumi (6479 JP)</a>'s Offer for <a href="https://www.smartkarma.com/entities/shibaura-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:12704:1" rel="noopener">Shibaura Electronics (6957 JP)</a>. That leaves this to be done by <a href="https://www.smartkarma.com/entities/yageo-corporation" target="_blank" data-smartkarma-citation="entities:13212:1" rel="noopener">Yageo Corporation (2327 TT)</a>, unopposed.</li>
<li>After a protracted succession stoush, Rupert Murdoch's son Lachlan asserts control of <a href="https://www.smartkarma.com/entities/news-corp-class-b" target="_blank" data-smartkarma-citation="entities:5990:1" rel="noopener">News Corp Class B (NWS US)</a> and <a href="https://www.smartkarma.com/entities/fox-corp-b470c4a5-c947-401c-af9f-3e6497d73406" target="_blank" data-smartkarma-citation="entities:36135:1" rel="noopener">Fox (FOXA US)</a>.</li>
</ul>


Following shareholder approval, there'll be an index DELetion for Brickworks (BKW AU), and an index UPweight for Soul Patts (SOL AU). BKW's last day of trading is the 15th September. 

Minebea Mitsumi (6479 JP)'s Offer for Shibaura Electronics (6957 JP). That leaves this to be done by Yageo Corporation (2327 TT), unopposed.
After a protracted succession stoush, Rupert Murdoch's son Lachlan asserts control of News Corp Class B (NWS US) and Fox (FOXA US).


Last Week In Event SPACE: Brickworks/Soul Patts, Shibaura Electronics, News Corp/Fox/REA, Dongfeng

<ul>
<li>There is, or perhaps, was, imbedded value via the cross-holding. However, <a href="https://www.smartkarma.com/entities/washington-h-soul-pattinson-and-co-ltd" target="_blank" data-smartkarma-citation="entities:6054:1" rel="noopener">Soul Patts (SOL AU)</a> &amp; <a href="https://www.smartkarma.com/entities/brickworks-ltd" target="_blank" data-smartkarma-citation="entities:2726:1" rel="noopener">Brickworks (BKW AU)</a>'s combined market cap has increased 18% or A$3.1bn since announcing their merger.</li>
<li>
<a href="https://www.smartkarma.com/entities/furukawa-battery-co-ltd" target="_blank" data-smartkarma-citation="entities:6513:1" rel="noopener">Furukawa Battery (6937 JP)</a> is a VERY low-priced MBO-like transaction. The pricing process is unacceptable. It is a take-under. It is BAD process. But it'll get done.</li>
<li>For a company that has consistently spilled red ink at the stub level, there is no justification why <a href="https://www.smartkarma.com/entities/pccw-ltd" target="_blank" data-smartkarma-citation="entities:873:1" rel="noopener">PCCW Ltd (8 HK)</a> would/should trade at a NAV premium.</li>
</ul>


There is, or perhaps, was, imbedded value via the cross-holding. However, Soul Patts (SOL AU) &amp; Brickworks (BKW AU)'s combined market cap has increased 18% or A$3.1bn since announcing their merger.

Furukawa Battery (6937 JP) is a VERY low-priced MBO-like transaction. The pricing process is unacceptable. It is a take-under. It is BAD process. But it'll get done.
For a company that has consistently spilled red ink at the stub level, there is no justification why PCCW Ltd (8 HK) would/should trade at a NAV premium.


Last Week In Event SPACE: Soul Patts/Brickworks, Furukawa Battery, PCCW, TPG Telecom

<ul>
<li>Back on the 2 June 2025, <a href="https://www.smartkarma.com/entities/washington-h-soul-pattinson-and-co-ltd" target="_blank" data-smartkarma-citation="entities:6054:1" rel="noopener">Washington H. Soul Pattinson and Co. Ltd (SOL AU)</a> and 42.92%-held <a href="https://www.smartkarma.com/entities/brickworks-ltd" target="_blank" data-smartkarma-citation="entities:2726:1" rel="noopener">Brickworks Ltd (BKW AU)</a> announced that, via inter-conditional Schemes, they would merge.</li>
<li>TopCo, a new ASX-listed company, will acquire all of the shares in SOL and BKW via the issuance of TopCo shares: 1:1 for SOL and 0.82:1 for BKW.</li>
<li>
<a href="https://announcements.asx.com.au/asxpdf/20250804/pdf/06mhm404tw91x7.pdf" target="_blank" rel="noopener">The Scheme Booklet is now out</a>, with Scheme Meetings on the 10th September, and expected implementation on or before the 23 September. The IE Kroll) says "fair &amp; reasonable".</li>
</ul>


Back on the 2 June 2025, Washington H. Soul Pattinson and Co. Ltd (SOL AU) and 42.92%-held Brickworks Ltd (BKW AU) announced that, via inter-conditional Schemes, they would merge.
TopCo, a new ASX-listed company, will acquire all of the shares in SOL and BKW via the issuance of TopCo shares: 1:1 for SOL and 0.82:1 for BKW.

The Scheme Booklet is now out, with Scheme Meetings on the 10th September, and expected implementation on or before the 23 September. The IE Kroll) says "fair &amp; reasonable".


Soul Patts/Brickworks: 10th September Vote To Collapse Circularity

Australia

Washington H. Soul Pattinson & Company Limited is an investment holding company. The Company owns shares and properties, coal mining, bulk handling, commercial television licensee, telecommunications carrier, merchant banking, funds management, pharmaceutical retailing, manufacture, processing and marketing of biscuits and cakes.

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Washington H. Soul Pattinson and Co. Ltd (SOL AU)

Primer: Washington H. Soul Pattinson and Co. Ltd (SOL AU) - Apr 2026

Washington H. Soul Pattinson (SOL) is a diversified investment house with a 120+ year history, offering investors exposure to a broad portfolio...

αSK

Relative Value Opportunities in Asia-Pac, Pair Trade Roundup (25 Aug)

Quantitative analysis identifies eight pair trade opportunities across three markets and four sectors, offering unique insights into relative value.

Gaudenz Schneider

Last Week In Event SPACE: Brickworks/Soul Patts, Shibaura Electronics, News Corp/Fox/REA, Dongfeng

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

Last Week In Event SPACE: Soul Patts/Brickworks, Furukawa Battery, PCCW, TPG Telecom

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

Soul Patts/Brickworks: 10th September Vote To Collapse Circularity

This done. The obvious trade is to short SOL, buy BKW. The current gross/annualised spread at 0.2%/1.6%. Super tight. Alternatively, be long BKW...

David Blennerhassett

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Primer: Washington H. Soul Pattinson and Co. Ltd (SOL AU) - Apr 2026

Washington H. Soul Pattinson (SOL) is a diversified investment house with a 120+ year history, offering investors exposure to a broad portfolio...

αSK

Relative Value Opportunities in Asia-Pac, Pair Trade Roundup (25 Aug)

​Quantitative analysis identifies eight pair trade opportunities across three markets and four sectors, offering unique insights into relative value.

Gaudenz Schneider

Last Week In Event SPACE: Brickworks/Soul Patts, Shibaura Electronics, News Corp/Fox/REA, Dongfeng

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

Last Week In Event SPACE: Soul Patts/Brickworks, Furukawa Battery, PCCW, TPG Telecom

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

Soul Patts/Brickworks: 10th September Vote To Collapse Circularity

This done. The obvious trade is to short SOL, buy BKW. The current gross/annualised spread at 0.2%/1.6%. Super tight. Alternatively, be long BKW...

David Blennerhassett

Quantitative analysis identifies eight pair trade opportunities across three markets and four sectors, offering unique insights into relative value.